So as a shareholder in the Canadian exchange I can't help but notice I've lost ~ 75% of my invested bitcoins over the past month with shares now trading for 0.1 BTC.  I was curious if anyone here has any insights about the things affecting this company and its stock.  Logically I would think that the stock price measured in bitcoins should be positively correlated to both the volume in bitcoins traded on the exchange and to the price of bitcoins, yet even though these two things have trended up over the past month the share price has tanked. Any theories as to why?

I do believe that the shares were the target of a pump and dump scheme several months ago, so perhaps that destroyed investor confidence? Another factor could simply be the lack of information about how the company is doing makes it hard to value.

So lets do a quick back of the napkin calculation shall we? volume over the past 7 days has averaged 5133 btc  5133 x 52 = 266916.  The exchange charges 1.5% both ways so 3% per txn. 266916 x 0.03 = 8007.48.  8001.48 x $1000 = $8,007,480 gives us a (very) rough estimate for revenue. at 0.1 btc per share and 10,000 shares outstanding (representing 10% ownership of the company) the market cap for the company is 0.1 x 10,000 x 10 x $1000 = $10,000,000

Now the big mystery is what kind of profit margins is the company enjoying?  Lets throw in 10% for an estimate (for a comparison microsoft is 28% intel is 21% and facebook is 21%)

this gives us earnings of $800,148 which makes the price to earning ration = P/E = 10,000,000/800,148 = 12.49

for a comparison facebook = 97.18 microsoft = 14.02 intel = 12.89 Mcdonalds = 17.53

Basically this stock is trading at multiples as though it were a blue chip company in a mature industry, for gods sake it has a lower P/E then McDonalds!

Given that this should probably be viewed as a small cap growth company I would say that there is alot of room for multiple expansion and I am hoping we are near a bottom!

Full disclosure: I increased my position in this stock by 50% today.

This sounds what i like to do as well. I have a certain amount of fiat i like to regularly change into BTC as a long term savings, and when i see something that i can buy online with BTC that i was going to buy with fiat anyway i will purchase the equivalent amount of BTC and make the payment with it.

Thought about it, but the difference over the price on the exchange means its about as expensive as going through virtex.  I don't really have a problem with virtex per say, I've always found them to be a great service and I am sure the new fee structure is less expensive for some people (any whose average deposits are > $500).  I was just hoping there were other services available to canucks for someone in my situation.

I guess I`ll just have to make deposits less often and save up my fiat in a bank account earning 0.1% until I have enough that the $5 fee is less burdensome as a % of my total deposit.

I am just wondering if anyone can tell me what the best service is for buying small quantities of BTC (around $20 - $50) for the smallest fee?  I like to purchase small amounts of BTC frequently to cost average my position, and to make buying them a habit.  With the fee changes to CaVirtex it costs me about 12-26% of my money in fees when I do it like this, so I was hoping someone could suggest another service that isn't so expensive for me.

The article mentions that it will possible to buy gold and usd backed assets. How coukd you possibly trAde gold over a p2p trustless network? I like the idea and it sounds interesting, but i definatly have some questions

Are there no inexpensive ways for small time buyers to make cad deposits? As someone who puts $20 a paycheque into bitcoins, the $5 per deposit fee represents a whopping 25% loss of capital before ive even made a trAde.

As a customer i like the company, never had a problem. As in investor there isnt enough information to value the shares. Revenue can be approximated, but we can only geuss at margins. Having said that i feel it is a well run company and it should do well if bitcoin is here to stay. I own a few shares, I just hope that when they finally release some financial information the shares i already own arnt widly over valued

Selling at 0.95 right now. Anyone have any theories as to why?  insider knowledge? I see they lowered their fee's should this not mean lower revenue, or are people expecting more volume because of this?

In practice however 'risk premium' is indistinguishable from the 'usery' part of the interest rate.


I would argue that the uncertainty of the future is what gave rise the the psychology of 'time preference'.  Human beings have an innate desire to control and understand our surroundings, this stems from our nature of the 'rational animal'. Different people have different tolerances for risk, which would also explain why we have different time preferences.  Perhaps there were once homo sapiens who did not value present consumption more then future consumption, they would have been out competed by us modern humans who, with our psychology of time preference, had better luck controlling our situation and putting our ideas into practice. 

You can argue all you want that people shouldn't value present over future consumption, but so long as they do then present consumption will always command a premium, and loans will always be usurious.

Suppose not everyone turns out to have the ability to pay me back.  Some percentage of the people I loan to will fail to pay me back.  My expected rate of return, E, is then E=P(1-x) where x is the ratio of people who will default and P is my principle. In this case I the lender do not get back what I lent out.

If I were to charge interest such that r = [1/(1-x)  - 1] my expected rate of return would then in fact be what I had lent out.  P = p(1-x)(1+[1/(1-x)-1])

Would it be fair for me to charge this rate of interest?

As to the original question of the thread, I would point out that as the amount of money you lend out increases your rate of interest must also decline as you saturate the demand for loanable funds.  Eventually the rate would fall below [1/(1-x)  - 1] and your expected rate of return would be below your principle, and your scheme would have reached its limit.

my deposit was credited to my virtex account, everything looks normal.

Sent a small amount, will probably take awhile for it to confirm, but I'll report back with results.

It would be a shame if they were to run off with the deposits, their service runs quite well and during the latest crash I was able to trade without interruption. they have a good reputation and have a fairly hefty fee, and therefore must have a decent revenue stream.  It would be very short sighted to throw that away for a one time theft of deposits.

Just loggin in, everything appears normal to me.  Withdrew my bitcoins, took about 2 mins for it to reach my wallet.

Deflation = Bad.

Bought some shares at 0.41. been a painful ride since.  I think the reason they are sliding lately is because there is not enough info to properly value them, no one really knows what kind of earning each share represents.  Revenue should be easy enough to calculate given that volume is public knowledge, but the price of the shares doesn't seem to be correlated to that very well.

Little doubt this was orchestrated, massive lag on gox combined with the main chart sites and the forms going down, hmmm....

I trade on a smaller exchange so the lag didnt affect me too much but I felt blind without my charts .

I am an immigrant from ronpaulistan

www.ronpaulforums.com

The money stock is currently inflating at around 12% a year.  To offset this the bit coin economy would need to grow by that amount in order for prices to remain stable.  It is very difficult to get statistics about how many bitcoin transactions are actually used to purchase goods and services. We are currently seeing price deflation due to speculation that the bitcoin economy will expand rapidly in the near future.

I have a few bitcoins and am wondering if i can invest them profitably. I have heard that there are exchanges that allow you to buy/sell bonds and stocks in btc companies.  Do any of the veterens here have any opinions on which site offer the best/most trustworthy services for this?  Any investing tips for us newbs?