Bitcoin Forum

Cooperative investing between small investors is better then investing on your own

Let's say you have:

10 usd can you invest it in something to generate real profit ?   No
10000 usd can you invest it in something to generate real profit ? Depends on the margin of the business ,if you get 5% per year it's less then inflation so you lose money,if you get 20% per year good margin better then inflation

Now let's say i notice there is a demand for fertilizers ,and most people notice that also ... but i got only 500 usd to invest, another guy has 1500 usd ,another guy 10000 usd  and so on ...

How can we pool the money together to build a fertilizers plant ,if x is in country a ,y in country b and so on and best place for investment is in country c do to fact country c has gas ?

Is there a website / app that allows investors to pool money like that ? ( no stock market / to create new businesses i mean )

I don't think so. Because purely doing it online — how do you know that a certain person wouldn't just rip you off? Fraud would be really really rampant.

If you really want to do something like this, pool money with friends or at least with people you actually know personally.

Cooperative investment in the case of the crypto is completely superfluous. You can invest at least $10, at least $500 - it doesn't matter. Bitcoin divides very well, so if you don't have enough money to buy a whole bitcoin, you can easily buy part of it: 0,1-0,000001 BTC. This way you will be your own controller and manager of your investments. It will also save you from the problem of trust in your partners and controversial situations that will definitely arise during cooperative investment.

That's a good idea but I don't think that it will work in the manner that you're expecting. Although if there's a website that really works this way, I guess there's no difference from those P2P loaning platforms. The idea of having pooled funds and letting them be borrowed by anyone who's into a business that needs more funds.

Not if you do it via law firm for example:
https://cravath.com
https://skadden.com
https://sullcrom.com
https://lw.com
https://kirkland.com
https://vbb.com
https://hoganlovells.com


Lets say we pool 100.000 people and we send the money direct to the law firm ,the law firm sets up the company and we get the stocks in exchange...the board members will be formed by the ones that have most stocks ...etc

Instead of investing in current companies we create new ones ...

Example: I got a tip that in Sweden there is a big source of Potash , i propose we build a mining company there....

I make proposal , other subscribe to proposal ,we explore and find as much information as possible, and if good investment ,we pool together.

Step 1: Make proposal
Step 2: Research and explore
Step 3: Analyse data / find costs
Step 4: Create business plan
Step 5: Pledge to pool if you like business ,pay law firm fee
Step 6: Hire big law firm to collect the money ,deposit money to law firm
Step 7: Set up company / law firm sends stocks
Step 8: Board members will take over company management
Step 9: You wait for dividend or for company to become listed ...

If you know the people you are going to invest with, then go for it. But if you don't know him well, it's better to forget about it because it can get you scammed. After all, when it comes to money, it will attract people to be greedy. Even people you already know well can fool you easily. More you invest with your own money and do not invite other people you do not know to avoid cases of fraud.

Do you think this kind of investment will really work? How can you be so sure if the guy who handle all of the money will not rip you off? Remember that even your relatives can  fool you when you talk about money so how much more the random person online? Just think about this and better invest on your own rather than thinking about those cooperative which is so risky in online world.

You should try pool staking if talking from cryptocurrency perspective. Find a coin that allows staking and then find a staking pool to invest in. That's a perfect example of cooperative investment.

If you are looking to invest in startups, there are couple of programs available in my country. But not sure if they allow foreign investors or not. Check for WINT in Google. But such investments are quite risky, I must say! You can earn as much as 25% return if you choose right but you can also loose all your investment if you choose wrong.

Well thats the point no investor will touch the money a big law firm will collect it or a big investment bank in a escrow account ...
https://cravath.com
https://skadden.com
https://sullcrom.com
https://lw.com
https://kirkland.com
https://vbb.com
https://hoganlovells.com

This is how stocks work, as you buy part of them, including funds. For example, in the real estate sector, there are REIT funds and other ideas.
In decentralized systems and platforms there are pols where you accumulate coins and get a return.

As for Ollanin's picture, I think that trust is the biggest problem in such investments, but tokenization may solve these matters.
Therefore, if you want to do this centrally, there are many third parties that will receive money from you together and will be responsible for managing and investing it.
As for decentralization, there are some decentralized protocols that can be used.

You can't do it via crypto this way how is going to pay taxes to gov etc ,where is the proof company payed dividends  ?

Let's say 100.000 small investors pool together $1.000.000

Investor 1 in USA
Investor 2 in UK
Investor 3 in Germany
Investor 4 in France

Example: company needs to be formed in Sweden

Another issue: Investor 2 is not allowed to hold stocks in Sweden do to local legislation ...and so on

Company has to pay investors dividends ,company needs papers etc it can't do it via crypto ,as in court it has to prove it paid dividents etc

It's a f...king birocratic nightmare ...

This has been something that I suggested for a very long time in my nation. I have tried to do something like this for real estate, because buying a land, and then building a building on top of it costs about 1 million dollars in my nation, and you could build one big apartment with 16 flats in it, which costs about 300k each, in that case you could divide it to 16 and each person would spend about 60k give or take, and would have a house worth 300k.

Then they could repeat that as much as they want, you could literally do it 5 more times if you do it just one time. But, unfortunately people are never trusting others and the people who will be leading that cooperative.

This is nonsense really, but I guess it can depend on what country your in and the availability of investing tools / brokers in your country. You jump from having $10 to invest in one scenario, which apparently is nothing, to having $500 in the next scenario which means you have a sizable amount to start investing? What sort of weird logic you've used. Nobody should expect 20% per year returns when the stock market average is around 8%, the only way you'll get such high returns is through years of practice and learning how to pick investments by yourself, rather than relying on any kind of pooled money which is open to all sorts of additional risks. One thing that you do need to learn is consistency and sensible reasoning skills.

Trust issues would be the main problem for this one  which this is something that cant really be avoided considering that there are lots of scammers and frauds online
where they do make out some sweet talks about investment and returns or something in related then once they had accumulated that much then this is where crime
do starts.Thats why it cant really be possible on having that pooling of funds for the sake of this cooperative which cant be possibly done online
unless if you do know each member of it on personal basis.

Even if you know them personally there is no chance that you are going to gain profits 100% which means it would not only mean that you lost your money but your relationship would also be in trouble as well at the same time making decisions are harder since people won't agree to one thing that easily therefore I think the only way to do it would be to invest in shares which are much similar to what you are saying, it's basically something that won't rip you off themselves but their shares can crash as well which they do not have any hold of. This is very similar to investing in things like a new crypto in the market as well, you can always check the Altcoins section and learn more about it, they are always looking for new investors to kick start their projects.

Combine business or partnership rarely survive even those that are physical because of insincerity among partners, it is short lived. What you are talking of is online partnership or combine business that is done online. This is very risky, you don't know the real mind of your partner who stays countries far from you. This is going to be difficult to execute when you have partner A, B, C etc staying miles away from one another. Don't think of such business online you can gather your capital for a sole business of your own where you can manage it and employ more hands that you will pay salary.

Partnerships are good to boost your “volumetric” investment but when it comes to profits it will get shared equally and very much equals to what you would earn in individual investment. The only positive thing is it’s little extra sometimes and you share the risks of investment equally. For example, mutual funds investment. Brokers pull in huge number of investors, use their money to invest into share market and returns the x% at the maturity.

However, if you going to pull the job by yourself then make sure you have proper agreements, equal shares and everything handy so that you won’t end up into trouble at the end of story.

In the organized sector mutual funds are the only place where you can pool money in this way, otherwise all such mutual investment schemes have ended in scam only. Bitconnect was one such scheme however it ended in a great scam only. There have been many more such instances i feel unorganised market aren't really worth trusting for this as someone would eventually run away with the money.

Even if there was such a website I don't think it is a reasonable thing to do. It is already difficult to have a genuine investment and then doing it with complete strangers online is even more dangerous. Besides, is the website will be in charge of making the investment on behalf of the partners and split the profit amongst them as well!

Their must be pure and clean transference between the business man. Or else it won’t work in a business, Cooperatives must include the transference among the users at all the sense. So don’t panic at thee investments. Small investors should help each other’s by the mean of transference among the investors. Profit should be shared among them.

When doing something like that I think it is better to do so through the traditional channels, so you should you create a company and then the shares should be divided among the investors depending on the amount of money and other assets they are giving to the company, what you are proposing is simply too complex and while it could be done the nature of cryptocurrencies could allow one of those investors to eventually run away with everything if you are not careful, so when you need to pool your resources like that I think it is better that you look for alternatives outside this market.

There was a guy in my US state who claimed to have bought a $5 pack of carrot seeds, which he claims he grew $200 of carrots he sold at market, for a 40x return on investment.

An artist might buy a $5 pack of crayons or pencils which they use to illustrate a masterpiece they sell on ebay for more than $5.

It is possible to download free music creation software which can be used to make music which is worth something on itunes or spotify.

There are cases where investments and businesses can be founded on investments of $10 or less.

Those might be the best options to focus on for most. As it tends to encourage people to focus on the basic fundamentals which are most important.

Of course it is difficult if we only have a small capital, there will be many restrictions such as the minimum investment that must be met, and I think the best thing when we still have small capital is to invest in cryptocurrencies, even with $50 or less we can invest and can use it to invest. trading or staking if we aim for the long term.

I agree that combined would make a problem if we are talking about 50-50% partnership. However if we are talking about 5% ownership by 20 people then it becomes a big enough business that "not working" would be a difficult situation. Imagine the scenario as people who are taking such a small ownership that you could replace that person by a board if there is a problem.

Make it even 1% ownership by 100 people, at that point even 1 million dollar investment becomes 10k for each person and that would be not a bad deal. I personally feel like this type of business would work a lot better than anything that 2 people does with half partnership.

His idea is a great corporative idea that is workable but the problem is trust, especially as he mentioned investors across the country. The reality is that we are operating a trustless economy. If this idea can be implement in a blockchain that would be nice. Else an escrow system be involved. But in whatever way it is operated, it needs likes mind and it will be a huge success because we all know the power of crowd funding.

Yeah, there are lots of good ideas and proposals about some investment or something like this but the main issue would be trust.You wont be easily
getting any support even if the idea mentioned or proposed was great and with having lots of scams and frauds in the market then you cant
really blame out people on always having the doubts and hesitance on shelling out some  funds into something.

Easy to say about having more money but considerations about making investment and diversification then it isnt really simple on the first place.

The presence of cryptocurrencies gives a good option because with only $ 100 even less we can buy bitcoin or altcoins, everything does not need a long process like investment in stocks, mutual funds or deposits that have to fill in forms with complete data, we only need less than 5 minutes to save Assets in a safe wallet and this is a new era of the investment system.

There are lot of companies and brokerage services let you to invest whatever capital you have but I sm not sure whether they will let you to invest in the stocks you want but there are services which picks best and invest so this isn't really a new idea and also investing 100 os same as investing 10000 dollars because at the end of the day we talk about returns in percentage if any investment says if you invest big the returns will be more then its more likely scam so be aware.

It does not seem to be good idea to pool invest with unknown investors. In the era where digital fraud is at its peak I barely doubt any one cohoe succeed in this process. I am not sure how many of you have heard this but there is process called as Chit Funding which is ran by group of people for particular tenure and particular amount of money. So each month chit is taken out and whoever gets the name will have the money and it would be collected from the group members and thus that guy can use it for his purpose. Process continues until the end of last month. This is not investment model but collective power of investing money so that everyone can use it.

I can only tell you what i know and what we have to do in point in time. Investment that you invest with companies do come with alot of complications and trouble from the company. If you want to enjoy investment of cryptocurrency put your hands together and invest personally, hoping for company investment in cryptocurrency, some times it will end up with scam and you lose your cryptocurrency investment, before you can see a cryptocurrency investment now that is legit is very deadly and i don't the fuck companies

The only ones you could really trust up is only yourself when it comes to investment.Dont really make yourself easily get hooked nor get convinced by any recommendations or some sort because it would really just might
be ending up on getting fucked or losses and make out some regrets just because someone had suggested it and you arent totally sure on the action you had made.
Cooperative kind of investment or entrusting up funds on a single person or company just to make some investment or proposals then i wont really be touching up something like this.
Just on what been said above that the main issue of these things is trust where everybody cant just easily trust people.

While this is a new era of investing still there isn't anything wrong going traditional for once. Investment this days hardly add value to humans which is why many veteran investors are against it. Today it's all about how much the investors can make without considering how impactive this investment can be to humanity. The investment the OP just stated isn't a bad one but for a company either through website or app to pull that off especially as the OP is asking based on the investment been global, it would be very hard to operate.

The closest I have seen to that kind of investment was when I downloaded an app for investment few years back that was only available to citizens of my country. The app was focus on raising funds for agricultural business and as a return you get percentage of the profit realized by the business you funded. The app has died now though as a result of people not getting enough returns of investment and better investment vehicle coming out like cryptocurency etc.

Aren't those just investments funds? I know what you are getting at, but a cooperative smells too much like communism and you know how laser-eyed when Lambo investors hate communism :) I am completely on board with the idea, however, for it to remain small and personal, it should be really done without a third party, but by those investors approaching each other and negotiating their own terms of investing and cooperation. Would like to see something like that honestly.

This is quite true. I mean if you are expecting a news for your currency to go up, then you have invested into the wrong thing. There shouldn't be anyone else that helps you, because everyone will try to get what they have, and nothing more.

So if we all got together, there will be some people willing to wait longer, and some people will just say "screw everyone else, I want profit!" and ruin the plan. That’s how the pump and dump works as well, some people make a little profit and get out right away, blocking everyone else to make more profit, and they just end up with small profit that caused everyone to lose. Hence, why this idea would never work at all.

On paper this seems like an extremely good idea, but it is built in the concept of trust, which is easily broken with money. Also, if a website exists to cater this investment-pooling idea, they would certainly take a cut from your profits so that's another factor that should be taken into consideration. Basically, what you're looking for is a bank that uses other people's pooled money in order to invest into things, and the profits are divided amongst the investors with the bank taking the largest portion of the cut.

Cooperative investment between small investors is a good idea in theory, but in practice the implementation of the idea is very difficult, because the first problem you will encounter is trust, how can you trust people you do not know on the Internet, there are many investment projects that appeared on the Internet carrying ideas similar to these idea, they collect money from people and then defraud them.
The idea can be applied in one case only if a number of people who know each other and trust each other come together with great confidence. In this case, the idea may succeed.