CEX.IO stopped mining

In these days are many news around the Bitcoin scene and the most of them are bad. Falling prices, a Bitstamp hack and other things made it more and more difficult to bethink of the positive aspects of Bitcoin. Particularly the falling prices pull other effects behind: mining will be more difficult because the profits sink rapidly. The Bitcoin service CEX.IO seems to be hit with it, because they stopped some parts of their activities.

CEX.IO decided to stop the cloud mining because of the sinking Bitcoin price. With CEX.IO customers made a invest and could get profits from the mining. But the falling prices make it more difficult to receive profits because the costs for mining doesn’t sink – on the contrary. The requirements on the hardware increase and it get more and more expensive to build a network that could make the mining successful.

From hearsay, CEX.IO dispose of an inefficient hardware network that drain too much power and so it’s nearly impossible to hold the profits of mining in view of the falling prices of Bitcoin. So CEX.IO decided to stop the mining for an indefinite period. And it seems that other services like this could get similar problems. So is this the start of a consolidation of the industry?

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