Bit-X Review

By cloudminer on April 1, 2015

Good

  • Market-driven pricing
  • Backed by physical hardware
  • Partnered with Bitfury
  • Can sell contracts

Bad

  • High maintenance fees
  • No referral/signup bonus
  • No mining dashboard
  • No proof of mining
Trust - 10
Price - 9
Maintenance Fee - 7
Dashboard - 7
Payment Reliability - 9
Signup Bonus / Referral - 5
7.8

Well Above Average

History of BIT-X

BIT-X made an official announcement of their diverse exchange platform, including the ability to mine and trade GHS, in November 2014.  Their initial launch was greeted with some skepticism amongst Bitcointalk members, as they questioned whether they were truly partnered with BitFury.  BitFury confirmed their partnership in this post.

Some also questioned BIT-X’s claim to operate in close to 30 offices around the world, including “London, UK; San Francisco, USA; Malaga, Spain; Limassol, Cyprus; La Valleta, Malta.”  Their main office is apparently Belize, and they offer a full range of Bitcoin and Litecoin trading, cloud mining via GHS contracts, and now a debit card.  Bit-X is still pretty new on the cloud mining scene, so I’ll follow them closely.

Trust Rating

What makes BIT-X a more trustworthy cloud mining company than others is their strong relationship with BitFury.  BitFury manufactures ASIC chips and complete miners, but they deal exclusively with large corporate customers, including BIT-X.  They have also published the corporate headquarters of their parent company XBIT Ltd, which is located at No. 1 Orchid Garden Street, Belmopan, Belize.  XBIT Ltd is also a licensed forex participant in Belize, so they have at least some form of governmental license, which adds to their credibility.  Finally, the fact that you can sell your cloud mining contracts helps out their trust score in a big way; being able to sell your Bitcoin mining contracts gives investors an exit strategy.

Price Rating

BIT-X’s pricing is entirely market driven, so price per GHS has ranged from 0.00046BTC/GH to 0.00255BTC/GH.  As of review time, the market price of GHS is approximately 0.0016BTC, which is certainly on the high side – but again, this is market-driven pricing, so I can’t fault BIT-X for this.  Compared to the other trusted providers (HashNest, Genesis Mining and ZeusHash), BIT-X’s pricing is right in the middle.

Maintenance Fee Rating

BIT-X’s maintenance fees are on the high side, behind all of the competitors mentioned above.  At launch time they had one of the highest maintenance fees in the industry ($0.099/GHS/Month) but in mid-January 2015 they dropped the fees to a reasonable level ($0.051/GHS/Month).  They are still higher than their main competitors, HashNest, Genesis Mining and ZeusHash – not to mention the companies that offer zero maintenance fees – and their score suffers because of it.

Dashboard Rating

BIT-X has a nice dashboard for trading, but they don’t really focus on the metrics relating to mining, so their score suffers a bit.  I like to see a clean dashboard that presents all of my key data points, including my current hash power, a graph of earnings per day, and a simple interface to add more hash power.  As you can see from BIT-X’s screenshots, they fall short in this area.  They do have a nice trading interface, but it’s simply not enough to overcome their lack of a useable dashboard.

Payment Reliability Rating

BIT-X has paid out consistently and on par with expected earnings for the past 21 days.  For example, my 66.5 GH/S (which cost 0.1BTC when I purchased them) are producing exactly the amount one would expect when plugging those numbers into any profitability calculator.  Mining fees are as promised for the most part, and are deducted daily at the same time as payouts.  However, there’s a strange discrepancy here – maintenance fees should be stable, but I’ve had 20% fluctuations in fees, ranging from 55% of earnings to as high as 65% of earnings.  I’m not sure why there would be such a large fluctuation in fees but not earnings.

Bit-X Referral and Signup Bonus

The bad news about BIT-X is that they don’t offer any kind of signup or referral bonus.  Hopefully they’ll change their stance and offer a bonus of some kind soon, but there’s nothing at the moment.

Conclusion

BIT-X is a solid cloud mining option, especially for those who aren’t willing to take big risks.  For the cloud mining industry, BIT-X is a trustworthy company.  They offer market-based pricing, which can result in both fantastic deals and mediocre pricing, so you just have to time your purchase.  They also give investors an exit strategy, which reduces their risk profile even further.  The biggest negatives are BIT-X’s maintenance fees (which are high, and fluctuate significantly), their lackluster dashboard, and the lack of any kind of signup or referral bonus.  Overall BIT-X sits in the middle of the pack, but definitely has room to grow, especially if they can reduce their maintenance fees and improve their dashboard.