[GLBSE] BitSplit - not only a mining project

[Uglux]

edit:
Unfortunately, GLBSE has been closed.
I will return Bitcoins to people who bought shares, as soon as the situation is more clear.

[chriswen]

This whole things sounds HYIP.  First you make it really complicated.

I don't exactly understand the whole thing.

But, I understand one thing for sure.  What you're doing is basically a ponzi.

Regular ponzi
-new payments are used to pay old members

Your ponzi
-new money is invested in hardware
-part of money produced by hardware is given to old members.

[puffn]

This whole things sounds HYIP.  First you make it really complicated.

I don't exactly understand the whole thing.

But, I understand one thing for sure.  What you're doing is basically a ponzi.

Regular ponzi
-new payments are used to pay old members

Your ponzi
-new money is invested in hardware
-part of money produced by hardware is given to old members.

Agreed. I hate that bitcoin mining is trying to use sustainable sources. My utility company has a pretty sustainable business plan.

Stop trying to vertically integrate. You are only lowering the ROI by doing so.

[Bitcoin Oz]

[chriswen]

Also, as puffn metioned energy is quite useless.

In your method energy is artificially making money.  First of all, cause its a really un competitive market.  You have one dedicated customer.

Also, I may be wrong but, it seems like when you but, a mining stock you're getting 50% of mining profit and 50% energy profit.

[Uglux]

First you make it really complicated.

I don't exactly understand the whole thing.

Maybe you are right. I removed the energy part from the sketch to avoid more confusion. But the post was just an abstraction of my thoughts. Just like Bitcoin is some sort of an abstraction of computer data. It takes time to understand it and I will try my best, to explain the thought process behind BitSplit.

Your ponzi system
-new money is invested in hardware
-part of money produced by hardware is given to old members.

FTFY. And what is bad about it? It is a certain part of the money. Half actually. A fair split.

[Uglux]

I hate that bitcoin mining is trying to use sustainable sources.

Either there is a misunderstanding or your usage of energy sources lacks responsibility. The transition to renewable energy sources, in this case used for mining bitcoins, is the only way to eliminate the insane waste of ending resources. Eventually, the whole process of mining is quite banal: simply heat and data is generated. The growth and the operation of the network has to be as sustainable as possible, otherwise it is doomed to an existence as a large hungry monster...By removing the dependence on fossil/nuclear energy sources, another point of failure is removed from the system. The decentralized production of electricity can be in perfect harmony with the decentralized production of bitcoins/money.

[misterbigg]

Definition:

"BitSplit" - You hand over your "Bit" coins, and the owner "Splits" with your money!

[puffn]

I hate that bitcoin mining is trying to use sustainable sources.

Either there is a misunderstanding or your usage of energy sources lacks responsibility. The transition to renewable energy sources, in this case used for mining bitcoins, is the only way to eliminate the insane waste of ending resources. Eventually, the whole process of mining is quite banal: simply heat and data is generated. The growth and the operation of the network has to be as sustainable as possible, otherwise it is doomed to an existence as a large hungry monster...By removing the dependence on fossil/nuclear energy sources, another point of failure is removed from the system. The decentralized production of electricity can be in perfect harmony with the decentralized production of bitcoins/money.

The total benefit today of taking action to stop global warming is something like 4% per dollar spent. An ROI of -96%. Bring ideas like this back to me when it is 1:1.

[Bitcoin Oz]

Definition:

"BitSplit" - You hand over your "Bit" coins, and the owner "Splits" with your money!

Correct.

Im adding this to my list of "securities to avoid".