[Havelock] Bitcoin Difficulty Derivative (BDD)

[twentyseventy]

Period 25, Day 9 Report - November 28, 2014

Balance Post Divs: BTC 200.98056579

Total Units: 19658

NAV/U: BTC 0.01022385

[1714630095]

1714630095

[twentyseventy]

Period 25, Day 10 Report - November 29, 2014

Balance Post Divs: BTC 199.75410317

Total Units: 19658

NAV/U: BTC 0.01016146

[twentyseventy]

Period 25, Day 11 Report - November 30, 2014

Balance Post Divs: BTC 198.52764055

Total Units: 19658

NAV/U: BTC 0.01009907

[twentyseventy]

Period 25, Day 12 Report - December 1, 2014

Balance Post Divs: BTC 197.44193861

Total Units: 19671

NAV/U: BTC 0.01003720

[twentyseventy]

Period 25, Day 13 Report - December 2, 2014

Balance Post Divs: BTC 196.25797589

Total Units: 19675

NAV/U: BTC 0.00997499

Difficulty will change later tonight - very excited to see if it will be a decrease!

[twentyseventy]

Very exciting to see a Difficulty decrease! Even if it was less than a 1% decrease, I believe that it finally signals the end of the end of the mining boom started by the run-up to $1,000. I know that new equipment is coming, however-

For the first time in BDD history (11 months now) MINE holders will receive more per day this Period than the Period before! Enjoy it, MINErs

The fund now holds about 158 days worth of dividends at the current dividend rate. I have reflected my repayment of the management fee overpayment this round in the 'Less Fees' field.

Period 25 End Report - December 3, 2014


Previous Units              18550
EXCH Sold                   1127
Less Buybacks              0
New Total Units        19677

Previous Balance          200.83108274
Price per EXCH             0.01115126
Gross Sales of EXCH      12.56747002

Less Fees                    0.03397064
Less Dividends              16.84080792
Less Buybacks              0.00000000
Less Mgmt Fee              0.24401804
Net Balance            196.27975616

End of Period NAV/U     0.00997508

New Difficulty                  40,007,470,271
New Daily Dividend         0.00006285
New Reserve per Unit        0.01257000

New Reserve Less NAV/U = 0.01257000 - 0.00997508 = -0.00259492


SELL Dividend                 None (Because NAV/U is less than 200 Days of Dividends)

Days of Dividends On Hand    ~158.7

You'll notice that I calculate the new Dividend to eight digits and multiply that times 200 Days to get the new Reserve. Those of you that did your own calculations may come up with a slightly different number if you chose not to round or to round elsewhere.

New EXCH Sales Price          0.01027433

[twentyseventy]

Period 26, Day 0 Report - December 3, 2014

Balance Post Divs: BTC 195.04305671

Total Units: 19677

NAV/U: BTC 0.00991223

[twentyseventy]

Period 26, Day 1 Report - December 4, 2014

Balance Post Divs: BTC 194.55417346

Total Units: 19752

NAV/U: BTC 0.009849846

[twentyseventy]

Period 26, Day 2 Report - December 5, 2014

Balance Post Divs: BTC 194.30984853

Total Units: 19852

NAV/U: BTC 0.00978792

[twentyseventy]

Period 26, Day 3 Report - December 6, 2014

Balance Post Divs: BTC 193.06215033

Total Units: 19852

NAV/U: BTC 0.00972507

[twentyseventy]

Period 26, Day 4 Report - December 7, 2014

Balance Post Divs: BTC 191.88424831

Total Units: 19859

NAV/U: BTC 0.00966233

[twentyseventy]

Period 26, Day 5 Report - December 8, 2014

Balance Post Divs: BTC 192.20153874

Total Units: 20016

NAV/U: BTC 0.00960239

[twentyseventy]

Period 26, Day 6 Report - December 9, 2014

Balance Post Divs: BTC 190.98341667

Total Units: 20020

NAV/U: BTC 0.00953963

[twentyseventy]

Period 26, Day 7 Report - December 10, 2014

Balance Post Divs: BTC 189.72515967

Total Units: 20020

NAV/U: BTC 0.00947678

[twentyseventy]

Period 26, Day 8 Report - December 11, 2014

Balance Post Divs: BTC 188.46690267

Total Units: 20020

NAV/U: BTC 0.00941393

[jjdub7]

Period 26, Day 8 Report - December 11, 2014

Balance Post Divs: BTC 188.46690267

Total Units: 20020

NAV/U: BTC 0.00941393

For real, this current generation of ASICS supporting the network is so, ungrasp-ably inefficient compared to what's about to hit that the overall network hashrate might actually contract again in aggregate to force the price down closer to a new marginal cost of electric power = marginal revenue at market equilibrium at an even lower (!!) market price.  If that theory's correct - it's all forex rate effects that would be in effect and this asset (B.MINE) goes on to ROI plus pay out indefinite dividends based on whatever new entrants are willing to pay for B.EXCH as the door price to buy-in...at what point would B.MINE's potential dividends be terminated?  Because that's just such a perfect scenario to become a Ponzi bond after a certain point...

[twentyseventy]

Period 26, Day 8 Report - December 11, 2014

Balance Post Divs: BTC 188.46690267

Total Units: 20020

NAV/U: BTC 0.00941393

For real, this current generation of ASICS supporting the network is so, ungrasp-ably inefficient compared to what's about to hit that the overall network hashrate might actually contract again in aggregate to force the price down closer to a new marginal cost of electric power = marginal revenue at market equilibrium at an even lower (!!) market price.  If that theory's correct - it's all forex rate effects that would be in effect and this asset (B.MINE) goes on to ROI plus pay out indefinite dividends based on whatever new entrants are willing to pay for B.EXCH as the door price to buy-in...at what point would B.MINE's potential dividends be terminated?  Because that's just such a perfect scenario to become a Ponzi bond after a certain point...

I think that the leveling of the difficulty is a sign that the mining ecosystem is has finally flushed out all of the influx brought on by the rise to $1000 last year. During that time, people piled money into developing new ASICs and they have been coming out over the last 6-9 months.

I believe that there is new hardware coming online in the next few months, so I don't expect it to stay flat for too long. MINE will pay out dividends for as long as there are .0002 BTC per share available to do so. There might be a small period near the end where people could do this, but I think it would be so small of a profit to be made, if any, to justify it.

[twentyseventy]

Period 26, Day 9 Report - December 12, 2014

Balance Post Divs: BTC 187.20864567

Total Units: 20020

NAV/U: BTC 0.00935108

[jjdub7]

To mechanize the fund more quickly at this point, would you be able to update the B.EXCH price after every 1008 blocks to accommodate for the order-of-magnitude difference in price-to-time that's beginning to emerge?

[twentyseventy]

Period 26, Day 10 Report - December 13, 2014

Balance Post Divs: BTC 186.38910751

Total Units: 20064

NAV/U: BTC 0.00928972