[TAT.VIRTUALMINE]

[Lytse]

The only thing that determines the market price of the asset is the market, supply and demand. And with an increasing difficulty, the dividends go down and therefore people are willing to pay less for the asset.

It's all very transparent.

There are two other values that can be found in the contract under buyback rights.

Personally I wonder what happens if TAT fails to pay out a coupon.

[Rannasha]

The only thing that determines the market price of the asset is the market, supply and demand. And with an increasing difficulty, the dividends go down and therefore people are willing to pay less for the asset.

It's all very transparent.

There are two other values that can be found in the contract under buyback rights.

Buyback rights are rights that TAT has. If he decides, for whatever reason, that he doesn't want to operate the fund anymore, he can buy shares back at 110% of the most highest trade price in the last week or at 200 times the most recent dividend (his choice, so that means whichever is lower).

There is no guarantee that a buyback will occur, nor is there an option for an asset holder to enforce such a buyback. The right lies solely with the issuer.

Personally I wonder what happens if TAT fails to pay out a coupon.

The same thing that would happen with any other asset that fails to deliver on its promises, confidence drops and so will prices. Scam accusations will be made.

By buying this asset, you put trust in TAT to honour the terms of the contract. With any asset, you should only buy it if you trust the issuer not to run with your funds.

[drdanishkhan]

Not much confidence in the asset out there.. TAT needs to do something to save this asset or else its goin down.. hard..

[ThickAsThieves]

I just want to take a few minutes to address how some people are asking me about why TAT.VM market price has fallen this week.

In summary:

1. Difficulty has risen by greater than 20% two times in a row now. I'm not sure if that's a record, but it's certainly much faster than anything I can recall this year. When difficulty rises, the dividend goes down, and thus the fundamental value of pretty much ALL mining assets go down.

2. The market has a new, extremely low-priced competitor. I suspect many people have sold off their TAT.VM at a psuedo-loss in order to buy cheaper assets elsewhere. Really, this is probably the biggest factor. However, this is the nature of being in a competitive market. If demand is high, others come in and undercut you if they can.

3. I have spelled out very clearly how this asset works. It, like pretty much all bitcoin investments, is high risk. Trading this asset properly is all about timing. Buy at the right time, hold for the right amount of time, sell at the right time. Many, many shareholders have played this asset to success.

This asset states its purpose very plainly in the description:

Code:

This is asset is being offered for the following purposes:
1. To provide the most affordable and competitive alternative to other mining assets currently available.
2. To provide an easy choice for investors to earn mining rewards without the responsibility and hassle of running personal mining rigs and farms.

If you buy this because you want to simulate mining, and find TAT.VM's price for 1mh/s to be acceptable, great. But if difficulty spikes cause devaluation, or if new competitors in the asset or mining market spur selloffs, and your main concern is share price, then you need to stay savvy. The market price of TAT.VM held quite remarkably considering the recent diff changes, but the new assets on the market really pulled things downward.

In closing, please understand what you are buying when you buy bitcoin assets. I still get people asking me how dividends are determined even though the formula is already listed.

TAT.VM is virtual hashes, nothing more, nothing less. I will continue to deliver dividends on those hashes, in accordance to the contract. It is up to the trader to know whether it is right for them, and how/when to trade it.

EDIT: All mining of all kinds are currently depreciating. Hardware loses value when better hardware is made and difficulty goes up also. There is nothing to "save" it in that sense. However, this will NOT affect my ability to pay the daily coupons, and you can expect to get the payouts for the hashes you bought as detailed in the contract.

[ArcticWolf]

Ok I did a little math. At the current difficulty and with the current dividend, it will take IPO buyers 76 days to recoup the losses they have sustained from the IPO price.

Oh well, live and learn

[🏰 TradeFortress 🏰]

That's kinda the problem when you offer investments that are zero sum games - either you make a profit (and piss off your investors who made a loss), or you make a loss (but your investors make a profit).

[drdanishkhan]

looks like its the first case here.. investors seem pissed.. and the indifferent attitude of TAT isnt helping either..

[ArcticWolf]

looks like its the first case here.. investors seem pissed.. and the indifferent attitude of TAT isnt helping either..

I wouldnt say indifferent. The market is doing its thing, there isnt really anything he can do.

[drdanishkhan]

He can assure his investors a higher dividend.. take a chip out from his profits from asicminer and try build up the confidence in the market.. thats would i would have done if i really cared about the asset and the people who put their trust in him..
All he would do is show the agreement in bold.. thats indifference my brother..

[TaxReturn]

He can assure his investors a higher dividend.. take a chip out from his profits from asicminer and try build up the confidence in the market.. thats would i would have done if i really cared about the asset and the people who put their trust in him..
All he would do is show the agreement in bold.. thats indifference my brother..

That is ridiculous. The exact conditions of the bond were clear right from the start. Anyone who expects consolation prizes or goodwill gifts shouldn't go anywhere near stocks, bonds or money business in general.

[bitcoinplay]

Thanks Thief You have just lost me money. I am selling your asicminer pt shares, and I am not doing business with you again.

[Rannasha]

He can assure his investors a higher dividend.. take a chip out from his profits from asicminer and try build up the confidence in the market.. thats would i would have done if i really cared about the asset and the people who put their trust in him..
All he would do is show the agreement in bold.. thats indifference my brother..

I guess you would also complain to an ASIC manufacturer if the ASIC you bought starts to yield less returns due to increase in difficulty?

This asset works the same as mining BTC yourself. You buy something that produces periodic mining yields, depending on the difficulty and you may resell it for whatever the market is willing to pay.

If you don't take into account the risk of increased difficulty and its effect on dividend and asset-price, you have only yourself to blame. The terms of this asset are extremely clear and without unnecessary technical jargon. And any small amount of research into BTC mining would've revealed the strong upward trend of difficulty and the corresponding downward trend of yields.

It sounds like you were expecting an infinite stream of constant payments out of this, while at any point being able to step out and collect your profits. Investments don't work that way.

[bitcoinplay]

This asset is rigged from the start, while it is not illegal for him to do this, and it is not scamming, he is getting money from investors who believed in his name.

I am no longer doing any business with him.

[Rannasha]

This asset is rigged from the start, while it is not illegal for him to do this, and it is not scamming, he is getting money from investors who believed in his name.

You mean investors that don't read the contract and/or are not capable of independent thought?

[eltopo]

He can assure his investors a higher dividend.. take a chip out from his profits from asicminer and try build up the confidence in the market.. thats would i would have done if i really cared about the asset and the people who put their trust in him..
All he would do is show the agreement in bold.. thats indifference my brother..

That's ridiculous. Investors simply buy a 1mh/s bond. With rising difficulty dividends will shrink, similarly will bond prices. Investors who don't understand this, shouldn't invest. Or ask Asicminer to stop mining for a few weeks.

[bitcoinplay]

This asset is rigged from the start, while it is not illegal for him to do this, and it is not scamming, he is getting money from investors who believed in his name.

You mean investors that don't read the contract and/or are not capable of independent thought?

Look there are some people where if I invest with them, I make money. For example, MP.

Now ThickAsTheives is one that will screw you over and screw his reputation over.

Is getting raped by my ex my fault too?

My 2 cents: avoid this dishonorable thief.

[drdanishkhan]

well we knew about the yield per bond but we did not expect the share prices to drop.. and that has nothing to do with difficulty..

[eltopo]

well we knew about the yield per bond but we did not expect the share prices to drop.. and that has nothing to do with difficulty..

If dividend goes down, the bond prices will as well to maintain the same yield for new investors. Noone pays 0.007 for the bond if dividend is cut down 20, 30 oder 40%

[bitcoinplay]

ThickAsThieves:

YOU have made profit from my loss. Yes, YOU. Nobody else did, if I lose a bitcoin YOU PROFITED ONE BITCOIN.

I demand a refund of my shares at the IPO price. You do not pay anything, you just have to give your profit back!

Now, this would be unreasonable if we both made profit. But only you made profit - it is only possible for you and only you to gain!

[drdanishkhan]

But at what rate?? since yesterday they have dropped down from 0.0057 to 0.0045.. thats huge.. the only thing is that TAT doesnt seem to care about saving this asset at all.. any kid of positive reinforcement would surely help stabilise the situation