I just want to take a few minutes to address how some people (well, one very persistent person) are asking me about why TAT.VM market price has fallen this week. This person is pretty angry about this,
threatening so besmirch my name unless I buy back his shares. After 2 hours of late-night "discussion", I nearly considered it, just so I could go to sleep...
In summary:1. Difficulty has risen by greater than 20% two times in a row now. I'm not sure if that's a record, but it's certainly much faster than anything I can recall this year. When difficulty rises, the dividend goes down, and thus the fundamental value of pretty much ALL mining assets go down.
2. The market has a new, extremely low-priced competitor. I suspect many people have sold off their TAT.VM at a psuedo-loss in order to buy cheaper assets elsewhere. Really, this is probably the biggest factor. However, this is the nature of being in a competitive market. If demand is high, others come in and undercut you if they can.
3. I have spelled out very clearly how this asset works. It, like pretty much all bitcoin investments, is high risk. Trading this asset properly is all about timing. Buy at the right time, hold for the right amount of time, sell at the right time. Many, many shareholders have played this asset to success.
This asset states its purpose very plainly in the description:
This is asset is being offered for the following purposes:
1. To provide the most affordable and competitive alternative to other mining assets currently available.
2. To provide an easy choice for investors to earn mining rewards without the responsibility and hassle of running personal mining rigs and farms.
If you buy this because you want to simulate mining, and find TAT.VM's price for 1mh/s to be acceptable, great. But if difficulty spikes cause devaluation, or if new competitors in the asset or mining market spur selloffs, and your main concern is share price, then you need to stay savvy. The market price of TAT.VM held quite remarkably considering the recent diff changes, but the new assets on the market really pulled things downward.
In closing, please understand what you are buying when you buy bitcoin assets. I still get people asking me how dividends are determined even though the formula is already listed.
TAT.VM is virtual hashes, nothing more, nothing less. I will continue to deliver dividends on those hashes, in accordance to the contract. It is up to the trader to know whether it is right for them, and how/when to trade it.
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