True, but converting takes time, and during that time the prices might have already adjusted.

I might easily have done something wrong:

Current MINING div 0.00016113
Difficulty change 19'402'467.47/15'605'632.68 = 1.24329899773
New MINING div 0.00016113/1.24329899773 = .000129599

Current assets 734.18617511
Current units 11630
Asset/unit 0.06312865

410 with new MINING div .000129599 * 410 = 0.05313559
400 with new MINING div .000129599 * 400 = 0.05183960
Excess asset/unit 0.06312865 - 0.05183960 = 0.01128905

I might easily have done something wrong:

Current MINING div 0.00016113
Difficulty change 19'402'467.47/15'605'632.68 = 1.24329899773
New MINING div 0.00016113/1.24329899773 = .000129599

Current assets 734.18617511
Current units 11630
Asset/unit 0.06312865

410 with new MINING div .000129599 * 410 = 0.05313559
400 with new MINING div .000129599 * 400 = 0.05183960
Excess asset/unit 0.06312865 - 0.05183960 = 0.01128905

If it happens tomorrow, I look to see if I have any available funds lying around in my account to buy more ;-).  Since I get daily dividends, the amount in my account goes up every day.

There's always a chance that you'll lose your money, with any of these investments.  For that reason, it's a good idea not to have all of your money in one place (I currently have a little bit invested in 4 places).  At this point, I could lose a bit of money and still come out ahead, as I've made a 25% return since I started trading last month.

Difficulty is not so high at the moment that dividends are going to shrink like crazy on the next change.  As long as people are still getting paid, most are not going to value their investment that low, that quickly.  While some might, the majority probably won't.  That's not saying that it won't go down a bit, but overall, those that are fearful and bail at a low price will have their shares picked up by people looking for a bargain.  If you panic sell, then you probably will lose money.

For the share price, this is still paying pretty good divs.  While the share price is 10X the cost of AMC, for example, just ONE of its divs is 40 times what their last div paid.  TAT.Asicminer is paying about 10X the VM's daily divs per week, which amounts to 1.4 times the amount that VirtualMiner costs, at 4x the cost (although I do have shares in both of them).  So at this point, it's a pretty good deal.  Later on, it might not be so much.  You do have to pay attention though, because there is the chance to lose a lot more if you don't stay on top of it.

I guess the whole security is really interesting but the maths behind is not that easy..

But anyway something tell me that 60% the of Deprived Mining Investors doesn't understand the SELLING Fund  especially the maths.

The mechanism is this (and you'll see it in practice on Monday by the looks of it):

If capital rises above 410 days of (MINING) dividends at current difficulty then a dividend is paid to SELLING so as to reduce capital down to 400 days of dividends.

Imagine mining was paying 0.1 dividend per day and there was 40 BTC per mining share of capital.  That means there's 400 days of dividends for MINING put aside so they can continue to be paid.

Now imagine difficulty rose so that the daily dividend to MINING fell to 0.095.  We still have the same capital but there's now a bit over 421 days of dividends at the new rate.  We only need 38 BTC to provide MINING with 400 days cover - so each SELLING share would get a 2 BTC dividend.

MINING gets its dividends every day. SELLING only gets one when difficulty rises so that there's enough capital to pay them a dividend and still keep 400 days to cover MINING's payments.  If difficulty falls, stays the same or only rises below a certain amount then SELLING will receive no dividend at all.  If difficulty rises fast then SELLING will receive a large dividend.

And it's more complicated in the long-term - as SELLING could receive huge dividends a few times, then difficulty stabilises and it never receives another.  Or SELLING could receive nothing for a while - then suddenly difficulty surges and it gets dividended a lot whilst MINING dividends drop to being tiny.

As with ALL mining investments, results depend almost entirely on future difficulty changes.  Payouts for MINING will mirror those from identical MH/S in PMBs and also those of shares in fixed mining capacity (those with no reinvestment).  Payouts for SELLING (assuming there are some) represent the return of capital once it becomes obvious that the capital isn't needed to continue paying out to MINING.

OFFICIAL RESPONSE FROM FRIEDCAT

Hi ThickAsThieves,

1. They will arrive at October as their earliest. The specs are unknown (only simulation results at this moment), but surely they will be much better than all available similar products in the market now.

2. Cryptocurrencies or mining of virtual currencies are OK. Exchanging them for fiat is less OK but the legal risk is mostly on the exchange operators' side. However as everyone knows, the policy in China is never predictable so there is indeed risks in the future. We have been considering and coping with this uncertainty from the day our chips passed the test and are on the start of building offshore company structures.

3. The access to company wallet is backed up and we back up shareholder information frequently. Also the division of work in Bitfountain is not yet so refined that there are no replaceable positions. We have already left our startup stage so it's become more organized, therefore backup employees are becoming more important and in our range of plan.

Best regards,

friedcat

I disagree, and that's what makes this fun!

Hi!

I have a small webshop and I would like to add bitcoins as a possible payment method.

I am using Mal's E-commerce solution and I'm having a hard time figuring out the way to implement this.

Here's where I get stuck:

I can add to Mal's a payment method called bitcoin without problems. But I'm not sure how I should convert the € value to BTC at the moment of the order.

I guess I should use somekind of API (which is a new world to me) to get the current MtGox price?

After that should I maybe try to write some javascript that picks up the € price from the cart and translates it into BTC. Even then there is the problem of the automatically generated email, which would still show the price in €. And I have no idea on how to edit the email dynamically on Mal's (might not even be possible).

I'm not sure if anyone can help me with this. But I hope the community can see the problems related to accepting bitcoin for a small webshop like mine. I think a lot more people would like to accept BTC but simply don't know how to overcome issues like the ones I pointed out.

DMS.MINING seems like a great buy right now at 0.031/share for 5MH, especially when TAT.VM is selling as high as .009/share for 1MH. VM seems overvalued right now, but MINING seems undervalued even if the VM value drops back to sane levels. I suppose a lot of potential investors are put off by the long contract, but that is their loss.

I'm on my way back from a trip, so i'll have more details and an official thread for the btctc version of tat.vm later, but yes 20,000 shares have been released to start, more will be released later.