All About BTC, LTC, ETH mining as well as other alternative crypto currencies
It seems that the source of all the trouble people had with Cryptsy in the last months were caused by a hack of the crypto currency exchange that has happened over 1 year ago in which there were about 13000 BTC and 300000 LTC stolen. The big question is why Cryptsy is coming clean to its users just now and all this time they were trying to basically lie them about the various issues with coin withdraws at the exchange. It seems that they tried to cover up things expecting to recover the lost coins, but they were not able to and as a result they only prolonged the inevitable. It could be also this announcement that has resulted in the decline of the Bitcoin price we are now seeing on US and EU exchanges, while at Asian exchanges the price of BTC is still higher.
In the last few months things with the crypto currency exchange Cryptsy haven’t been good at all, there have been a lot of complains from users that they cannot withdraw their coins and the support is not responding to them for days or solving their issues at all. Updates from Cryptsy regarding issues and user complaints haven’t been good either with mostly some reports claiming that the problems are caused by various technical issues. Users however are still reporting that they are not able to withdraw coins, mostly BTC, but others as well in either large or small amounts and thus concerns are rising about the future of the exchange. There are already speculations that Cryptsy is following in the footsteps of MtGox and it is just a matter of time before everything falls down. The exchange is reporting that the last 24 hour volume is about 264 BTC, so apparently quite a few users are still using it, but we would still advice you to try to get your coins out of the exchange if you have not initiated withdraws yet while you still might actually get something out. Some users had more success converting BTCs to other crypto coins and then withdrawing altocoins instead of directly withdrawing in Bitcoin, so you might try using multiple currencies and in multiple transactions to move any coins you might have in Cryptsy. We have not personally used Cryptsy for quite some time as there have been a lot of other more user friendly and problem free altcoin exchanges available for a while already…
The DigitalX Mintsy service has been available for a bit already (currently in beta), but we haven’t checked it until recently when we decided to register and give it a quick look. It essentally combined multiple services into one with some nice features and also some integration with the Cryptsy crypto currency exchange. What you get at Mintsy is a service where you can mine with your own mining hardware, you can sell your hashrate ot rent from other users for mining various algorithms or you can purchase a contract for mining hashrate to mine SHA256 or Scrypt-based crypto currencies or with other words cloud mining. It is all integrated into a clean and useful interface with a user friendly wizard intended to help bnot so advanced users to get started. So far, so good… things do really look like promising, or at least until you take a deeper look and do some math.
We are going to be focusing on the Mintsy Contracts which are essentially giving you cloud mining hashrate for a limited time – 1 month, 3 months or 6 months. The contract price includes all fees, so you do not pay anything extra for maintenance for example, but still the process are a bit higher than you would consider them profitable and worth investing into. Here is a quick example, if you buy a SHA256 mining contract for 100 GHS with a 30 day duration you would have to pay $19 USD for it, but with the current market condition mining for Bitcoins you would be earning just about 0.0317 BTC or about $7.2 USD at the current exchange price. Longer term contracts and for more hashrate do seem a bit better in terms of return of investment, though they are riskier, but you would still end up a bit short on what you have paid and that is if the market conditions remain as they are at the moment. The good thing is that you have the ability to mine in a pool and a coin of your choosing and soon there will also hopefully be a market for contracts where you should be able to sell them to other users if you decide to get out earlier. The situation with the Scrypt mining contracts is slightly worse, so the return of investment there and the risk is even higher.
It is up to you to decide where to invest and how much if you are interested in mining contracts, but for the moment we do not plan to go for any of the mining plans offered by Mintsy. As for using their mining pools or using the rig renting or leasing functionality, there are also better and more advanced services focused on either of these available that we would prefer.