The payments to BFL in Bitcoins are automatically converted to USD through BitPay. BFL never sees a Bitcoin.

That said, the consumer protection laws would still apply since you're effectively paying in USD.

Quick update:

Congratulations to everyone for a successfully first week! We currently have 646 Notes outstanding, which is more than enough to purchase 4 Single SCs (maybe 5 if the BTC price keeps rising). But why go for the Singles when you can go for the Rig!  
Let's keep it up everyone

Oh the good 'ol days. I used to be a beast in CS:Source and TF2 back in the day. I remember when Hellgate London came out during my freshman year in college and we had a Dorm party for it, with all of us on the same server.

I've actually gotten back into the Half Life series of late. Played through Black Mesa Source, Half Life 2, and working through all the episodes now ..damn I can't wait until HL:3

Reading about the Silk Road from a Wired article was actually how I first got into Bitcoin back in April / May 2011. I've been on the site a number of times out of curiosity, and never actually purchasing anything. I thought the concept was pretty cool, even though it the products were quite illegal.

Instead, focus on these naturally grown veggies

I think that's called "contact high"

That's quite a big leap..and I'm sure there will be other states to follow suit shortly, like my home state of Vermont

Washington and Colorado now get to enjoy the extra tax revenue thanks to good 'ol Mary Jane (or at least eventually).

I have in the past, and it was very addicting. A friend of mine got me playing, and it helped the he had been in the game for years...he helped to get me some sweet ships and upgrades (and cash) right off the bat, which was cool.

Can't say I've played it since then. Allocating time for MMO games is virtually impossible when you have a full-time job after college haha..or at least for me

I actually create a Windows XP VM on my Windows 7 machine to run some of the older games I like..such as the original Red Alert '95

Bwahaha..sad, but very true!

There better not be a heat issue when they've got those sexy heatsinks on the boards

Nice! I heard good things about XCOM but haven't really put much thought into getting it.

Borderlands 2, however, is something I've been wanting to get for a while. But, it'll have to hold since BLOPS 2 is coming out next week and I've had a preorder for that since June haha

Sooo...

I play games from time to time. Recently Dishonored and Assassins Creed 3 come to mind. Any of you guys game out? Any specific games or consoles?

Oh, and I know Halo 4 just came out as well. I'm not much of a Halo kinda guy, but I've got a few of those Mountain Dew "Double XP" codes if anybody is into them...PM me and I'll send 'em your way. 

I hate to rain on people's parades, but unfortunately there's quite a number of problems with this.  

First and foremost: Who are you?
You're profile indicates that you are a 220 year old New Yorker who signed up to BitcoinTalk 5 days ago and uses an anonymous email. You did some quick posts to get out of the Newbie section and then jumped straight to Securities.
To gather investors, I've found it's best to be transparent...
1) Who are you?
2) How old are you?
4) Where do you live?
5) Where did you go to school?
6) What did you study?
7) If you're currently employed, what do you do?
8') Have you ever invested before?
9) What brokerage(s) do you currently use?
10) What brought you to Bitcoins?


Feasibility
I purchase 4 shares for 1.0 BTC. That BTC goes through your account, through Mt. Gox, to your bank account, to your brokerage, and into stocks that pay dividends. Those quarterly (or annual) dividends go back into your brokerage account, you pay our taxes, the remainder goes into your bank account, then to Mt. Gox, then back to BTC, then to us again..minus all the fees of course.
Does this sound about correct?

Let's ignore the extreme trust issues you're going to encounter when convincing people about money going into your own personal account..and instead let's focus on the investing aspect.
1) What do you plan on investing in?
2) How do you plan on getting a 10% dividend return per year, especially with only a market cap of $10,000? Describe to us your portfolio and your risk management strategy.
3) How long do you plan on keeping the same stocks in the portfolio? Dividends on short term investments are taxed as ordinary income on federal and state levels. Qualified long term dividend investments, on the other hand, are taxed as capital gains. In some circumstances, if you're ordinary tax bracket is 10-15% then you pay 0% taxes on dividends.
4) As I see you've already noted, reinvesting dividends is an "all or nothing" sort of thing. Based on how you've described your plan so far, the idea should be to not reinvest and instead provide your investors with a profit.
5) What about stock price fluctuations? For any gains, do we (as investors in you) see a profit from that as well?
6) How do you plan to mitigate any losses?
7) How are you going to compensate for BTC/USD price fluctuations?
8') Have you been granted your Series 7 and 63 licenses through FINRA and/or are you a practicing CFA or CFP?
9) Do you currently own or work for a SEC regulated organization?

All these questions are really just the tip of the iceberg here.

Aside from the questionable legality pending answers to all the above questions, there's still an insane amount of risk here, which does not seem to be worth the reward of "10%". I'm not trying to harsh or anything, but I like to know what (and who) I'm investing in before I actually put my money somewhere...and I trust others do as well.  

That's usually the way I do things as well, like my original financial analysis which I perfected over weeks of messing with numbers and equations. My original ROI calculations, on the other hand, I did in my head while writing up my first post back in September and didn't even think to change them as things progressed. Ah well...

Anyway, I'm happy to help with any questions you may have regarding investing. I'm no expert, but I have had my head in the game for many years

Indeed, it was a typo in the second one (changed it). I don't think I was even thinking about it the first time.

Anyway, corrections added.

Ah, I didn't know that was you! You may own 47% now, but that'll be dropping quite a bit as I finish putting in my own money mid-November

And you're exactly right, we do need more people like you. I'm hoping issues with GLBSE get sorted out and wary individuals start investing again.

Thanks enygma! Always happy to meet and talk with investors

The cool part about Havelock is that I can schedule all interest payments ahead of time. Tomorrow, for example, there should be a notification (I think) that goes out to investors letting them know that the first interest payment is set for the 30th this month. If it works out properly, then I'll set up the schedule for the next few months to make sure things go smoothly.


And for more of a global update to everyone:
Congratulations everyone!  
We're currently sold over 580 Notes outstanding, with a little over 9400 Notes left before hitting the cap. I'd say the past 3 days have been quite successful! If this is any indication of how the Fund will proceed in the future, then I'd say we're right on track to reaching our capitalization goals to purchase a Mini Rig!

That said, I've just about finished working up the framework for the new Company Financials, which includes an analysis of the Fund (showing profitability, interest/principal payments, and how things will go for the next 14 months), as well as the company Income Statement, Balance Sheet, and Cash Flows...though admittedly those last three are a bit more interesting to work with when dealing in Bitcoins instead of Dollars  
At this time, we can currently afford 4 Single SCs without a problem.

I'll post another update when I've uploaded the financials to my website and Google Docs.

@Niko -- I've usually found it best to just ignore SAC. He's just here to troll my thread 

It actually works out in my favor as well since he keeps bumping my thread to the top of the Securities section