I think GLBSE could be a good place to list even if you have a few large investors. There is no reason shares have to be below 1 btc in price, you could have shares be 10 btc if you want. The GLBSE would then keep an orderly record of who owns how much of the investment, and allow people who invest the ability to sell that investment at a later date.

This shows the beauty of bitcoin. Because of bitcoin, we have the option to invest in a small operation on the opposite side of the globe. It opens the financial market worldwide and allows freedom for your money.

"Sharecropping" has a negative connotation to many people because of the system used in the US after slavery was made illegal, where rich landowners basically continued slavery by having the poor former slaves work the land for no pay. Sharecropping can be much more equitable and viable if the people who work the land get a meaningful portion of the profits. It all depends on how the crop is shared between the landowner and the landworker.

Actually, what he is doing makes perfect sense. In your OP you said you would be doing an "agressive buyback". By showing the actual change in outstanding shares, he is illuminating what an "agressive buyback" means to you.

Could you please be much more specific; what the hell are you talking about?

The big question here is wether the investment goes up in value or not. Say you loan btc out at 2%, then your math is correct, the investment income is added onto the btc value increase. But if the investment is in a physical good then the currency gain is not added into the investment gain. Whoever came up withthe scenario needs to be a bit more specific.

I know this is a slightly different situation than investing in a company, but consider the following: You have the opportunity to invest in gold using your bitcoins. Let's say you did some analysis and decided the price of bitcoins (in dollars) would go up 3%, and the price of gold (in dollars) would go up 2%. If you invest your bitcoins in gold, after a year the value in bitcoins would have gone down, since bitcoins were rising faster than gold.

The big problem with all this analysis is that the market will react. If the price of bitcoins is going to rise in the future that will get priced in, the more sure people are the price will rise then the faster it wil jump now. I just don't think we will ever have a steady, large deflation; there will always be some risk to holding onto the coins hoping the price will go up,  and so at some point even with deflation there will still be a higher net present value for investing than just holding the coins.

Since there is a liquidity crunch, some people are selling off assets at a reduced price. If you had some bitcoins lying around you could pick up some great deals right now.

If there is a liquidity crunch, doesnt that mean it would be better to have the bitcoins in hand?

Don't worry too much. You would not want to see me try french. Je ne parle pas bien Francais.

But would it really be that hard to put the pertinent information both places, or at least a link to the information?

I have never used silk road. I have seen several people saying that the majority of bitcoin commerce is on silk road, but I have never seen actual data that backs that up. Does anybody have the daily revenue of silk road? If we could find that we could compare it to the daily volume of exchanged bitcoins and see how much affect the shutdown of silk road would have.

Who said anything about ounces? I see measurements in grams.

Are you a non-native English speaker? The OP is a bit hard to read due to sentence structure.

This sounds like a perfect use of the GLBSE. I know adding in a layer of bitcoin and share ownership will make the accounting more difficult, but once you initially figure out how everything goes it will not be too much more work.

The one potential downside for investors is that this business will be holding physical assets, and so the share price will decrease as the BTC rises in value. Although, if BTC goes down in value the share price will rise, so this could be a hedge against the BTC price dropping. This will make investors have to consider how much they want to invest denominated in a deflating currency. This general predicament is shared by any company listing on GLBSE, not just yours, so do not be discouraged. I think the price of Bitcoins will stabilize in the future, then investing will really take off, and you may have an advantage by being one of the earliest to list in this market.

Eskimobob is doing nothing but posting accurate facts, something your posts seem to lack. The only reason you would think he is trying to catch a lie is if there is a lie to catch.

EskimoBob: this informaiton is useful, please keep it updated periodically (if Usagi does not post the information themself).

Do you have an upper limit to the amount of gold you will hold?

How secure are your gold holding arrangements?

Will you be running a bot on the GLBSE market to keep the shares following the BTC/XAU price ratio? Will you be buying back shares? If so, what will the spread be?

So is your plan to buy the gold and then sell it as shares, or sell the shares and then use the proceeds to buy the gold? (Your statement sounds like the first one, but I am just checking to make sure everybody is on the same page.)

Will you start to purchase more gold as soon as you sell the first batch of shares?

I remember when I first learned about bitcoins, I saw a bitcoin donation address for xkcd. I am not sure if he still accepts coins, will search later.

So you are saying the expected profit for CPA for the next year is 0.03 btc per share?

In the extremely risky bitcoin environment, an isurance provider is a high risk investment, so a very low P/E makes sense.

Bitcoins are not consumed, they are just traded form one person to another. The value of the bitcoin economy lies in the ability of the bitcoins to be transfered in trade for other goods or services.

What is a coinurl?

Will you post pictures of the physical gold you are holding?