Bitcoin Forum

Hello all, I've been watching the forums and GLBSE exchange for some time and want to ask few questions. I own some considerably big mining rigs and considerable amount of money held in it. However lately I had some financial problems so first I thought of selling part of it. Then I came across GLBSE which could help me to solve the problem: I could get some money for shares sold and also keep doing what I like most.

I'd like to ask a few questions here before starting anything serious:

* There are already quite a few Mining "companies" running on GLBSE, would there be even a place and interest for new one?
* How does the verification procedure go? I don't want my ID scan and other details floating over the internet.
* Is it safe? Well, I guess it is, there wouldn't be so many listings if it weren't. Right?

Thanks.

Well nothing is 100%. And GLBSE has been in the bussiness for quiet some time.

Check here its owner speaking at 2012 bitcoin conference: http://www.youtube.com/watch?v=L4iPCpmv678

depends on how much capital you're interested in. Basically what you want to do is use the mining rig as collateral for a loan. You can create a security for such a thing on GLBSE, but GLBSE is adjusting their policies right now. But as long as you can provide proper identification and clear terms for payment (and what happens when you don't pay) you should be fine. It may be a bit expensive to do microloans on GLBSE. The setup fee is 8-15 BTC. But maybe Nefario may be interested in setup up a category for this kind of security with lower fees?

Answer to 2: Nobody can know whether the ID you submit is yours or not :)

What is your current feeling regarding running your own mining rig, buying and holding BTC for future appreciation, and buying shares of mining companies on GLBSE? I ran the numbers once and it seemed that buying shares was a good idea, but the more I looked into it, the more I was sketched out by how low-rent some of the mining companies were. I figured I'd have  abetter show  just doing the mining myself... We'll see how it goes. I like the concept of a distributed monetary network, anyway.

All of the already running mining companies on glbse have not been profitable for investors so far - and will most probably never be. They claim to sell bonds on their mining activities. Problem is, they will never buy them back. At IPO the bond issuer receives your bitcoins and buys mining equipment with it. In exchange the issuer pays you (usually) weekly dividends of about 0.1 % - 3 %, which at first sight is pretty amazing. After IPO the bonds (shares, whatever) are publicly traded. However, a sane person would only buy them if the expexted dividends to be received would be larger than the share price. They are not! And as the issuer has no obligation to buy the bonds back from you, your initial investment becomes worthless as mining rewards decrease (which they do).

The upside of this is, that you can lose your money even easier: Just give me your Bitcoins and I will pay you decrasing dividends per week untill you will have half of your money back after a year or so.

Does anyone know real investment opportunities on glbse?

Look for mining operations which involve reinvestment. BTC-MINING will be shareholder owned (equipment included, shareholder owned) I have a little money with it and will be adding more. i think its 50% payout 40% reinvestment and 10% fees.

You're right, there are a ton of mining companies out there. Most likely, few will invest unless you bring something worthwhile to the table. One company I saw invested 50% of earning for rapid growth, NASTY is first in line for BFL ASIC, etc

GLBSE is regarded as safe, and they plan on becoming an actual corporate entity soon.

I feel better with real entrepreneurial endeavors like ASICMINER. What do you think about that? Anyway I had a look at BTC-MINING. That's the only mining bond with positve ROI I have seen so far (if you project dividend payments, assuming there will be no disruptions like half btc mining reward, asic go-to-market etc.. ). But what about that "loan to bitbond from btc-mining"? following my analysis, bitbond has no positive roi and seems to be a pretty bad choice.

 Please dont list on glbse to finance your debts.

It would be no small IPO, I have over $50k held in the mining equipment right now. I guess that 15 BTC fee does not matter.


Why not? It is actually how business work - you borrow so you can grow.