It may take 10 years for the investment to double your money from the dividend, but at any point you would be able to sell and recover your initial investment (assuming there is still a market and bitcoin still exists, etc). Since when does your money have to double to "pay off"?

So you are estimating a 3% income per month? Sounds like an interesting endeavor, just the kind of thing that the bitcoin investment world is good at. I would consider investing a bit.

When bitcoins were first introduced, Satoshi was active on the forums and helped the developement team. Then he just stopped posting. Nobody knows who he was (except maybe Gavin, but he won't say one way or another). Satoshi might be one of the dev team, or just one of us, or he might have just walked away from his creation. Nobody knows.

So it is more poking fun at EskimoBob, rather than advertising for your bond? I guess if one was familiar with EskimoBob's conversations it makes sense, sort of. It is still a dumb thing to have as your signature.

I have to say I agree with EskimoBob, it is taken out of context. He was not praising you, he was dissing you. To use that as an advertisement is a bit shady to say the least. If nobody is saying anything nice about you, just don't quote anybody.

As I stated above, I suspected the immediate affect would be a drop in price. I had an order sitting at MtGox for $10.65, the price dropped to $10.60. While I just got my trade in, and it looks like I was really smart, it was mostly just luck on my part. I had no way of guessing exactly where the price would drop to, but I am happy I got my trade in. Big moves are still possible, so we will just have to see where things go from here.

Like they always say, "Don't invest more than you are prepared to lose"

I have no direct exsposure to Pirate, anybody else clean of this mess with me?

Assuming he does pay everything back ...

All the investors who had depoits now have btc, they want to cash out, this will drive down price.

How much of the recent rise in price has been people bringing in money to invest in Pirate? Now that he is closing up shop, they will stop bring in money, this will also drive price down.

Since the price will stop rising, many miners/speculators will try to sell quickly to get the highest rate on their bitcoins, this will also cause the price to go down.

Dropping price will cause panic sells, this will also push down the price.

The sudden announcement from Pirate causes uncertainty in the market, this causes people to more cautiously invest, this allows the price to drop precipitiously.

All indicators are for downward movement, by my reconing.

But ASIC's coming out are not helpful to people who are holding a bond for "1 MHs", since ASIC's will certainly increase the total hashrate and therefore the difficulty, so your 1 MHs will certainly earn less.

You must have gotten into bitcoins just before I did. By the time my money cleared to an exchange, the price had dropped below 15 USD/BTC. Looks like it has just about recovered

If one is making money in the bitcoin environment, then it is advantageous to have bitcoins continue. One could purchase some mining bonds to help continue bitcoin mining, and thus bitcoins. Even though the bonds themselves are not making a viable return on the investment, they perpetuate the bitcoin system, thus preserving the rest of this ones hypothetical business.

Maybe instead of saying "dumbed-down" you could say "here, let me simplify it for clarity". Thanks for going through that, it was nicely simple and made the situation more easy to understand.

If I may make a guess, it sounds like Obsi is investing in some sort of short-term loan system. These usually have very high rates and fees, but for people who have bad credit they are sometimes the only option, so it is not strange to have such a high rate of return. I presume he does not want to disclose who is receiving the money because they have a limit of incoming capital needed, and if we all go invest with them Obsi would have less oportunity to invest. The morality/ethics of such institutions can be debated (I don't think Senbonzakura is going to invest here anytime soon) but it is not completely unrealistic from the bits and pieces Obsi has let out.

Please correct me if I am wrong (maybe you can say if I am on the right track?)

With the nature of mining how it is, all these mining companies are doing the same thing. So the prices will adjust until they all give the same relative return.

The returns on many GLBSE issues are greater than the rate for the credit card, so it is not a completely insane idea. GLBSE issues tend to be high risk to get that high return, so you have to be careful. Bitcoins themselves are high risk. Bottom line, I would not suggest borrowing more than you would be able to pay back if you lose everything.

Perhaps a better idea would be taking a portion of your income to invest, sort of like putting money into a retirement fund (just much more high risk).

The way it takes a couple days to ramp back up to 1% is a bit indicative that it is not a scam, that it does take time to get the money into the business.

I am still not completely convinced, but I am optimistic.

It is not because you are new. If the oldest person here listed those details we would rip them too.

Maybe he will say he converted it all to USD and was mugged in a back alley and they stole his suitcase full of cash?

Yes, there are a few GLBSE companies which are not mining or Pirate or just holding funds. Having a detailed business plan (and an actual describable business for that matter) is a great way to attract investors. Many GLBSE investors are looking for something less risky than the Pirate pass through to balance their portfolio.

Do you have any complete projects you could provide as examples of your work?

Follow the money. I am sure the companies who make these rounds are run by people who know people in positions of power in the government. It is just another way for the rich guys in congress to give some more money to their rich friends at the expense of the taxpayers.

Weave carpet. Sell for bitcoins. Send carpet to buyer.

Send bitcoins to associate in country with airplane making parts, EG Germany. Associate transfers funds from bitcoins to Euros, buys parts. Associate transports parts to you.

There are lots of ways which bitcoins can be used to move capital around, you just have to be creative.