[Havelock] Bitcoin Difficulty Derivative (BDD)

[junkonator]

Cool that you quote this exact post. This one honestly hit me like a truck back then. I thought I had DMS figured through and through but those were several paragraphs of news to me!

[twentyseventy]

Cool that you quote this exact post. This one honestly hit me like a truck back then. I thought I had DMS figured through and through but those were several paragraphs of news to me!

I felt the same way! It seems somewhat obvious in retrospect now, but you can tell that even he felt that he was 'giving something away' when he said it.

[RoninMD]

It's August.  Looks like people are cashing out of bitcoin to pay for school supplies. Same thing happening at the stock markets.

[twentyseventy]

Period 16 End Report - August 8, 2014


Previous Units              12515
EXCH Sold                   262
Less Buybacks              0
New Total Units            12777

Previous Balance          328.26220943
Price per EXCH             0.02701639
Gross Sales of EXCH      7.07829418

Less Fees                    0.02831328
Less Dividends              22.18017340
Less Buybacks              0
Less Mgmt Fee              0.13744258
Net Balance                  312.99457435

End of Period NAV/U     0.02449671

New Difficulty                  19,729,645,941
New Daily Dividend         0.00012744
New Reserve per Unit        0.02548800

NAV/U Less New Reserve = 0.02449671 - 0.02548800= -0.00099129

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

Days of Dividends On Hand    ~192

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          0.02523161

[twentyseventy]

Period 17, Day 0 Report - August 8, 2014

Balance Post Divs: BTC 311.36627347

Total Units: 12777

NAV/U: BTC 0.02436927

[twentyseventy]

2014-08-08 12:03:57    dividend          B.MINE    ฿0.06907248
2014-08-08 12:02:16    sell    200    ฿0.01475000    B.MINE   

The dividents ware a little bit late, but I am sure you will correct it.

Dividends are run automatically on Havelock's script, I don't have control of the exact timing that dividends are issued. They actually always run a little after Noon.

Dividends are paid to whomever holds the MINE share at that time, so the new holder of the MINE shares received the dividends, as they should have. Just like SELL divs, be sure that they've been paid that day before selling on the market.

[twentyseventy]

2014-08-08 12:03:57    dividend          B.MINE    ฿0.06907248
2014-08-08 12:02:16    sell    200    ฿0.01475000    B.MINE   

The dividents ware a little bit late, but I am sure you will correct it.

Dividends are run automatically on Havelock's script, I don't have control of the exact timing that dividends are issued. They actually always run a little after Noon.

Dividends are paid to whomever holds the MINE share at that time, so the new holder of the MINE shares received the dividends, as they should have. Just like SELL divs, be sure that they've been paid that day before selling on the market.

I am surprised - you did manual corrections in similar situations.

OK, then please correct your declaration at "Overview" section here:
https://www.havelockinvestments.com/fund.php?symbol=B.MINE:

"B.MINE allows its holder to receive daily dividends of the theoretical mining output of a 5GH/s Bitcoin miner. Dividends will be paid to holders of B.MINE at 12:00PM Eastern Time each day. "

so nobody else will be in my situation - loss of 0.025 BTC for 100 seconds

I have done manual corrections when there was an error made on my part. However, this is a standard occurrence that dividends are paid soon after Noon and not exactly at 12:00PM ET, so there was no error made on my part here.

From the contract:

Dividend Payout Times
All reasonable care will be taken to pay out dividends on time. In the event that the Manager is available to pay out dividends on time, for any reason, then dividends will be paid out as soon as possible afterwards. The holders of the contracts are entitled to receive dividends at the time that the Manager pays the dividends, not at the scheduled time at which dividends are normally paid.

It's the same situation as if a SELL holder had sold the shares before the dividends were paid - you have to ensure that you see the dividends in your account, don't rely on the time to see if they've been paid yet.

[ddalex]

From the contract:

Dividend Payout Times
All reasonable care will be taken to pay out dividends on time. In the event that the Manager is available to pay out dividends on time, for any reason, then dividends will be paid out as soon as possible afterwards. The holders of the contracts are entitled to receive dividends at the time that the Manager pays the dividends, not at the scheduled time at which dividends are normally paid.

It's the same situation as if a SELL holder had sold the shares before the dividends were paid - you have to ensure that you see the dividends in your account, don't rely on the time to see if they've been paid yet.

OK, This was my error, a misunderstanding. Sorry, merci for your answers
I deleted my garbage.
I like B.MINE and B.SELL, it's better than ASIC-mining or Cloud-mining

[twentyseventy]

From the contract:

Dividend Payout Times
All reasonable care will be taken to pay out dividends on time. In the event that the Manager is available to pay out dividends on time, for any reason, then dividends will be paid out as soon as possible afterwards. The holders of the contracts are entitled to receive dividends at the time that the Manager pays the dividends, not at the scheduled time at which dividends are normally paid.

It's the same situation as if a SELL holder had sold the shares before the dividends were paid - you have to ensure that you see the dividends in your account, don't rely on the time to see if they've been paid yet.

OK, This was my error, a misunderstanding. Sorry, merci for your answers
I like B.MINE and B.SELL, it's better than ASIC-mining or Cloud-mining

No problem, I just wanted to be sure that you understood why. I don't want anyone to feel like they were getting cheated; the dividends are always paid a bit after Noon, as the script just runs a little bit after 12PM

[twentyseventy]

Period 17, Day 1 Report - August 9, 2014

Balance Post Divs: BTC 308.17017955

Total Units: 12711

NAV/U: BTC 0.02424436

[twentyseventy]

Period 17, Day 2 Report - August 10, 2014

Balance Post Divs: BTC 308.36427491

Total Units: 12785

NAV/U: BTC 0.02411922

[twentyseventy]

Period 17, Day 3 Report - August 11, 2014

Balance Post Divs: BTC 313.67222224

Total Units: 13068

NAV/U: BTC 0.02400307

[twentyseventy]

Period 17, Day 4 Report - August 12, 2014

Balance Post Divs: BTC 330.36730817

Total Units: 13817

NAV/U: BTC 0.02391020

[bitcoinjer]

Hi I'm fairly new here, but mostly invested in b mine. Any idea why we've seen such a big change over the last 3 days?

[ZephramC]

Hi I'm fairly new here, but mostly invested in b mine. Any idea why we've seen such a big change over the last 3 days?

Probably much of the new mining equipment (ASICs) is coming online. Also note that if hashrate increases, dividend yield of B.MINE decreases.

[twentyseventy]

Period 17, Day 5 Report - August 13, 2014

Balance Post Divs: BTC 328.60646969

Total Units: 13817

NAV/U: BTC 0.02378276

[dyask]

Hi I'm fairly new here, but mostly invested in b mine. Any idea why we've seen such a big change over the last 3 days?

B.Mine has had an over extended winning streak because of the lower difficulty changes.   This upcoming difficulty change looks like it will be larger, so people are moving out of B.Mine and maybe into B.Sell.   Anyway if you want to make BTC you have to pay attention to the difficulty.  https://bitcoinwisdom.com/bitcoin/difficulty is a good place to start.

As was  stated before, when the difficulty goes up the dividend will go down.   That in turn means that B.Mine is worth less.   If you look at the charts you will see that B.Mine has been dropping in price often.   The trick is to buy when it is at a very low price compared to what it is paying. 

[Lohoris]

The trick is to buy when it is at a very low price compared to what it is paying. 

Like with any other security, actually.

[jjdub7]

The trick is to buy when it is at a very low price compared to what it is paying. 

http://en.wikipedia.org/wiki/Optimal_control

[NotLambchop]

@TwentySeventy:  Are you getting your daily divs from ABitInterested?  Everything good there?

Sorry to barge in on your thread and forgive me for being somewhat indiscreet, but I'm ABitWorried about him.  All the health problems his family is having...  He's a strong, proud man; not one to drag his personal troubles into his legit internet and offline businessesesses.  But even the strong need a shoulder to lean on in these trying times, and I can't help but feel it would be cold of me not to extend an offer of help in his hour of need.

He trusts and confides in you, I just couldn't think of a better person to ask.  I hope you understand.

Sincerely yours,
  ~NotLambchop