Why would I buy an asset? Poll, discussion and help

[Hubus]

= 0.09999821
~ 0.1
= 10%

(0.02739726/100 + 1) ^ 365.2425 - 1
= 0.105229198
= 10.523 % != 10%.

OK, your calculation is more accurate, but isn't it interesting that, with these low numbers, compound interest doesn't really matter much? It's all in the lower part of the curve where the slope is very small.

With the current value of 1 HZ and my current capital it really doesn't matter at all...  

...But of course what matters is, if I buy an asset which doesn't pay at least 10 % dividends per year (preferably on a daily basis), because that means I miss the Horizon 10 % reward when buying such an asset.

[altsheets]

Yes, I agree with all of that.

[JPred]

Not all assets will be competing with HZ forging payouts of 10% a year, and not all assets have to either. With forging payouts and dividends you made in some dividend-paying assets, you can buy other valuable but not-dividend-paying assets. My 2 cents.

[Hubus]

Not all assets will be competing with HZ forging payouts of 10% a year, and not all assets have to either. With forging payouts and dividends you made in some dividend-paying assets, you can buy other valuable but not-dividend-paying assets. My 2 cents.

But on a pure financial basis point of view one will always look at the profits, and then - in my opinion - the assets will automatically compete with the Horizon 10 % "distribution reward"/interest. Plus extra profit by forging (the 10 % is not forging, it is for every owner of HZ coins). Don't you think so? This reward will of course end after about 1.5 years, when distribution stage is over. (At least this is how I understand the description of Horizon https://bitcointalk.org/index.php?topic=823785.0 .)

Of course it is possible (but not sure) that you can also profit from a non-dividend-paying asset. But you can calculate the profit (retrospectively only), and if it was less than 10% a year, it would have been better not to buy it and to just having kept your Horizon for the 10 % reward plus forging income.

Alternatively, you could buy an asset in another altcoin currency, e.g. NXT, until HZ distribution stage is over.

So in my opinion, either an asset has to surpass the 10% plus forging, or you buy for non-financial reasons (helping the asset issuer with his development etc.).

[JPred]

You've got a point, I agree. Forging and gaining 10% is actually a good return in itself even without assets being issued. And it is a sure thing too.

[Hubus]

You've got a point, I agree. Forging and gaining 10% is actually a good return in itself even without assets being issued. And it is a sure thing too.

exactly 

[Hubus]

These comments from https://bitcointalk.org/index.php?topic=823785.msg11012078#msg11012078 show, that obviously, some people believe in assets:

if it go back to 30 i will be happy to buy lot of thousand lol people selling under 100 are crazy

The whole assets thing is very undervalued because as I posted before most people just don't get it!! I think the price is extremely low but when you take the whole bitcoin/altcoin community and probably under 50% of them understand assets is the reason I believe this is still a very untouched market

I think quite a few are yet to distinguish between the Asset exchange and distributed exchange. I've seen a few comments from people here and there that the exchange is already released, some are talking about the D-ex token on the asset exchange, some about the asset exchange itself. Maybe time for some PR as I believe we're near release time.

+1

...but it reminds us that these are just opinions which have to be proven yet, everything seems to be about the future and nobody can see it. I would be interested in reports from people about assets which already pay off. And preferably are not scam (because ponzi schemes and bad businesses also pay off, if left at the right time). Moreover, the posts show that we have to understand each asset - so the asset issuers should really explain them well! Maybe this is not always the intention, some prefer secrecy, insider business and being the first. Well, I understand that, but of course we all want to know the secrets (until they are no more secrets ). Moreover, cryptic behaviour will not help spreading these systems.

[Hubus]

I have tried some assets for some time now (about two-three months) and will add some experiences/facts/opinions here (note that I calculated the dividends per year but have the assets only for some months, so changes might be possible):

NXT assets:

1) I bought the GlideSec asset, and it seemed to have extraordinary dividends (about 250 % per year compared to the price I paid for it) - and it was of course too good to be true, so I received this one and only dividend (for a week of course, not a year!) and then the whole thing was abandoned by the "developer" and turned out to be a scam.

2) Atomic asset: No income with dividends so far, no selling for a higher price possible so far. Maybe later?

3) Coinomat and Coinomat1: At least there is something going on and this project is not about empty promises. Personally, I get around 11-13 % (per year) dividends. But on the other hand, the price sank down much more, so I would not be able to sell it without a bigger loss.

4) Freemarket: Not much going on there so far. No dividends so far. Price declined so far. So: a loss so far.

5) Liquid: One of the best assets so far as the dividend for me personally (taking my buy price) is about 20 % p.a. AND the value of the asset increased.

6) Pangea: No dividends and a price loss for me, so far.

Horizon (HZ) assets:
(As mentioned earlier, all HZ assets currently have the problem that buying an asset means giving up the safe 10 % interest you get when you just store them in your account)

7) AAssetHZ: No dividends so far, asset is still new but never heard of any sales. Still, there seems to be some fantasy in it, as I bought early and could sell for a higher price which still seems stable but shows no movements at all in the last weeks.

8 ) HZxchange: The asset description promises weekly payouts, but no dividends and a price loss so far. But the project is still new and showed at least some progress in that it started.

9) HZChronos: No dividends planned. I could buy early enough and even though there are no results from the project so far, it is still young and I could sell for a higher price and win something. Buying price is still higher than issuing price.

BURST assets:

10) ByteBank: Quite good dividend around 24 % p.a., and the asset issuer placed a re-buy order near the issuing price. Good. But on the other hand, the value of BURST dropped.

11) BdeBank: Almost the same as ByteBank, but available at smaller units and no buy wall, so, a lower sell price.

12) ByteEnt: My best asset so far: Dividend about 30 % p.a. (in relation to my buy price, that would mean ROI in around three years) AND value increased slightly. Unfortunately, there is still this problem with the decreased BURST coin value which annihilates the profits.

The biggest income seems to be possible with buying an asset cheap (in most of the cases this is possible when you buy early, when the asset is new and just issued) and sell it at a high price. The funny thing about that is, that this might not require a long time nor a successful or trusted asset. On the contrary, "serious" assets might keep a "good" price over a longer time, but not necessarily extraordinary profits. I have watched some assets with (so far) reliable dividends of more than 20 % per year without causing a high attention of buyers and therefore with sometimes even declining prices. Instead, for a good buy/sale-return it is more important that you profit from the "hype", even if the asset never proved its functionality and is essentially bullshit or just sleeping for an indefinite time. So don't wait too long and try to sell it while there is some hype and fantasy in the minds of the buyers. Note that this is just my observation, I am not promoting this!

Some/many assets seem to be really just crowdfunding projects where the profits for investors may or may not come very much later. In my opinion, from the investor's point of view there is absolutely no reason to buy them fast and early unless you want to help this crowdfunding or unless you are so early that you can sell the asset soon for a better price again. But they are not worthy of buying and holding in the long term view as there will come later opportunities to buy them (again) when and if they (ever) start realizing their project goals.

One thing to be careful about is also the currency/coin-system where the asset is located: It's of no use if your asset pays e.g. 10 percent dividends and the price also rises to 110 percent, but the coin goes down 50 % at the same time. A realistic example, see above.