Highly Unstable Virtual Currency "Bitcoins

Bitcoins are highly Unstable, the Price keeps going up to $1100 and then it crashes back one nite to $700 and again climbs to $1100, then again drops with negative news. Looks like buying has been more of speculative nature.

Is it worth mining:

Depends on what price you get the miners. Most of people who are benefitting are people who are talented to make the miners(and sell hashfast.com, BFL labs(butterfly labs).

The bulls are brilliant as they know what to do with the money they make. They rotate it, sell it on ebay/paypal or buy from one exchange and sell on other exchange which gives them more return. they resort to trading to improve the money.

There is a pump and dump scam going on, which leads them to pump it falsely and then dump.

In long run the above methods removes the trust on bitcoin and eventually the bitcoins will crash. Computer programmers/hackers/technologist should protect the bitcoin and not go greedy about it.

We evaluated some of the mining:

a. cloudhasing.com - Cloud mining for bitcoins. contracts are so costly like 1 Ths cost around $20,000 (for a one month pre-order booking). Now when we computed the amount of money you make at current exchange rate. First month you make good money like $10,000 as the difficulty increases(around 15% every month) the amount of machine you need is close to 20% every month to make the same money.

cloud providers also take management fee, contract payment fee, electricity - Cooling. So eventually you make only 50% of actual BTC which is made. So it actually takes around 5 months to recover your investment with all exchange rate, mining difficulty(maintained at 15% per month). If exchange rate for Bitcoin does not increase regularly then its not worth. After china talked about bitcoin , bitcoin has crashed with not much buyers. If there is negative news from india, US...most of bitcoin exchange rate would fall and there would be no takers.

Cloud mining companies out of greed are retaining the bitcoin (they earn from buy orders) and they will go backrupt eventually. One of the provider takes money 4 months in advance for cloud minning of BTC. by the time the contract comes its not worth.

b. Grouphashing(announced) contracts for mining litecoin. It is not worth. You spend 1Mhs - 1.2BTC for a year contract which is close to $800 in todays rate. Takes you 50 Litecoin in today exchange rate to buy. You may make 0.4 litecoin a day.

c. CEX.io is too costly and not worth the returns.

d. Miners like KNC - 3 Ths are better bet if they deliver on time after 3 months.

Bitcoin is a gambling. if Exchange rate constantly goes up, Mining difficulty increases drastic because every one wants to get into it. If exchange rate for BTC falls, mining difficulty decreases. The net money you make as investor is not really worth after all the pain.

The exchanges in india like BuysellBTC closes half the days. when you want to sell(price is high-they are shutdown) because they dont want to pay you. when its BTC rate is low, they close down because they dont want to sell you at low rate :) . So even if you make profit you wont get in hand.