Marihuana, spongebob squarepants and minecraft. The average hedge fund manager.
Lol, yes that is I. I don't smoke weed, but I do support it's legalization. I play video games... A lot now... for a living at that. I was laid off from my recent job at Capital One due to a relocation of one of their main buildings. I now live in Austin, playing video games as a game tester for Portalarium. I didn't know that we were 100% sure that Pirate was from TX. I find that interesting however!
I think this idea has a lot of potential to bring some much needed diversity to glbse.
The only problem I see is this rather unappetizing possibility.
1. Convert IPO BTC -> $
2. All assets are now in $.
3. BTC gains against $.
4. Cannot convert assets from $ -> BTC for even IPO price
Of course, the opposite can entirely happen. What do you think about this?
I thought about this and regardless of fluctuating BTC rates, you will always get the BTC deposited to YOU(the investor) within hours of the exchange happening. So you could in turn, sell the dividends on mt.gox (or where-ever) for a similar price. As you stated, the opposite could work in our favor and we could get more BTC per dollar. I imagine it will endlessly fluctuate. The goal is to reinvest ~25% back into the stock market so that we are also growing the amount per dollar that we get in return.
This is a great, and much needed idea.
However, I think you might be better off if you start small and just set up a simple BTC pass-through to some index ETFs, which would allow any investor in the world with BTC to gain exposure to SP500 or DJIA. This could be used to set up the initial trust. I only say this because anyone can claim to be a master stock-picker, but without a track record this is all just hot air.
The issue of BTCUSD appreciation is always going to be a problem, but as long as you are clear about it, there shouldn't be any. No money is actually lost if BTC appreciates, its just that it adds another element of risk, since simply holding BTC is possibly going to be more profitable than holding USD equities.
I thought about this, and basically it would be a pass through to the US stock market with a small fee (5%). I plan to invest in *MOSTLY* REIT's as they pay higher dividends and the housing market has already "bottomed" out. I know of a tobacco company that pays decent dividends. It also has a 5% annual split. I should probably add a disclaimer that splits will not have any payout of any kind. They will just stay in the account to help earn more dividends!(Which will be paid out)
If it helps any, I could possibly add in my own account statement. I'm currently housed at Options House. There isn't much activity on it, other than dividend payments. It's basically a high yielding savings account with a little more risk associated.
This is a great, and much needed idea.
However, I think you might be better off if you start small and just set up a simple BTC pass-through to some index ETFs, which would allow any investor in the world with BTC to gain exposure to SP500 or DJIA. This could be used to set up the initial trust. I only say this because anyone can claim to be a master stock-picker, but without a track record this is all just hot air.
The issue of BTCUSD appreciation is always going to be a problem, but as long as you are clear about it, there shouldn't be any. No money is actually lost if BTC appreciates, its just that it adds another element of risk, since simply holding BTC is possibly going to be more profitable than holding USD equities.
One idea is to hold 50% bitcoins and 50% in USD assets as a currency hedge.
I could do this, but then we would be "losing out" on dividend paymets. In the example that I used in the original post, you'd get
BTC0.002475 which might be a monthly payment. Someone could always create an insurance fund against my security if any kind of crash/panic was to happen.
Good luck with SEC and others
Add fiat:btc risk and I'll say thank you but no.
I thought about the SEC and I don't see anything wrong. The cash dividends are paid out to me, I pay taxes on them, then it's "my money" to do what I want with. It then goes to my bank account (paper trail) then to dwolla (paper trail) and then to Mt.Gox(paper trail). I don't think there is anything wrong with this, as long as I act within the law. There were other threads created to argue about SEC, GLBSE, and other trading laws in other countries. Let's not turn this thread into an argument about legality.. There are other threads that are already created for that.
Thank you for your feedback thus far!
