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Title: What is this pirate 7% compounded i see? Post by: WiseOldOwl on June 19, 2012, 10:16:30 PM Like i mentioned in another topic, ive been on hiatus. I came back to see a reference to a pirate and a 7% weekly compounded interest rate ???
Any info on this would be greatly appreciated, Thx!! Title: Re: What is this pirate 7% compounded i see? Post by: mcorlett on June 19, 2012, 10:17:19 PM https://bitcointalk.org/index.php?topic=50822.0
Read every single page. Title: Re: What is this pirate 7% compounded i see? Post by: Raoul Duke on June 19, 2012, 10:19:43 PM You're in for surprise lol
Title: Re: What is this pirate 7% compounded i see? Post by: nimda on June 20, 2012, 02:57:48 AM He pretty much controls the bitcoin economy; if he defaulted, shit would hit the fan.
Title: Re: What is this pirate 7% compounded i see? Post by: ErebusBat on June 20, 2012, 10:05:58 PM He pretty much controls the bitcoin economy; if he defaulted, shit would hit the fan. The central bank of bitcoin :) Title: Re: What is this pirate 7% compounded i see? Post by: Gladamas on June 20, 2012, 10:17:23 PM People not only invest directly with him, but also with passthroughs such as GLBSE assets: FOO.PPPPT (https://glbse.com/asset/view/FOO.PPPPT) (0.07 BTC/week/share) or TYGRR.BOND-P (https://glbse.com/asset/view/TYGRR.BOND-P) (0.068 BTC/week/share). Some also go through a passthrough mentioned on the Who Pays What? (https://bitcointalk.org/index.php?topic=81542.0) thread.
Title: Re: What is this pirate 7% compounded i see? Post by: Electricbees on June 20, 2012, 10:41:27 PM Like i mentioned in another topic, ive been on hiatus. I came back to see a reference to a pirate and a 7% weekly compounded interest rate ??? Any info on this would be greatly appreciated, Thx!! Theories about this abund. Most likely is pirate launders for SR And the entire BS&T situation to be scary, if not downright frightening. I still invest with pirate, unfortunately. I'm more greedy than skeptical. Title: Re: What is this pirate 7% compounded i see? Post by: OgNasty on June 20, 2012, 11:13:58 PM I'm more greedy than skeptical. Also with a bit of an honest streak. Title: Re: What is this pirate 7% compounded i see? Post by: nimda on June 20, 2012, 11:40:04 PM Everyone recognizes that compounding 1%/day interest doesn't scale in a currency with a max of 21 Million. Pirate's investors (disclosure: I am one of them) are hoping for one of two scenarios:
1. Pirate runs off with the money (defaults), but this happens more than 100 days after the initial investment, or at least close enough that there's not much of a loss 2. Pirate stops accepting BTC, or he begins to return it to investors. The worst-case scenario, of course, is: 3. You invest with him today, he defaults tomorrow. #3 would have a huge impact on the currency itself and the community as a whole. Title: Re: What is this pirate 7% compounded i see? Post by: Gladamas on June 21, 2012, 01:04:20 AM There was another theory proposed by waltmarkers on the BS&T thread that many people liked:
Isn't it clear what he does? He's said as much on other threads. People lend him bitcoins that he then sells for hard currency locally at a (significant) markup. Whoever buys those coins more than likely sends them to a third party, who converts them back to fiat (possibly another fiat). Pirate moves his currency back into bitcoins. More than likely Pirate is never in fiat more than a day or two, leaving him minimally exposed to bitcoin / fiat pair volatility risk. Pirate's customer has a steady need to send currency through bitcoins on a regular basis, for payment for some ongoing good or service. These customers are paying a significant premium for this service, likely 10% or more. That's why Pirate can afford to pay 7 points per week. As long as pirate's customers' business grows (or they move more bitcoins through him) he can afford to keep paying 7% indefinitely. It is likely that at some point he may have to close to new deposits (as he has done in the past). Bitcoin is a easy way to move large amounts of currency without the use of banks or walking large amounts of cash through airports. Hell, it's better than diamonds or art. Sure is more liquid. He's doing exactly what he says he does, arbitrage with a very short term loan (The loan is as fast as he can turn hard currency to bitcoin). |