Also if any one's interested i whipped up a basic spreadsheet for keeping track of an investment, just change the white boxes, and file > save to http://goo.gl/QOKLFedit: might need that link haha thanks If you buy pass-through products on GLBSE, you need to be aware that the weekly paying ones (FOO.PPPP...PPPPPT, TYGRR.BOND-P) do cost more than 1 BTC per BTC deposited and are atomic to ~1 BTC deposits. If you get 0.60 BTC as dividend, you cannot compound. According to my calculations, the doubling should take place after 12 weeks, I would HIGHLY recommend pulling out your initial investment latest at this point. |
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As mentioned, if its a bond we don't care about your electricity price. If it becomes unprofitable to mine, most bonds will buy back the shares at a higher price.
I guess we can agree to disagree on that. I've looked at a lot of the mining bonds. I have not seen anyone with a guaranteed buyback price. Nearly every mining bond out there has a clause similar to "Buying back for 110% of higherst trade in the last 5 days" or so. You seem to be wanting to offer a share in your mining operation instead... |
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0.0208 of what per kWh exactly? USD? EUR? BTC?
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How will you migitate (if at all) the conversion risks of BTC <--> USD?
Are your profits in USD (or other fiat money) or do you sell at a fixed BTC price, regardless of conversion rates?
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your investors would loose out as soon as the difficulty rises. and win out when it falls. Which should be the case not that often, according to Moore's law. The title is somehow misleading - you do NOT offer a 1 MH/s PPS income bond, you pay 1 week's worth of 1 MH/s at some random time on Sunday evening (depending on when difficulty changes you can then choose to pay on the higher difficulty). These payout calculations are also a breach of your contract: The holder of this bond shall receive bitcoins equivalent to 100% PPS output of 1MH/s, for as long as they hold the bond. Furthermore you want to offer only 100 shares at a price that is _very_ low compared to the rest of the market without any good reason - to me all of this sounds rather like a scam. To anyone investing in this: It is VERY easy to let some "mining bond" run like a Ponzi scheme (paying interest out of deposits) for quite some time, and as soon as the money runs low, he can always "expand" or "offer more bonds, as the initial experiment with 100 shares worked out so well!". All this can go on for half a year or more easily and he'd still have half of your money. As long as there's no proof of mining capability, I'd recommend to be VERY careful. Especially with an attitude up-front like the one here. |
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Transaction fees? Seriously? Also you can do accounting if you just keep the money on GLBSE in 1 place. In the end you suggest that GLBSE adds an internal accounting system that could never even remotely compete with a proper one, but might lead to a lot of GLBSE hobbyist projects neglecting proper accounting practices because they anyways have set up an "expansion account" on GLBSE.
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Every Sunday evening I will calculate the PPS rate at the current difficulty, multiply that by the expected number of hashed shares at 1 MH/s over a period of 7 days and distribute the resulting amount as a dividend for each bond. Please give the exact formula you will use for these calculations, also include 1-2 difficulty changes during 1 week. If you only take the difficulty on each "Sunday evening" (at which exact time in UTC by the way?) your investors would loose out as soon as the difficulty rises. This would also mean you're NOT exactly paying 1 MH/s PPS, just something closely related to difficulty on Sunday evenings. Also no pictures or other proof that you actually own any mining hardware = bad imho! |
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I disagree on the different wallets - GLBSE is a fundraising/stock exchange platform, not an accounting system. Do proper accounting by yourself, use offline wallets and keep the minimal possible amount of BTC on any external site (like GLBSE) to be safe.
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I wouldn't take "This bond is 100% underwritten by a private investor who wishes to remain undisclosed." into the contract itself.
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The killer service that everyone wants and that highly recommends/nearly requires 2 factor auth is for example World of Warcraft + Diablo III.
Even my web banking account doesn't force me to do 2 factor auth... People are just too lazy/stupid for that. Facebook, Google - you name it, they offer 2FA! I have yet to actually see anyone reaching for their mobile phone though when going on FB or gmail.
Back to topic:
What leads to GPUMax just from a handful of GLBSE accounts being emptied? What about other potential big account pools like deepbit?
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Since it is a 1 MH/s mining bond, it would make sense that he issues another 2500 bonds and sells these... I selling mining bonds, one bond, one Mh/s. My contract is pretty simple, I don't see, what side of it may need some clarification. |
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Wow, an offer for 1550 at 1.015 - somebody has a lot of trust in you and pirate, hm?  |
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They should just use Bitcoin as holder of value, but calculate prices in whatever local currency is mostly used around that island.
Something that most people selling something for BTC anyways already do - e.g. selling one GPU for BTC that are ~100 USD worth. If this then ends up being 1 BTC, 100 BTC or 0.0001 BTC is kinda irrelevant.
Pure BTC pricing ("1 liter milk = 0.1 BTC, no matter how much they pay for 1 BTC on MtGox!") might emerge from that later when a bigger local economy is built and people are used to using BTC.
It would definitely help, as it might be easier to get BTC than whatever funny money might be locally used near that island, depending on location - and definitely cheaper to transfer that money.
The idea of creating an alternate local blockchain though might also be something to be considered - these islandcoins then would be bought for BTC and could even have a fixed 1:1 valuation, but it could be with faster blocks and some trust to a central authority for block generation (but then without fees). If anyone doesn't trust this authority, it would be possible to still pay in BTC or convert islandcoins to BTC, but there might be fees on the BTC <--> BTC transactions and they might take more time to confirm.
A local alt-chain could also eliminate blockchain spam (when buying a bubble gum at the counter) but it would still be easy to convert any USD to islandcoins: Buy BTC, send them to the islandcoin exchange (depending on design this might even be a bot) which takes ~ 1 hour (depending on confirmations required) and get your islandcoins nearly immediately (depending on block frequency there).
If you shop locally, just use your islandcoin wallet, if you shop online for porn (or buy something on the local black market) pay in BTC and let the seller convert to islandcoins if he wishes to.
The only challenge would be to make sure the conversion between the currencies is anonymous enough - this could be done by sending 1 islandcoin every second from the exchange to a virgin address. Once a customer buys islandcoins, they are sent to virgin addresses provided by the customer instead of virgin addresses by the exchange. If blockchain pruning is implemented, the spam transactions can be easily branched off and pruned and all that remains are: One BTC <--> exchange transaction, thousands of "1 islandcoin from a random unused address to another random unused address" transactions that mostly are pruned away after the coins are moved again at random intervals (or even better: pseudorandom intervals that match actual usage patterns statistically derived from analyzing the non-exchange coins!) and suddenly a few of these single islandcoins show up in wallets of merchants.
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In other words:
If you play more often, you give the house more chances to win.
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I'd much rather have a way to clearly define a transaction inclusion policy (for miners) and just having minimal DOS protection fees in the official client.
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Buy them, take coins, claim refund.  Unless these are really vanity items, Paypal should be avoided at all costs... |
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What about the case of GIGAMINING paying a coupon, but it's not high enough/not according to their published payout formula? It should read "weekly, on time and in the correct amount" imho.
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Where's DMC in that list?  |
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