Bitcoin Forum

This would be a mining company that doesnt pay dividends but instead all the coins it mines are pumped back into growing the mining cluster. In  some ways this is similar to an investment fund that simply reinvests all the income it earns.

Where would such a company need to be located to allow for such massive growth ?

we almost tried this, BTCSYN. 80% growth.  and it fucked up everything. who knows who is the theft.

What I love most in bitcoin economy is that the old tradition comes back: the owners of equity get the dividend, and make a decision by themselves whether reinvest or not,  every time when they get the dividend.

Bitcoin economy has no tax on the dividend income, so pay dividend don't hurt the economy as a whole. it make it easier to stop control the exposure on some irresponsible and potentially dishonest mining farm manager. The capital will be follow more efficiently.

You are right that one never turned out good at all.

You have 10 million shares outstanding. I dont think thats a good idea but you are correct about the same business model.

How much room for expansion do you have on site ?

I have been thinking a lot about a 90% growth company. I am not doing it myself because GPU mining can be a pain. However, if ASICs prove to be easy to use, I may float the idea as I get .02/kwh electrical cost with a lot of additional areas for expansion.

We could also petition a current company to decrease dividends. The biggest hindrance is fraud IMHO. How do you keep the operator honest?

Transparency and public accounting ? ofc that does not protect against theft, but then again nothing protects against theft, not even with laws in place, resent Facebook numbers prove that if you ask me ....

As to 100% question ? I can't see this go well, maybe for short time period but in long run you will lose interest. 50/50 would work best in my eye's with extra shares being issued now and then to boost growth.

Well, retained dividends are better than issuing shares because of the fee structure of GLBSE.

I like 90% with public accounting because it provides some trickle of income with high growth. I wouldn't mind high growth just so long as I had trust. I don't believe my investors wound mind either as long as I disclosed the issue.

RSM - https://bitcointalk.org/index.php?topic=63257.0 - were saving 100% of mining profits towards purchasing ASIC's.  Now we have the funds we will be saving between 90% - 50% of mining profits post ASIC delivery towards more ASIC's.  I could make it saving 100% of profits towards new hardware if there was enough interest.

90% or 80% is an acceptable number too. Public accounting is essential.

It might be good if a third party could also audit the business.