CEX.IO and company CIO Jeffrey Smith believe that mining equipment should be sold at a fair market price. Currently in beta stages, CEX.IO is one of the first commodity exchanges, allowing users to trade mining facilities and fully maintained GHashes (Gigahash). The company has a unique approach to trading, and through this approach provides a way to trade on the increase or decrease in GHashes, while those mining facilities mine bitcoins for the user.
The company’s commodity-based model enables Bitcoin users to receive profit from trading GHashes, while also generating revenue from the mining power while they trade. According to CEX.IO, there is no waiting when trading GHS (gigahashes per second), because all mining equipment is purchased from trusted partners like the GHash.IO mining pool, which enables users to trade and mine simultaneously. The GHS are liquid, which means they can be sold for Bitcoin, Litecoin and Namecoin at any time and market price.A recent interview was conducted with CEX.IO’s Jeffrey Smith by Polish news portal bitcoin.pl, and further discusses the company’s future plans regarding mining and GHS trading, in addition to the future of commodity trading in the Bitcoin community. Following are portions of the interview with Jeffrey Smith.
Bitcoin.pl: When did you learn about Bitcoin, and how did CEX.IO get started?
Jeffrey Smith: The founders of CEX.IO actively participated in the development of the first FPGA mining chips and made substantial progress in this field. However, due to technological progress, they moved to ASICs and started developing the exchange platform in early January 2013.
BPL: Where are you located and what countries do you accept customers from?
JS: Our official representation is located in London, UK and our users are all over the world. USA hits the top of the list, but Poland is a close second in terms of user signups and overall exchange activity. We want to make sure CEX.IO can be used in all countries around the world.
BPL: How is CEX.IO innovative and what distinguishes you from other Bitcoin exchanges?
JS: Our core advantage lies in the unique scheme of joint GHS Trading and Cloud Mining. The purchased mining power can mine new Bitcoin (and some other altcoins, thanks to merged mining), while users trade on the CEX.IO exchange, gaining profit on the price difference. CEX.IO is the first commodity exchange of this type in the Bitcoin community.
BPL: How do you view the current legal status of Bitcoin?
JS: There is little space for manoeuvring in the virtual currency world, but we need strong Bitcoin supporters. We need to unite our efforts to expand Bitcoin and virtual currencies.
BPL: What are the biggest problems with Bitcoin from your experiences?
JS: At this stage Bitcoin isn’t perfect. In terms of usability and user interaction, it is still rough around the edges. Not all users have the proper knowledge of the Bitcoin protocol and how it works. Another big issue is that lots of users underestimate proper account security, making unauthorized access possible. We need to fight all that.
BPL: How do you view the role of the Bitcoin Foundation for organizing activities and initiatives around Bitcoin?
JS: We (CEX.IO) think they are doing a great job. It is hard to create a centralized organization in a decentralized community. We are also considering participating in the Bitcoin Foundation sometime soon.
BPL: How do you view the position of the traditional banking system toward Bitcoin?
JS: The financial system evolved, so banks should evolve as well. Traditional banks need to look into the future and start studying, testing and experimenting with cryptocurrencies. There are lots of services which banks can offer in the Bitcoin community. All they need to do is gain confidence in this aspect.
BPL: What are your plans for the future and where do you see the development of the Bitcoin ecosystem heading?
JS: We need to stay up to date with the crypto-world and provide services that people require. Right now, BTC mining and GHS trading are in demand. Soon scrypt mining will kick in and we might add some additional scrypt related features to CEX.IO. We also need to build the bridge between CEX.IO and fiat currencies. Additionally, we have several side projects that will be prominent in the Bitcoin economy as well.
Every day new infrastructure is being built and new services are being introduced. Let’s keep our faith in crypto.
Throughout the interview with bitcoin.pl, Mr. Smith also discusses Bitcoin’s position in the global system, regulation and the state of the economy, along with the role of Bitcoin as an investment and the importance of education in terms of broader adoption of virtual currencies.To read the full interview with Jeffrey Smith visit http://bitcoin.pl/207-rozmowa-z-jeffreyem-smithem-szefem-ds-informatycznych-w-
*Permission was given by CEX.IO to quote from the interview