[Havelock] Bitcoin Difficulty Derivative (BDD)

[twentyseventy]

Period 26, Day 11 Report - December 14, 2014

Balance Post Divs: BTC 185.12808511

Total Units: 20064

NAV/U: BTC 0.00922687

[1714629304]

1714629304

[twentyseventy]

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?

It's definitely something I'd consider - my main reason for not updating daily is that I didn't want people to be sitting around waiting for me to change it each day. I post most updates around noon, and almost always same day, but I didn't want to put too much pressure on myself to have to be at the computer every day at noon for that.

However, at the moment, anything is probably better than not updating at all during the period. It won't significantly impact holders of either MINE or SELL; it does result in less overall BTC moving into the fund for each unit of EXCH sold (because it will be daily NAV/U plus 3% not starting-Period-NAV/U plus 3%, but it will likely result in more sales overall because it's much easier for the bids of MINE and SELL to add up to more than that, causing the arbitrage opportunity.

I think that I can do this without too much tweaking with the understanding that the EXCH ask will be updated at the same time as the report is issued - this will be around Noon as much as possible, but it's not a guarantee. Still a better deal for buyers of EXCH in any case. 

[twentyseventy]

Period 26, Day 12 Report - December 15, 2014

Balance Post Divs: BTC 183.86706271

Total Units: 20064

NAV/U: BTC 0.00916402

Wasn't able to log in yesterday due to 2FA issues, have now corrected. Dividends will pay normally today; difficulty looks to be changing around midnight tonight. I will be traveling tomorrow, so the report will be issued tomorrow evening. Depending on what kind of time I have, I may remove the EXCH ask or leave it up - the difficulty change looks to be very small so it will not be a very significant change.

Starting tomorrow, I will start running a trial of updating the EXCH price every day. We'll do this for a period and see how it goes. If it doesn't prove to be too onerous, I will go ahead and make the change permanent.

[twentyseventy]

Period 26, Day 13 Report - December 16, 2014

Balance Post Divs: BTC 182.61601119

Total Units: 20065

NAV/U: BTC 0.00910122

Again, please see note from yesterday regarding EXCH ask calculations and the report for tomorrow.

[twentyseventy]

Period 26 End Report - December 17, 2014


Previous Units              19677
EXCH Sold                   388
Less Buybacks              0
New Total Units        20065

Previous Balance          196.27975616
Price per EXCH             0.01027433
Gross Sales of EXCH      3.98644004

Less Fees                    0.01594576
Less Dividends              17.55683325
Less Buybacks              0.00000000
Less Mgmt Fee              0.07740600
Net Balance            182.61601119

End of Period NAV/U     0.00910122

New Difficulty                  39,457,671,307
New Daily Dividend         0.00006372
New Reserve per Unit        0.01274400

New Reserve Less NAV/U = 0.01274400 - 0.00910122 = -0.00364278


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

Days of Dividends On Hand    ~142.9

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 Starting Price          0.00937426

As mentioned, I will be updating the EXCH Sales price each day at the Daily NAV/U + 3% for a trial run this Period.

[twentyseventy]

Period 27, Day 0 Report - December 17, 2014

Balance Post Divs: BTC 181.33746939

Total Units: 20065

NAV/U: BTC 0.00903750

[junkonator]

Period 27, Day 0 Report - December 17, 2014

Balance Post Divs: BTC 181.33746939

Total Units: 20065

NAV/U: BTC 0.00903750

Nav/U 0.00903750 * 1.03 != "New EXCH Sales Starting Price          0.00937426"

Is it off by one dividend?

[ajw7989]

I am surprised the trade activity for this is so low. With the decreasing price of bitcoin maintenance fees are rising. This security does not have maintenance fees so pays much better currently.

[twentyseventy]

Period 27, Day 0 Report - December 17, 2014

Balance Post Divs: BTC 181.33746939

Total Units: 20065

NAV/U: BTC 0.00903750

Nav/U 0.00903750 * 1.03 != "New EXCH Sales Starting Price          0.00937426"

Is it off by one dividend?

You're absolutely right, that's what it was - I had put up the EXCH ask for the Period NAV/U plus 3% instead of the NAV/U after dividend plus 3%. This will now be corrected as I post the new one today, thanks-

[twentyseventy]

Period 27, Day 1 Report - December 18, 2014

Balance Post Divs: BTC 180.54216320

Total Units: 20118

NAV/U: BTC 0.00897416

[pumawolf]

I am surprised the trade activity for this is so low. With the decreasing price of bitcoin maintenance fees are rising. This security does not have maintenance fees so pays much better currently.

me 2  but , but at the same time i see so much more hype surrounding amhash, its clearly stealing   bdd's thunder.

to me bdd  is the real  pbmining.   this is how ur suppose to run a pbmining. maybe u guys should advertise ,"the real pbmining" ahahh.

[jjdub7]

I am surprised the trade activity for this is so low. With the decreasing price of bitcoin maintenance fees are rising. This security does not have maintenance fees so pays much better currently.

The reason its priced low should be obvious.  If the next generation of mining hardware causes a spike, the mining bond will become worthless as EVERYONE that owns those 20175 bonds runs the market as soon as the hashing power shows up on the network...there's only downside to the bond anymore: ~10% upside on B.MINE at the lowest ask vs. potential ~800% upside on SELL (with an existentially lower probability of paying out, yes)

Now...SELL on the other hand...enormous risk, but well, well worth it if it pays out

[2jesters]

Since the PBMining disaster, I've been looking for other mining solutions. So far BDD (B.Mine) seems the best for "right now".

Just looked at Amhash and can not believe anyone would invest in them. Their price is ~25% less than BDD as of this posting, but they charge a maintenance fee that's ~32.5% of payout. So to save ~25% on purchase price, you lose ~32.5% of what you mine daily.

As an example: If you purchased 250 ghashes from Amhash and after the maintenance fee, in effect you would only have the mining power of 167.5 ghashes. Where with BDD, if you purchase 50 units your mining power (even though its not true mining) is 250 ghashes. That's 82.5 less ghashes!!! At today's difficulty that's a lost of 0.03200507 BTC a month.

I guess most people only look at the purchase price, and I agree 0.0012/gh looks better than 0.00161/gh. But, you have to look at the total cost involved.

Has anyone found anything better than BDD?

[twentyseventy]

Since the PBMining disaster, I've been looking for other mining solutions. So far BDD (B.Mine) seems the best for "right now".

Just looked at Amhash and can not believe anyone would invest in them. Their price is ~25% less than BDD as of this posting, but they charge a maintenance fee that's ~32.5% of payout. So to save ~25% on purchase price, you lose ~32.5% of what you mine daily.

As an example: If you purchased 250 ghashes from Amhash and after the maintenance fee, in effect you would only have the mining power of 167.5 ghashes. Where with BDD, if you purchase 50 units your mining power (even though its not true mining) is 250 ghashes. That's 82.5 less ghashes!!! At today's difficulty that's a lost of 0.03200507 BTC a month.

I guess most people only look at the purchase price, and I agree 0.0012/gh looks better than 0.00161/gh. But, you have to look at the total cost involved.

Has anyone found anything better than BDD?

True, you do get more hashrate per BTC, but you do have to remember that the total amount that can be paid out to MINE holders is roughly the NAV/U at the moment - the maximum return on MINE right now is about 10% as jjddub7 said.

[twentyseventy]

Period 27, Day 2 Report - December 19, 2014

Balance Post Divs: BTC 179.77704512

Total Units: 20175

NAV/U: BTC 0.00891088

[2jesters]

Since the PBMining disaster, I've been looking for other mining solutions. So far BDD (B.Mine) seems the best for "right now".

Just looked at Amhash and can not believe anyone would invest in them. Their price is ~25% less than BDD as of this posting, but they charge a maintenance fee that's ~32.5% of payout. So to save ~25% on purchase price, you lose ~32.5% of what you mine daily.

As an example: If you purchased 250 ghashes from Amhash and after the maintenance fee, in effect you would only have the mining power of 167.5 ghashes. Where with BDD, if you purchase 50 units your mining power (even though its not true mining) is 250 ghashes. That's 82.5 less ghashes!!! At today's difficulty that's a lost of 0.03200507 BTC a month.

I guess most people only look at the purchase price, and I agree 0.0012/gh looks better than 0.00161/gh. But, you have to look at the total cost involved.

Has anyone found anything better than BDD?

True, you do get more hashrate per BTC, but you do have to remember that the total amount that can be paid out to MINE holders is roughly the NAV/U at the moment - the maximum return on MINE right now is about 10% as jjddub7 said.

Thanks for the heads up.  Dumb me, I forgot to take into account the NAV/U value.

[ponder]

Since the PBMining disaster, I've been looking for other mining solutions. So far BDD (B.Mine) seems the best for "right now".

Just looked at Amhash and can not believe anyone would invest in them. Their price is ~25% less than BDD as of this posting, but they charge a maintenance fee that's ~32.5% of payout. So to save ~25% on purchase price, you lose ~32.5% of what you mine daily.

As an example: If you purchased 250 ghashes from Amhash and after the maintenance fee, in effect you would only have the mining power of 167.5 ghashes. Where with BDD, if you purchase 50 units your mining power (even though its not true mining) is 250 ghashes. That's 82.5 less ghashes!!! At today's difficulty that's a lost of 0.03200507 BTC a month.

I guess most people only look at the purchase price, and I agree 0.0012/gh looks better than 0.00161/gh. But, you have to look at the total cost involved.

Has anyone found anything better than BDD?

True, you do get more hashrate per BTC, but you do have to remember that the total amount that can be paid out to MINE holders is roughly the NAV/U at the moment - the maximum return on MINE right now is about 10% as jjddub7 said.

so in lamens terms, what's the limit, the amount of available units purchased only?

[Mabsark]

Since the PBMining disaster, I've been looking for other mining solutions. So far BDD (B.Mine) seems the best for "right now".

BDD has 0 hashing power. Mining does more than just earn money, it secures the network and processes transactions. BDD is an interesting gambling game, but it's not a mining solution. You're probably aware of that but I thought I'd point it out just in case you're not.

[pumawolf]

does the NAV/U   , increase when more people buy in.

[jjdub7]

does the NAV/U   , increase when more people buy in.

It essentially increases when one or a pair of people decide that the bid for SELL and MINE, conversely, are overvalued for the asset and buy EXCH to knock off the bid.