Bitcoin Forum

This is a model where I take all the risk. As my vendor stated, I can do whatever I want with the storage as long as he doesn't have to do anything.

Goals:
Replace Bitcoin with vouchers for service that paypal can't reject.
Provide a quick way for people to get bitcoins and litecoins without the usual hassle.
Provide a way for bitcoin businesses to have mass quantities of funding and be able to ride the panic.

I recently purchased 6 months of VPS hosting service. I am not using any of this service. I do have a separate purchase with this vendor.
Instead of having the service provisioned I declared service shares at 100 shares per BTC cost at full retail price. I did get a discount for purchasing 6 months at once and not actually having it provisioned.

To purchase service with these shares you can submit them to me as 114 shares for each month. Since the goal is not to increase my vendor's exposure, once you purchase service those shares are considered consumed and no longer exist (barring issues with the service). This would not be the case if you were purchasing products rather than service.

6 months of service @ 1.14 BTC per month = 6.84
100 shares per BTC * 6.84 = 684 shares
5% fee both ways in trades
initial profit potential = 6.84 / (6.84 - my discount)

I am selling these shares for Bitcoins, Litecoins, and PPUSD.
I will also repurchase these shares for BTC, LTC, and PPUSD.

At the time of purchase: (not including 5% fee)
USD/BTC = 4.39
USD/LTC = .0083
BTC/LTC = .00153
BTC/share = .01
LTC/share = 6.54

The price of one month of shares is dependent upon the current USD price of Bitcoins.

While I will be taking in my 5% and my discount, I will also be purchasing service such that every outstanding share is matched with service.

I take the risk that no one will want to buy these shares. However, liquidity is a joke at this time. Paxum cutting off bitcoin caused the usual panic.

At the very least I'll prove that what the Federal Reserve does is not rocket science.

So these shares are "backed" by some unit of disk storage at an ISP?

Service not storage - once you redeem a month from the vendor (through me) they are consumed.

But I will trade forward and back to provide liquidity to the community.

And I will never redeem more shares than are secured. The vendor takes no risk.

I will consider storage, bandwidth, and cpu cycles in the future, but for now it's service based.

Also if this works I will work on selling permashares - they will be consumed, but if someone buys 2 year's worth I'll probably be willing to pay their service almost indefinitely.

As of 02-20-2012:
684 shares available
684 shares secured for service
4.39    USD/BTC
.00153 BTC/LTC
1.14    BTC/month

x = 4.39 / 4.39
y = .00153 / .00153
p = x*sqrt(y) = 1
q = y*sqrt(x) = 1

0.01 * p         BTC/SHA
6.54 * q         LTC/SHA
114 / q          shares for a month of service

LTC per share base price = LTC/BTC = 1/.00153 * BTC/SHA = 6.54
Monthly shares base price = Service quote / BTC/SHA = 114

As of 02-23-2012
684 shares available
684 shares secured for service
4.86    USD/BTC
.00155 BTC/LTC
1.05    BTC/month

x = 4.86 / 4.39 = 1.107
y = .00155 / .00153 = 1.013
p = 1.107 * 1.006 = 1.114
q = 1.013 * 1.052 = 1.065

0.01 * p = .01114 BTC / SHA
7.19 * q = 7.66 LTC / SHA
90 / q = 85 shares per month

LTC per share base price = LTC/BTC = 1/.00155 * BTC/SHA = 7.19
Monthly shares base price = Service quote / BTC/SHA = 90

I will automate this soon.

As of 02-24-2012
684 shares available
684 shares secured for service
4.99    USD/BTC
.00153 BTC/LTC
1.05    BTC/month

x = 4.99 / 4.39 = 1.136
y = .00153 / .00153 = 1
p = 1.136 * 1 = 1.136
q = 1 * 1.065 = 1.065

0.01 * p = .01136 BTC / SHA
7.42 * q = 7.90 LTC / SHA
88 / q = 83 shares per month

LTC per share base price = LTC/BTC = 1/.00153 * BTC/SHA = 7.42
Monthly shares base price = Service quote / BTC/SHA = 88

Triangle trade... nice idea.  So are you offering this on eBay yet or what?

Yeah, unfortunately I've decided to redo this.