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1621  Economy / Securities / Re: Weekly loss of N% guaranteed - Enjoy perpetual loss with fixed Mh/s mining turds on: August 09, 2012, 10:55:19 AM
If you have any investment experience in the real world, especially in the fixed income instruments, you have probably noticed how the word "bond" is misused in this forum over and over again.

Bond is a very specific investment instrument. Fancy way to put it is -  bond is a negotiable certificate that acknowledges the indebtedness of the bond issuer to the holder. Other way to say it is: bond is a loan to bond issuer and who ever holds the bond, receives the payment form the issuer. It's like a IOU.
Another important feature of the bond is this: Issuer is obliged to pay interest (the coupon) to use and/or to repay the principal at a later date, termed maturity.
This means, that you do not only receive the regular coupon payments, but at date X, your bonds will be bought back by the issuer at predetermined price X.
 
Information about different types of bonds and notes is readily available all over the internet. I recommend you read it and make sure you understand the basic ideas of bonds and why people invest in bonds.  

Now, typical mining bonds issued via GLBSE are perpetual mining bonds with fixed Mh/s coupon. It is very important to understand, that there is NOTHING fixed about this type of coupon- Especially, when it comes to your earnings. When difficulty goes up, you earn less per Mh/s. When difficulty drops, you earn more per Mh/s.
I call them mining turds, because they are almost like Floating Rate Notes (FRN) aka floaters - hence the name "turd".  
  
Why are bonds good and turds bad?

Bonds are usually good for preserving your capital and earning you a fixed income from dividends. If you think about it, mining turds offer you none of the previously mentioned benefits. At the moment, dividends do not cover the depreciation of your invested capital. Sorry, but this applies to all the mining turds out there.

There have been some exceptions, where turd price has actually gone up temporarily. One of the example is the GIGAMINING. Vps managed to push his turd prices up temporarily. Last month he increased dividends by 10% (110% PPS) for few weeks. Lets be honest, this was just a ruse, to get you all worked up over nothing.  

Did I really make 2.3841% per week?

To understand, what you have actually lost/gained by investing to mining turds, look at the price you paid for you turd and how much have you earned form your dividends. If you sell your turd today, will your loss of of invested capital be offset by the continuously diminishing dividends?  

If one month ago you paid 0.30 for your "bond" and you have earned 0.038 BTC in dividends, did you actually made money?
You say "Yes!", I say "No!"
OK, lets look at the market price. Oops, as of today, your turd is worth only 0.145 BTC! Now, did you make money or did you actually lose ~40% of your investment in one month to "earn" 0.038.
If diff keeps going up or stays where it is now, you are not going to see your principal returned to you any time soon. As you know, turd issuer has no obligation to buy it back from you at the IPO price. How long will it take for a monthly dividend of 0.038 to earn you those 0.155 BTC, to cover the loss?  4 months if diff stays at or below the current level and price is not dropping another 40%. If it diff keeps rising and price keeps dropping, you are almost perpetually screwed.
 

Bonds, I'll or you can invest in


Only mining bonds (not a turd!), that make any sense to invest in, are the ones with a truly fixed or partially fixed coupon. Bonds with floating rate must have a part of the coupon fixed at % from IPO price (par) and a part of the coupon tied to a Y Mh/s or something similar.

"Mh/s only" turds are garbage and burn investors hard earned bitcoins, while buying turd issuer a room full of equipment at 0 risk.
Difficulty and market risks are all left to to you - turd holder.
 
 If you truly believe that difficulty is going to go trough a massive drop, then yes, you have a good chance of getting back the money you paid for the turd. Now, lets not forget, that the income from mining will be halved soon. No more 50 BTC blocks. Can you see, how this affects your income and turd price, dear turd holder?

The bond thing is true it is way overly misused on the GLBSE, when I first discovered the mighty world of Bitcoin and the Glsbe I looked at the company right up for all these so called "Bonds" and they looked more like shares the company reserved the right to buy back then bonds.
1622  Economy / Securities / Re: [GLBSE] YABIF - Low Risk, High Selectivity Investment Fund on: August 09, 2012, 08:30:16 AM
Yet Another Bitcoin Investment Fund

The purpose of this fund is to provide a method for people to securely and easily invest in GLBSE stocks. Our goal is to take as much of the risk out of investing as possible by investing companies that are verified, have plausible business models, and good rates of return. The target rate of this fund is 2.5 percent per week. We aim to have a diversified portfolio with at least 90% capital deployment at any time.

My contract with you the investor.

Net asset value will be disclosed at least once per month. This will be presented as a balance sheet with a breakdown by sector.

There will be no under the table deals. All shares will be issued on the open market with a maximum of a 2% discount to spot price, NAV, or 5 day average.

I will hold a large majority of my own money in this fund. I will also be taking a management fee of 3%. Dividends will be disbursed when no deals are on the market, or when shares are being offered.

No information that could lead to insider trading will be disclosed to anyone. As most of my capital will be in the fund, almost all insider trading risk will be severely limited.

A 67% approval on a motion is necessary to proceed with a wind down of assets. In the event that I can no longer continue as fund manager, assets will be disbursed according to share ownership.

Why Invest with me?

  • Let me do the hard work
  • Focus on safe stocks
  • Transparent Operations
  • Good returns
  • Uncapped Returns
  • Low Fees
  • No off-market share sales

Glade I'm setting a bar for Verification, I am always willing to invest a little in someone count me in for a couple of shares. It just takes a couple shares from everyone to get some thing going!
1623  Economy / Services / Looking for webdesigner on: August 09, 2012, 08:14:31 AM
Looking for web designer with Mysql experience, message me for more info!
1624  Economy / Securities / Re: [GLBSE]BitCoin Mining Investments "Not A Bond" on: August 09, 2012, 12:57:48 AM
No order number yet there is a reason why I will not go into detail yet except, I have been in contact with butterfly labs and there answers are lets just say non conclusive lol. I want to leave the investors with some choice before sinking YOUR money into something that might not have a return till after the new year. This was there response when I asked directly when I could take shipment


Butterfly Labs Inc office@butterflylabs.com



Aug 6 (2 days ago)














to me










Hi Daniel,



It is too early to know how long it will take. Several people are working on them, but we don't know how quickly they will be going out.




Kind regards,

Alicia\BF Labs Inc.

That being said Im just like everyone else in this day in age of a drive thru have it now world, I want it NOW! I even told them Id drive up there and pick them up, and they could still charge me for shipping, still did not change anything lol.
But like I stated before I have a couple more options to lay on the table if Plan A does not work out. I have a feeling there is going to be LOTS of upset customers with Butterfly labs in Oct, and something is telling me that they will release the products as soon as the block rate changes to 25.
I hate to break this to Butterfly labs but Several people is not enough LOL it should be dozens.
IPO comes out On or before Aug 15th Smiley waiting for the next pay check.
1625  Economy / Securities / Re: [GLBSE]BitCoin Mining Investments "Not A Bond" on: August 08, 2012, 08:51:48 PM
What color sock, long or short Jk. Its understandable the internet is hard place to gain trust on.
Thanks for the interest puffin if there is anything I can answer or do for you please let me know!
1626  Economy / Securities / Re: [GLBSE] Bitcoin Racing Syndicate on: August 08, 2012, 12:43:17 AM
I seen a couple dog races in FL while ago its pretty cool stuff. I like the idea, ill buy up a couple shares when I get a chance.
1627  Economy / Service Discussion / Re: Why trust GLBSE? on: August 08, 2012, 12:12:12 AM
Yup its like this why take a peice of the pie and leave the party, when you can take the whole pie and dance the night away!
1628  Economy / Securities / Re: [GLBSE]BitCoin Mining Investments "Not A Bond" on: August 08, 2012, 12:09:30 AM
Looks like a legitimate NC driver's license, based on comparing it to my own.

Your Certificate of Registration was issued in January, which is strange, since your mining business seems to have been started in July or August. Any comment?

 Nice to see another person living in NC I live on the coast myself Smiley. The Registration is good for any business as long as they dont fall unde any ATF, used batteries tires metal recycling or things like that. I was actually going to push vending carts up and down the beach when I applied for it but, the beaches have bans on merchant carts.


As for holding the picture up to my face do you really want to see me that bad, Jk Ill get on that anything to insure potential investors!


Thanks for the Support mc_lovin, let me know if you need the favor returned ever Ill do what I can.

1629  Economy / Economics / Re: Deflation and Bitcoin, the last word on this forum on: August 06, 2012, 10:50:29 PM
I enjoyed this story its a great reed, the centralized currency is going to have to have its own schools. Previous schools can not and will not work on this system.
1630  Economy / Securities / Re: [GLBSE] FUTUREFUND - Making the Future Happen on: August 06, 2012, 10:32:27 PM
I just picked up a couple of these.

Man, if this shares apreciate about 5000% (as we all hope, of course), you're gonna make ONE BITCENTCheesy Will you be able to manage all that sudden wealth?
You never know lol, I Give everyone a little chance not a dump my 401k in chance but a couple of shares chance.
1631  Economy / Securities / Re: [GLBSE] FUTUREFUND - Making the Future Happen on: August 06, 2012, 08:31:08 PM
I just picked up a couple of these.
1632  Economy / Securities / Re: BitCoin Mining Investments on: August 06, 2012, 06:26:39 PM
Got set up with the BBB, Phone # is not correct I sent them the info to change it. There is a investing strategy I just will not put all my cards on the table till its time to call.

http://www.bbb.org/raleigh-durham/business-reviews/online-payments/bitcoin-mining-investments-in-emerald-isle-nc-90224806
1633  Economy / Lending / Re: Bryan Micon's List of BTC Ponzi Schemes that should not be listed as "Lending" on: August 06, 2012, 03:58:31 PM
I enjoyed reading about the OP, when I was looking at the GLBSE I figured some of these had to be ponzi scams
1634  Economy / Securities / Re: BitCoin Mining Investments on: August 06, 2012, 03:55:29 PM
As soon as we take delivery of the equipment. If there is a hold up on the equipment we will have a plan b to generate revenue.
1635  Economy / Securities / Re: BitCoin Mining Investments on: August 06, 2012, 03:14:23 PM
Pretty cheap for the USA 7 cents ish depending on season. They also offer commercial rates, of course you have to be a registered business to get such rates  Cheesy.
1636  Economy / Lending / Re: Looking For a Loan 25 Btc on: August 06, 2012, 02:00:49 PM
Just asking how do you know I'm a native English Speaker? Just curious
1637  Economy / Securities / Re: BitCoin Mining Investments on: August 06, 2012, 03:36:03 AM
Well Like it says on the site We aim to be 100% transparent to everyone, so if you have questions concerns or anything feel free to
1638  Economy / Lending / Re: Looking For a Loan 25 Btc on: August 06, 2012, 01:59:11 AM
Yea I understand that, but I want to launch my IPO and do a couple of things to help it.
1639  Economy / Securities / Re: BitCoin Mining Investments on: August 06, 2012, 01:54:46 AM
Here you go Had to block out my address, no offence just dont want no creeps at my door.




I do have previous work in farms I worked at my university's rendering farm. It was not huge but it was decent.
1640  Bitcoin / Mining speculation / Re: Mining with 1 TH/s rigs on: August 06, 2012, 01:25:45 AM
I am hoping to purchase some of those aswell in the future let them know how they turn out for you!
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