Makes sense to me. They could be finishing up the testing on the Mini Rigs...if you have a Rig working, chances are all the other products work as well (since it's just a heap of all the other products in one big case). Hopefully in the next few weeks we'll have some definitive evidence.

That would be awesome...do it!

Investing does actually have economic benefits..assuming we're talking long term investments versus day trading the shit out of a stock. Just like here in the community and under our own exchanges, investing allows the community to support various business ventures, which in turn helps to expand and promote not only the business, but bitcoin as well.

I hate to say it, but you're probably right. The reason I went to GLBSE in the first place was not only for it's attractiveness, ease of use (compared to other exchanges), and popularity, but also because you could work on your business / IPO without the red tape found under normal, real world, government regulated exchanges. To bring in the FSA and UK laws means that, sure, there won't be any more scams (or at least harder to spot), but there would be increased fees and a lot more time and BS to wade through.

Makes me wonder if it's a better option to drop $350 and work with MPEx or figure out some feasible way to work with LitecoinGlobal....

You bring up a good point. Ideally I would participate in BFL's trade-in programs for future generations of ASIC devices (they've already hinted at this) in order to keep up with the change in technology.

Aside from generating blocks, mining equipment generates revenue through network transaction fees. If my plan works out, I would seek to maintain my position as one of the top miners, not only now, but in the future as well. This would mean that even though we'll eventually reach the point where each block generates 0 new coins (or fractions close enough to 0) I should theoretically still be able to turn a profit through network transaction fees only. But this is many years away, so it's 100% speculation at this point.



Right on track here. Once everything is rolling, there would be two sets of accounting information. One is done 100% in BTC to show revenue generated by the equipment and my expenses paying back bondholders / Coupon Rates. The other done in USD for tax purposes.


Ah I understand now...and I actually think I mislead you (or any other readers) before when I noted I'd be creating revenue for my company via Bonds. Though this is technically true to begin with, it is far from the 5,000 BTC I estimated for 12 months.

Here's more or less how it would work over 12 months: Out of, say, those "5,000 BTC", 90% (4500) would be generated from mining and converted to USD. The remaining 10% (500) comes from the Bonds at the very beginning to get everything started (initial payments to datacenter, office rent, etc etc). Those 500 coins are currently backed 100% by me, so should anything happen I can cover the Bondholders. This helps to limit liability and avoid issues with the exchange rate. Naturally, this is just a guess as to what I'll need. The numbers I chose where just for an easy example.

Doing this stuff is passion of mine, so I'd hate to see it go insolvent

That would be super cool and fantastically easier to manage from my point of view...or at least organized a bit better.


Easier said than done. Many people have quite a bit of money tied up here, and even though the page states not to worry about their coins there's still quite a bit of uncertainty that has a lot of people second guessing themselves. Historically, if someone says "Don't Panic" it's usually the time when panicking is a good option.

You're exactly right, and I thought about that after my reply but didn't update it. The equipment would be taken at purchased value and probably depreciated at the same rate as normal computer/server hardware.

For the time frame, 12-24 months should be all that's needed. Why come up with 3 years?



Unfortunately I'm not entirely sure I'm following here. Are you referring to the revenue converted from BTC to USD, which would technically need to be converted back to BTC at a later date?

Unfortunately, in my experience, you're right. Whenever something or someone goes 100% quiet it means they're involved with lawyers/lawsuits/courts/etc

Welcome to the club

The best type of account is accurate, not easy accounting 


Couldn't have said it better myself.

If you're new to account, take a look at these example financial sheets to get an idea of what it might look like. Organization is absolutely key in your statements.

Precisely, but the business would be (initially) supported by revenue that I've converted from BTC (so about 5,000BTC over 12 months, just as an estimate for now). So out of that revenue each month comes all of my real-world business expenses, such as equipment insurance, office/datacenter rent, electricity, bandwidth, and anything else I can't think of.
The remainder after all this would be taxed as income at either a Single-Member LLC tax rate (essentially the profit is recorded on my personal tax documents and I'm taxed as such), or I can elect to have it taxed as a Corporation (which is more likely, since as an LLC under $50,000 profit my rate would only be 15%).

The tricky part (which I think you touched on) is noting a the depreciation of the mining equipment in USD when it was purchased in BTC. Other than that, as long as I maintain a clear boundary between the BTC world and the USD world, the accounting should be pretty straightforward.

Of course, this is all based on my experience with Financial and Managerial accounting...I'm going to consult with a CPA when this gets off the ground.

If all went perfectly, the IPO was September 1st (I had everything submitted and paid for during the last week in August). Then Nefario froze all IPOs as they worked on GLBSE, so I reworked everything for October 1st.
In a PM back on Sept. 25th, Nefario noted he would be submitting the contract for review so he could pass the IPO...but no one has heard from him (or ColdHardMetal) since over last week.

I guess at this point it's just "play it by ear"

Pics or it didn't happen


haha +1

Quite right. But there's a difference between "pooping out random numbers on paper" and "backing your estimate with a well thought out analysis consisting of arithmetic and statistics".


Unlikely for first generation ASIC chips. They (meaning all known ASIC companies) low-balled it before to make sure they could all meet their original specs. Turns out, the chips can perform quite a bit better with some tweaking, so everyone adjusted their specs to properly compete with one another.

Because I read the article...but I suppose there is the chance that this man could have taken a life at some point and the FBI is none the wiser

He didn't kill anyone..he broke into the guy's car 22 years ago and stole his wallet...

Lol +1 for Chrome

I'm actually surprised Firefox doesn't have a similar option...and I'd check, but I haven't used FF in over a year.

Sounds like we should head over and post in the "What we've learnt today" [https://bitcointalk.org/index.php?topic=65853.0] section