Here at CCN, I was able to talk with Jeffrey Smith of Cex.io and ask him a few questions about cex.io and ghash.io. For those readers that are unfamiliar with the Cex.io/Ghash.io websites, they provide simple access to mining power of any size for end users around the world. With Cex.io, users can purchase GH/s on a freely floating hash for Bitcoin exchange. Ghash.io is the mining pool that rented equipment from Cex.io is pointed towards, many other miners also use Ghash.io because they are able to offer 0% fees and a high hashrate consistently.
Back a few months ago, CCN raised concerns that Ghash.io's hashrate was too high. In response, Jeffrey Smith released a press release addressing the Bitcoin community's concerns back in January. Mr. Smith was kind enough to answer more questions from me regarding Cex.io's security, future plans, and changes.
In conjunction with this interview, Cex.io is having a promotion starting at 2PM GMT, today 3/13/2014. Read below for my interview with Jeffrey Smith.
Since February 11th when Cex.io started strongly suggesting 2fa to its users, has there been a drop in the amount of hack-related support issues?
Yes, the amount of hack-related issues has dropped by a significant amount. Just to be clear - all our actions on CEX.IO require email and/or 2FA confirmation. However, before mandatory 2FA was enabled - hackers targeted users’ emails and computers and in some cases were able to bypass email confirmations and withdraw funds. That’s not the case anymore.
How big is the Cex.io team, whom are the founders?
CEX.IO was founded by Alex Luts, the current CEO. The CEX.IO team consists of almost 20 employees, and due to a huge work load and increasing interest in cloud mining and trading - we are growing very fast.
When will Cex.io allow users the option to mine on other pools, as promised in your January 9th press release?
We have our development team working on it, however each pool has its own structure and it is very hard to implement a unified solution for all pools. Also there is an issue that GHS are unable to switch to different pools for now due to dynamic difficulty settings. There has been some progress in this field, however there is still much to be done. I won’t be able to tell you the ETA
Which parts of the world do your user base inhabit?
Our main users come from the US, UK, Poland, Germany, China, Brazil, Spain, Russia, Netherlands
What is the biggest myth about Bitcoin mining that you'd like to dispel?
The biggest myth is that Bitcoin mining is no longer profitable.
CEX.IO, which consists of a unique combination of cloud mining and trading, is a great solution.
Our business model allows users to trade GHS while they mine Bitcoins and mine Bitcoins even when the GHS are being sold.
This gives a great leverage over hardware mining.
What are Cex.io's future mining hardware plans? Besides BitFury, which Bitcoin ASIC companies have caught your eye as a trustworthy service?
We are looking for various ways to find new mining hardware. We need to try them all, in order to see who is trustworthy and who isn’t.
The biggest milestone we are trying to reach right now is Scrypt ASICS, but they are still a long way from production and deployment.
What are your thoughts on Scrypt Mining ASICs? Is there a place for them in the world, or even CEX.io in the future?
Yes, there is definitely a place for Scrypt ASICs in our future. Unfortunately, due to scrypt's specific mining structure - the ASICS are not so easy and cheap to build.
Could you shed some light on CEX.io's future plans for Bitcoin, I believe y'all are planning to offer some much needed services such as escrow and micropayments?
Right now our biggest concern is the exchange platform. It is still in beta, meaning it is a little rough around the edges. Just yesterday we have introduced scrypt mining on GHash.IO. Now users are able to connect their scrypt miners to GHash.IO and mine Litecoins, Dogecoins, Auroracoins and Feathercoins.
Cloudmining is not yet available for scrypt, but we are doing everything possible to make it happen.
We are also doing a promotion of Litecoin mining on GHash.IO
Starting from tomorrow 2 pm GMT - we will double all litecoin mining rewards for 1 week :)
In the future we will also announce the ability to exchange fiat currencies for commodities and virtual currencies.
Our next step will be implementing GHS futures, chips and mining boards, which can be used to assemble miners.
After the exchange is released from beta - we will definitely point our developers into escrow and micro-payments.
What are your thoughts on the claim that your GH/BTC market provides the only free market derived metric for a spot price for 1 GH/s? Do you think the market that you've created factors in future difficulty changes and changing pre-order schedules?
Yes, we do believe that CEX.IO has an effect on the difficulty change, however we also would like to point out that we are only an exchange platform, and the increasing user base is the real cause of it.
Thanks so much for your time Mr. Smith, are there any further messages you'd like to share with our readers?
I’d like to thank your readers for their interest in CEX.IO and promise to deliver the best possible cloud mining service out there, with quality support and fair rules for mining and trading.