With the bond offering 4MH/s and the average price per 1MH/s on the market of 25-30, the price should be around 1.0-1.2. 0.80 was a bargain  Back to your bargain price! GET ON IT!!  |
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Hi Miners, BitcoinOPX.com has recently opened and I wanted to make sure everyone knows of a risk free way to earn 7%, for example, monthly returns on your coins. This is possible because of the value options provide asset holders who are most likely planning to sell. Below is a great example provided by forum user waltmarkers in a speculation thread: Actually, I disagree - this could be the perfect vehicle for miners and other bitcoin holders. Covered calls in the money at inception are a great way for the bitcoin owner to make a fixed short term income based on their long term position.
For example.
I want to "lend" 1000 coins.
Current price is 5.75.
I issue a 1000 call at a strike price of 5.50 for 0.635 per coin or a $635 contract price for 28 days from now.
If bitcoin goes up past 6.135, I lose my coins, but I get $5500 plus the contract price of $635. Basically I locked in a sell price of $6.15 (7% monthly return)
If bitcoin is between 5.50 and 6.135, and the contract is exercised, I still get the $6,135. I effective sold at $6.15. (7% monthly return)
If bitcoin goes below 5.50, contract is not exercised. I keep my 1000 coins plus I now have an extra $635 I can pocket or buy more coins with.
We don't need one market maker, we need a group of miners to use covered calls.
BTW - why would someone want to buy a call already in the money? 1. They would like to speculate the coins are going up past the 6.15 with out buying a single coin. 2. They are selling coins lent to them to convert to fiat for a purchase, and want to ensure they can pay their loan in bitcoin later.
This has been your friendly neighborhood covered call lesson.
@waltmarkers: I completely agree. Thanks for that textbook example of the advantage of writing covered calls as applied to Bitcoin. I would add a 3rd reason for someone wanting to buy a call already in the money: As I noted above options can provide leverage. If a person believes the price is heading to $7.00 for example and has $635 they can either buy the option you mentioned or buy bitcoins directly. If they buy bitcoins directly at the current price of $5.75 they can afford 110 bitcoins. Multiplying that by the difference gives 110 x $1.25 = $138.00 is the maximum they could profit from that price move. However, buying your option at $635 yields 1000 x 1.50 = $1500, then subtracting the $635 = $865 of profit they could make. Quite a difference. More risky, of course, but no comparison in terms of profit potential. Perhaps I should be explaining this to the miners...  The example uses 1000 coins but BitcoinOPX allows creating options of sizes 10 or 100 as well. The 7% return would apply in any case. I'm happy to answer any questions. Is there any volume? I see no bids or asks on any contract..... |
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I will offer $4,200 for rigs 1-4
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Cards are still up for grabs.....Very good ROI with the price of BTC pushing $6.00!
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All reference design, work perfectly, never run higher than 775 Mhz. I have been acquiring dozens of BFL singles, and am slowly moving away from GPU's.
Prefer to sell together to simplify my life.
I am looking for 255 BTC, which includes 2-3 day shipping.
I offer 1 rev3 BFL single and 60 BTC for 4x5970. Intriguing...... Rev3 + 90 BTC and you have a deal Meet me in the middle? 1 BFL rev 3 single and 75 BTC. I really need more hash power then I do less electricity bill... and this leaves me with 4 Singles and a bundle of 7970s still. Let me think it over.....I will get back to you this evening. I am off to an appointment at the moment. |
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This is great to hear. Off to home depot after work. Box fans for 15 bucks!
lol, it must be great to have cheap power. Don't those things use like 200 watts each? I have no clue.....but that seems really high..... |
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Ambient temp only matters if your cards are overheating with their fans running at 100% and decent airflow over them.
My rigs are set up in a back bedroom next to the windows with a box fan pulling air across the cards and exhausting it outside. Living in central Florida this time of year, ambient in that room exceeds 90F routinely during the day until the rain hits.
Even during the peak of the days heat, my fans don't exceed 70%, and GPU temp never exceeds 75C.
I will never use the A/C in that room, the two box fans eat up about 1A, the A/C eats up about 7A.
This is great to hear. Off to home depot after work. Box fans for 15 bucks! |
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All reference design, work perfectly, never run higher than 775 Mhz. I have been acquiring dozens of BFL singles, and am slowly moving away from GPU's.
Prefer to sell together to simplify my life.
I am looking for 255 BTC, which includes 2-3 day shipping.
I offer 1 rev3 BFL single and 60 BTC for 4x5970. Intriguing...... Rev3 + 90 BTC and you have a deal |
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All reference design, work perfectly, never run higher than 775 Mhz. I have been acquiring dozens of BFL singles, and am slowly moving away from GPU's.
Prefer to sell together to simplify my life.
I am looking for 220 BTC, which includes 2-3 day shipping.
Also entertaining offers on 2x 7970's.....3 months old.
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Thanks for this.....it is helpful. I am shooting for 80-85.
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Hey all,
For you experienced farm operators, I have a pretty simple question:
How low do you keep the ambient temperature in order to feel comfortable that your farm will run smoothly? I suppose it is OK to allow the ambient to be 90-100 degrees even, as that is still considerably less than a GPU running at 80 Celcius (about 175 F). I don't think this is ideal, as the fans would have to be screaming, but theoretically it would still cool the GPU.
Can you guys add some thoughts on this? What is optimal in your mind in terms of striking a balance between efficient cooling, and just throwing money away on excess AC?
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At $5.95 - doubtful a CPU miner cranks up. At $15.95 - maybe ROFL.....I don't think CPU miners are EVER coming back. The difficulty would skyrocket at a price of 15.95! |
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When is next dividend?
The dividends are paid on the first of each month. So, the next payment will be July 1st. Up until now the dividends were paid to the angel investors directly, and not through GLBSE. The July 1st dividend will be the first to be paid through the GLBSE platform. thanks! When are you going to verify on GLBSE, also, why aren't you in #bitcoin-assets on Freenode? I sent my DL picture and address info to GLBSE.....nothing ever came of it. I should pobably follow up.....I have just been busy. |
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When is next dividend?
The dividends are paid on the first of each month. So, the next payment will be July 1st. Up until now the dividends were paid to the angel investors directly, and not through GLBSE. The July 1st dividend will be the first to be paid through the GLBSE platform. thanks! |
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I am still having issues.....I recently tried to get 4x 7970 working, but for whatever reason the 4th GPU is not getting recognized.
Anyone with experience on this issue that wants to help would be greatly appreciated!
I'll work on this for you right now and document the steps I'm going to take on a new rig. I just bought 8 7970s and will be running them on Win7x64. This would be fantastic......which 7970 did you buy? |
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I am still having issues.....I recently tried to get 4x 7970 working, but for whatever reason the 4th GPU is not getting recognized.
Anyone with experience on this issue that wants to help would be greatly appreciated!
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Began moving into our newest location over the weekend......got an additional 8 GH/s installed so far. Running some stability tests, and it will be up and down for a few days until we can dial it all in.
We are quite pleased with the space thusfar, and think it will be a great long-term solution to our expansion contraints.
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I at least hope it wont affect much on the price. Bought in in this bon @ 1.47 so another drop would really hurt my ROI.  What type of financial analysis did you do to determine that 1.47 BTC was a good deal? By my numbers I think 1.3 BTC might even be significantly overvalued. Kind of interesting to see how the market works, isn't it? It is a great deal for Giga, that's for sure. Buy hashes at $.60/MH (mini-rig and GPU) and sell bonds against it at $1.00-1.50/MH. Makes for one hell of a profit margin. Easy to finance expansion this way as well. |
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OK - so you are paying a defined coupon for now and NOT 100% PPS like the other bonds.
The talk about PPS in the OP threw me for a loop.
Thanks!
Exactly.......the plan is to move to a 100% passthrough in 60-90 days. It will not be completely a PPS, as there will be some expenses for electricity. However, all net income will be paid out to shareholders. |
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