Maybe you could tell us what question you asked? I think the 12/9 refers to when they responded to your question, not anything to do with bitcoin itself.

No, you are wrong. Receiving bitcoins should be treated as any other receipt of goods. Record the current value of the bitcoins you received as part of your income. If you later sell those bitcoins for more money than they were worth today then the difference is recorded as investment income. If you sell the bitcoins for less than you recorded their worth today, then the difference is counted as investment loss. Careful recordkeeping is important.

I am not sure if I understand all the big words and corporate speak, but it sounds like you are valueing your company based on what you think investors will throw at you rather than any properties of your business?


See here: https://bitcointalk.org/index.php?topic=124441.0

One thing many people here on bitcointalk ignore is that the money supply of bitcoin which increases and decreases during inflation/deflation is more complicated than just looking at blockexplorer.com and reading "Total BTC: 12.080M". What is actually important is the amount of money in circulation, for example if a large holder decides to start using his hoard then that will introduce inflationary pressure, conversely if somebody earning bitcoins starts saving everything he earns then that will introduce deflationary pressure.

Many people here also ignore credit bitcoins. Any time bitcoins are used in a fractional reserve depository way, or when lines of bitcoin credit are issued, that increases the monetary supply. You can argue all you want that those are not real bitcoins, but they really do affect the bitcoin economy.

I am going out on a limb here, but based on what you have told us so far I now conclude your idea will not work and you are wasting your time.

This is one of those listings where they ask for 2 million dollars knowing it will never actually sell out, they hope half of it will sell and they can walk away with their 1 million dollars. I feel disappointed that Havelock would list something like this, it seems to be going downhill.

The problem is that there are two definitions of inflation/deflation which are used by different people. There is monetary inflation, measured by the total amount of money in the economy, and there is price inflation, measured by the change of price of everything. Usually if you have monetary inflation you will also have price inflation, but it does not always happen that way. Bitcoins are an example of monetary inflation (25 new bitcoins are added every 10 minutes), but at the same time we have price deflation.

I have bought the following things using bitcoins:
 Web hosting
 Domain name registration
 Books
 A crossbow
 ebooks
 Dollars
 Stocks (bitcoin stocks)
 Ripples
 Amazon gift card (which I then used to buy more ebooks and movies)

I have also given out bitcoins:
 as a prize for a poetry contest
 as donations to charities
 as a tip to a webcomic creator

This thread is full of misinformed idiots attacking MPEx as a scam without understanding what it is.

"How is this possibly valued so high?" - It is a bitcoin based business which earns income in bitcoins and has a track record of surviving attacks by starting with strong security from the beginning. It earns income, pays dividends, gives monthly reports.

"Where is it possibly getting any income from?" - They publish reports every month detailing things like this. Go read the monthly report to find out. Registration fees, trading fees, option fees, etc.

"It costs 30 btc to sign up, why would anybody use it?" - People use it because it works. If you do not want to pay the 30 btc registration you can use a broker like CoinBr to avoid the registration fee.

"But it is trading at a PE of 97, why would anybody buy that?" - This is bitcoin, a deflating currency. For a steady company it makes sense for the yield to be very low, since you are gaining value on top of the bitcoin you started with. The only reason all the other stocks are trading at such low PE's is because of the huge risk factors. MPOE is seen by the market as being low risk, therefore there is a high PE. Also, people are buying in for the amazing potential future profits; there are just a few stocks listed now, but as the serious financial types from around the world get into the bitcoin space, more listings will be added.

one bitcoin is now about the same price as one ounce of gold.

Looks like we are about 1024 right now. I just bought a bit, and the price usually goes against me, so I am sorry if we see a sudden crash in the next couple days.

I like the simplicity of the powers of two for the peaks at 32 and 256, but I still think as we move into the future we will eventually see the volatility decrease. That might be several years down the road once all of the worlds savings money has flown from gold into bitcoins.

Everybody who was burned by this should put some negative trust ratings on Eric's trust page.

This is trading on their own exchange, there is nobody else who could check to see if they were doing something like that.

See, that is part of the problem, things like this should have been explicitly stated at the beginning.

OK, getting back to the topic: What happens now that the shares did not all sell? Will the company try to sell those unsold shares later? Will this affect the amount of shares held by the insiders?

I don't feel like finding the quote right now, but I seem to remember somebody saying TPF was founded in 2008? As in, before bitcoins were started? So how have you had a bitcoin exchange longer than bitcoin has been around?

And who are you, what do you do, and why should we take your word for it? How do we know you are not just one of the Havelock guys trying to hype your stock under a sock-puppet account?

Remember that the fees will increase both by amount per transaction and also by increasing the total number of transactions. If enough people use bitcoins, the fees can be low and still support mining by sheer volume. This might require increasing the block size?

I guess the big question is what the market cap ratio of bitcoins and gold will be in the long term? Will all of the value currently stored as gold be transferred to bitcoins? Gold has some utility for industrial, electronic, and jewelry uses (and as a medium for long-term storage of bitcoin wallets due to its non-corrosiveness), so the price of gold will never go all the way to 0, but the monetary markup is a huge component of its current price.

Over the past couple weeks the price plummeted from 5.0 all the way down to 1.25, it looks like that was a dead cat bounce back up to 2.5, the price seems currently to be settling at about 1.4. This price looks shaky, the volatility is still high and the price could continue dropping, it might even go below 1 soon.

If the price drops to about 0.8 then USD will be equally worthless against bitcoins and ounces of gold.