What happens in the case that MtGox gets eaten by Godzilla tomorrow and closes down before reaching neither 4 nor 6 USD?

I like the fact that GLBSE is becomming a "betting" site more and more...

The problem is that not all investors are clever...
Optional correction/scaling of GLBSE graphs to bump out USD conversion rates would be a great thing to have but as you said, all it takes someone smart who recognizes that Bitcoins in this case are only used to transfer USD and payouts will be scaled accordingly.

To hedge against the risk of "I sell 100 shares this month, but need 500 shares sold to buy anything - next month BTC crashes and I'm out of anything and can't even pay my users any more", you can sell bundles of shares in an amount that you feel comfortable with to trade immediately on MtGox. Say you want to sell 1000 shares at 1 USD each: As soon as there are 1000 buy offers at 0.2 BTC or higher (assuming 5 USD per BTC), you sell 1000 shares, get the BTC to MtGox (or elsewhere) and exchange them to USD. If volatility is SO high that even this bears significant risk, you should try to sell shares OTC via BitPay or other solution providers that do these conversion steps for you.

You could parse the csv for any assets you still hold and then do requests to the public API for these to get current prices. Also you could ask for orderbooks instead to have a "if I sell ALL my assets right now down to 1 Satoshi, how much can the market eat up and what do I end up with?" number.

Would be cool if the subticker symbol would still be a bit descriptive (BOT, BANK, TECH...), single letters that are not used to enumerate (like in PPT.X) are a bit too "expert knowledge" heavy for my taste.

It would be cool if you would pay all income from HEDGE.YXZ.SHORT/LONG to the HEDGE symbol and open this one up for trading as well. You could still keep 90% or so of these but they might rise in demand + price.

Also maybe you could even offer the SHORT/LONG positions at 1 Bitcent (0.01 BTC) each, to increase liquidity. Oh and yes, even though I hold a few shares I'd love to go short on DMC as well (and probably TEEK.B). SATOSHISDEAMON.HORSE also seems like a good fit to your model.

Couldn't you issue bets on betsofbitco.in cheaper? It seems to me that all you do is bet on some set criteria to be met or not and then all that is done is take the money from the other part and give it to the ones that predicted correctly.

If everyone goes short or long though, there's no money in this anyways - where's the incentive to go long on GIGAMINING for example, if nobody dares to go short?

What happens if in the middle of the night (for you) the asset XYZ fulfills the "short" criteria - how do you stop trading or make sure there's no panic-sale of long positions etc.? To me this just looks like a worse alternative to betsofbitco.in, just with a lower house edge at least (2% instead of 10%), but with worse moderation.

Does "pair of bonds" mean by the way, that you will only sell the same amount of bonds on each side? Something like "500 HEDGE.GIGAMINING.SHORT for 0.1 BTC and 500 HEDGE.GIGAMINING.LONG for 0.1 BTC", even if the demand is very strong on only one side?
An example: There are bids for 100 SHORT and 10 LONG - will you sell 10 SHORT + 10 LONG in this month or 100 SHORT, 10 LONG and have an open ask of 90 LONG for 0.1?

I'd love to see this kind of thing for YABMC

Well, as I said, you can also calculate how long it would take to be more profitable if you buy 1 MH/s MOORE right now at 0.50 BTC compared to 1 MH/s stable for 0.30 BTC...

How many bonds will you issue each week?
Will bonds be bought back or can I keep my bonds (as you said, you pay dividends)?
Who holds the guaranteed money in escrow? (With PPT.X bonds, that's the PPT asset)

Would be cool if we could access the CSV via the API (though that would mean we'd save our private API key on google servers for the requests...) - then it would be possible to directly import the CSV in google docs (there's a native function for that).

No, but that 1 Bitcoin can earn me more (in some cases FAR more) investing it elsewhere than investing it in Kris' Minirig.

Web app would be a bit weird (I personally won't upload any csv to a website with a list of addresses + trades...)

It would be cool to do a public spreadsheet template though for example.

Are growth percentages (the 0.89%) compounded or not? Meaning: after 100 weeks, is the hash rate per bond 1.89 or higher?

Also 100 (percent) / 2 * 52 (weeks) != 0.89%... How did you come up with that number should you not plan to compound interest?


Disadvantage 2 is easy, just think how long you want to hold a bond and then calculate how many hashes it would solve in that timeframe. I could try to put up a calculator/spreadsheet for that... Something along the lines of "I want to hold bond A or MOORE for X weeks - how long do I need to hold MOORE to be chaper per hashes solved than bond A?"

Well, to me it only seems that the issuer can stop mining if he wants to - however "The holder of this bond will receive as coupons a number of bitcoins equivalent to 100% PPS output of ONE MILLION HASHES PER SECOND for as long as they hold the bond."

This would mean I'd still get paid, even if the miners aren't running. He doesn't have to keep his rigs running at a loss though.

The giant askwall is really not nice at all, especially as it came on such short notice and without warning.

Worked out great for mybitcoin.com, didn't it?

The only thing how this could help walletbit would be to include their own transactions for free in their blocks. With only 25 GH/s this is too slow for the typical customer and at current transaction fees it's not really useful at all. Also in the future the value of 25 GH/s might not bee too high... even until you actually hold this minirig in your hands, there might be a lot of angry people out there with no payment from you whatsoever.

All in all I'd suggest you to hand out bonds at a face value of 1.30 BTC that mature in 1 year or so from now and sell them for 1 BTC on GLBSE. This is very close what you're traing to do already now, but worded maybe a bit clearer. Also you should give your contact details + ID in escrow... this convinces me far more than you having an online wallet service (this is actually more of a warning sign for me...).

Giant askwall is up and running, huh?
Might be some nice profit for people who still want some 0.3 per MH/s shares.

The hashing power is planned to come from Minirigs I suppose?

You are in essence asking for a loan of 1 BTC and paying back ~28% extra in 9 months (or even a bit more) - but only "if the Mini Rig runs as great as they say". These are far worse conditions than most loans made to random strangers on this forum. Why sould I trust you - for 9 months?!

Also you don't seem to know a lot about mining, if you say "Running 25GH/s would [...] make transactions of WalletBit so much quicker."

Sorry, maybe try to open up an asset (with verification!) on GLBSE, it's made for these things (support for dividends/paybacks, easy handling of shares...). The idea is great, but quite a few people also had it already - and they are expanding aggresively.

Two things that I would change/consider:

1) 1 BTC share price is bad for liquidity imho. - please make it 10 or even 1 Bitcent a piece and just issue 10 or 100 times more shares.
2) Monthly aggregated payouts will fluctuate a LOT especially with assets like YABMC that pay out after difficulty changes. Other assets also pay out only each weekend - there are months with 5 weekends...

Also I certainly do NOT like the "no insurance" policy, since you're likely selling at a NAV above 100%. To be worthwile, your NAV would need to be below 100% in my opinion.

Monthly payments + huge IPO can also lead to at least some time of "buy on the 29th and get double dividends". If you start with 0 assets, it's not good to buy in early and if everyone buys in late, there are no dividends yet here.

What's the exact starting time + date for these shares? Will you only issue more shares in the future at difficulty changes or how else will you handle selling more shares during a 2016 blocks period?

Actually just holding mining bonds gives a weekly return above 1%, so it's not that out of the ordinary...

Maybe you can publish the trades 1 week later or so, if you're afraid that others might somehow act upon your strategy?

Example:

Now: 1 BTC = 5 USD, 1 Share = 1 BTC

Future: 1 BTC = 50 USD, 1 Share = 0.2 BTC

In BTC, your share has tanked. In USD your share is now worth twice as much as before! It would make sense to look at your share from the USD side, as your investments + expenses are in USD too, but there's no way to switch to "USD mode" in GLBSE currently, so all people would see would be a loss of 80% of initial investments.

It would make sense to mark this asset "USD side" and display the development of the share price in USD. Trades could still be done in BTC actually (but it would also help there to have an USD value displayed next to them) and payouts will hopefully always be only in BTC on GLBSE.

If you had bought USD valued stock in BTC ~1-1.5 years ago it would have needed to perform insanely well to even have you loose only half of your BTC. If you look at an insanely well performing stock on USD side however it is fine. These effects will hit GLBSE sooner or later too (SATOSHISDEAMON.HORSE for example is valued in USD and pays dividends in USD (converted to BTC) too), better make sure now on what side of the currencies you're working and have GLBSE support that until the next summer bubble approaches.