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danieldaniel
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November 05, 2011, 03:59:08 AM
Last edit: February 18, 2014, 02:23:39 PM by danieldaniel
 #1

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danieldaniel
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November 05, 2011, 04:52:36 AM
 #2

I will also be giving out dividends monthly.

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November 05, 2011, 12:48:26 PM
Last edit: November 05, 2011, 01:22:25 PM by mjcmurfy
 #3

This seems like a good business. We need more dedicated hosting options payable in bitcoin.

I think you are making it more difficult than is necessary for people to invest though.
You should have put more effort in at the start at getting the GLBSE contract right as it cannot be subsequently modified.

Quote from: bitdedi GLBSE contract
... the owners of these shares are the owners of the organisation, such that all assets held and profits earned by the organisation are the property of the shareholders.

50% of the profits earned by the organisation will be paid to shareholders as a dividend, such that these profits will be divided equally among all shares.

Dividends are to be paid on a quarterly basis.

A change in the organisations by laws (a link to which can be found elswhere in this contract) requires the approval of at least 51% of shares in a vote on the issue in a motion.

  • You are saying that 100% will be paid, but unfortunately, that will not be binding as you have stated 50% in the contract.
  • I think there might be a contradiction in there too. You first say that the profits earned by the organization are the property of the shareholders, but then go on to say that only 50% of the profits will be paid out, leaving 50% retained earnings. That means that only 50% of the profit of the company is the property of the shareholders, the other 50% is retained earnings - i.e the property of the company. I'm not sure, but does that not invalidate the first statement?
  • You said that dividends would be paid quarterly in the contact, but go on to say in this thread that they will be paid monthly. Again, not that it is of massive significance but just pointing out that it is not a binding agreement.
  • Despite what it says in the contract, there doesn't seem to be a link to any bylaws for the company. So it's stuck like that and cannot be amended.

I want to invest in this company, but I probably would not buy any of these certificates. Not that I don't trust you to keep your word, but the contract really has to be rock solid if you want to attract legitimate investors. You should probably redo it then list up a new contract.

I'll second all of Peter's questions and ask a few of my own:

1. What are the upload and download speeds of your network? Do you have any files we can test with?
2. What do you forsee people using these servers for?
3. How much do you charge for monthly plans?
4. How do you handle private data remaining on the server when the contracts expire?
5. Are there any usage limitations on what you will allow to be run on these servers?
6. Does any software come pre-installed, such as a HTTP server, FTP server, Mail server, VNC server or VPN server?
7. Does the windows license cost extra or the same price as centOs?
8. What remote access protocols do you allow RDP/SSH/VNC?
9. Do users get full root access to the OS?

I'll also probably think of more, but thats enough for now.

http://www.bitcointorrentz.com/images/bct_button_117_30.png - BitCoinTorrentz.com: High-speed HTTP torrent downloads. 0.05 btc/gb. Up to 50% discount with free membership!
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November 05, 2011, 03:21:27 PM
 #4

I have just a few questions before I invest?

What are you planning to use the money raised from sale of shares for?
Do you already have all the servers up and running?
How much would you estimate the monthly profit to be?
What location (country/region) do you run the servers in?
Are the servers in a dedicated facility, or are they in a common location?
How high are your utility bills?
Do you only accept bitcoins, or do you take other forms of payment as well?
Are there any other people involved in this company?

I'll probably think of more questions later.

Hey,
What are you planning to use the money raised from sale of shares for?
Since I have to have money in my paypal to pay for the servers, I would sell it and put it in my paypal (I could also put it into somewhere else and transfer to my bank, and then put in my paypal).

Do you already have all the servers up and running?
Yes, I do.

What location (country/region) do you run the servers in?
Miami, Florida

Are the servers in a dedicated facility, or are they in a common location?
They are in a dedicated datacenter.

How high are your utility bills?
I am not sure what you mean by this... do you mean the cost of the servers?  If so, I am renting them on-demand, and I am letting people pay for them with bitcoins.

Do you only accept bitcoins, or do you take other forms of payment as well?
Well, I guess I could take other forms... suggest some.  Smiley

Are there any other people involved in this company?
As of now, no.  I have found a few people (with good ratings) in #bitcoin-otc, but they have not responded yet.

I'll probably think of more questions later.
Dont hesitate to ask!  Smiley

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November 05, 2011, 03:27:55 PM
 #5

This seems like a good business. We need more dedicated hosting options payable in bitcoin.

I think you are making it more difficult than is necessary for people to invest though.
You should have put more effort in at the start at getting the GLBSE contract right as it cannot be subsequently modified.

Quote from: bitdedi GLBSE contract
... the owners of these shares are the owners of the organisation, such that all assets held and profits earned by the organisation are the property of the shareholders.

50% of the profits earned by the organisation will be paid to shareholders as a dividend, such that these profits will be divided equally among all shares.

Dividends are to be paid on a quarterly basis.

A change in the organisations by laws (a link to which can be found elswhere in this contract) requires the approval of at least 51% of shares in a vote on the issue in a motion.

  • You are saying that 100% will be paid, but unfortunately, that will not be binding as you have stated 50% in the contract.
  • I think there might be a contradiction in there too. You first say that the profits earned by the organization are the property of the shareholders, but then go on to say that only 50% of the profits will be paid out, leaving 50% retained earnings. That means that only 50% of the profit of the company is the property of the shareholders, the other 50% is retained earnings - i.e the property of the company. I'm not sure, but does that not invalidate the first statement?
  • You said that dividends would be paid quarterly in the contact, but go on to say in this thread that they will be paid monthly. Again, not that it is of massive significance but just pointing out that it is not a binding agreement.
  • Despite what it says in the contract, there doesn't seem to be a link to any bylaws for the company. So it's stuck like that and cannot be amended.

I want to invest in this company, but I probably would not buy any of these certificates. Not that I don't trust you to keep your word, but the contract really has to be rock solid if you want to attract legitimate investors. You should probably redo it then list up a new contract.

I'll second all of Peter's questions and ask a few of my own:

1. What are the upload and download speeds of your network? Do you have any files we can test with?
2. What do you forsee people using these servers for?
3. How much do you charge for monthly plans?
4. How do you handle private data remaining on the server when the contracts expire?
5. Are there any usage limitations on what you will allow to be run on these servers?
6. Does any software come pre-installed, such as a HTTP server, FTP server, Mail server, VNC server or VPN server?
7. Does the windows license cost extra or the same price as centOs?
8. What remote access protocols do you allow RDP/SSH/VNC?
9. Do users get full root access to the OS?

I'll also probably think of more, but thats enough for now.

1. What are the upload and download speeds of your network? Do you have any files we can test with?
I am pretty sure that they are 100MB.... I will ask again (I asked before and I forgot).

2. What do you forsee people using these servers for?
As I also have monthly billing available, pretty much anything.  For hourly billing, anything that you would need an hourly server for (you get 3GB of Bandwidth per hour, and 2TB monthly).

4. How do you handle private data remaining on the server when the contracts expire?
The hard drive gets formatted, and then gets imaged with the OS that they want (windows costs a bit more).

5. Are there any usage limitations on what you will allow to be run on these servers?
As long as its not illegal, or pornography.

6. Does any software come pre-installed, such as a HTTP server, FTP server, Mail server, VNC server or VPN server?
I have many pre-imaged OS's to install... PM me or ask me in Bitcoin-otc.

7. Does the windows license cost extra or the same price as centOs?
Nope... 2 cents an hour more. 

8. What remote access protocols do you allow RDP/SSH/VNC?
Anything that the OS supports.

9. Do users get full root access to the OS?
Of course!  Smiley

danieldaniel
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November 05, 2011, 03:34:59 PM
 #6

Also,

"I think there might be a contradiction in there too. You first say that the profits earned by the organization are the property of the shareholders, but then go on to say that only 50% of the profits will be paid out, leaving 50% retained earnings. That means that only 50% of the profit of the company is the property of the shareholders, the other 50% is retained earnings - i.e the property of the company. I'm not sure, but does that not invalidate the first statement?"

I made a mistake, and realized that.  I do not know how to change it, I emailed the guy (doctor something) to ask.

Sorry!

-Daniel

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November 05, 2011, 03:46:28 PM
 #7

Whoever just ordered did not put in an email!  Please re-send your order, I am making that field required now

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November 05, 2011, 04:15:46 PM
 #8

Also,
"You should probably redo it then list up a new contract."

I cannot, as I already have a few investors. 

Sorry!

-DanielDaniel

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November 05, 2011, 04:22:13 PM
 #9

The contract is changed to bitdedi.new, if that helps.

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November 05, 2011, 05:04:27 PM
 #10

How high are your utility bills?
I am not sure what you mean by this... do you mean the cost of the servers?  If so, I am renting them on-demand, and I am letting people pay for them with bitcoins.

How much does the on-demand rental cost you? And how much profit in btc are you making on each rental once you have paid your fiat costs? Is the price of the rental linked to the btc:usd exchange rate, or do you charge a fixed flat rate?

A breakdown of your expenses such as the btc required to cover your fiat and non-fiat expenses, as well as you growth estimates/earnings projections would be helpful too.

Keep up the good work mate!

http://www.bitcointorrentz.com/images/bct_button_117_30.png - BitCoinTorrentz.com: High-speed HTTP torrent downloads. 0.05 btc/gb. Up to 50% discount with free membership!
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November 05, 2011, 05:08:46 PM
 #11

How high are your utility bills?
I am not sure what you mean by this... do you mean the cost of the servers?  If so, I am renting them on-demand, and I am letting people pay for them with bitcoins.

How much does the on-demand rental cost you? And how much profit in btc are you making on each rental once you have paid your fiat costs? Is the price of the rental linked to the btc:usd exchange rate, or do you charge a fixed flat rate?

A breakdown of your expenses such as the btc required to cover your fiat and non-fiat expenses, as well as you growth estimates/earnings projections would be helpful too.

Keep up the good work mate!

The on-demand rental costs me about $0.01 (yes, that is USD) less than what im selling it for.  So im making a $0.01 USD profit off every hour (not much... Smiley).

It is linked to the btc:usd exchange rate... I will set a BTC cost on demand.  I can do a fixed-flat-rate for monthly services, though.

I may partner with another company that provides VPS's in the future, and I really don't know about earnings.  It depends on how many people buy the servers, in #bitcoin-otc, business has been pretty good.  I have sold ~4 servers in 3 days.  No monthly deals yet, though.

Any other questions, ask!  Smiley

-DanielDaniel

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November 05, 2011, 05:30:27 PM
 #12

You should definitely increase the price. You are only making about a 1.5% profit on the biggest plan, that is not nearly enough. Unless you cash out the bitcoin instantly, you will be dealing with costs more volatile than your profit margin can withstand. If the value of btc drops by 1.5% while you are holding it, your profit is immediately wiped out, any further you will be going into the red. And a 1.5% drop is nothing in the bitcoin markets.

http://www.bitcointorrentz.com/images/bct_button_117_30.png - BitCoinTorrentz.com: High-speed HTTP torrent downloads. 0.05 btc/gb. Up to 50% discount with free membership!
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November 05, 2011, 05:31:51 PM
 #13

I don't want to make it too much... should I up it by $0.05 a plan?

I upped it by $0.05 - $0.07 a plan.


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November 05, 2011, 05:43:27 PM
 #14

Todays btc:usd range was 2.85 - 3.14999, or $0.29999. If you took an order at $3.14999 @ $0.08c profit (your original 1c profit + the 7c price increase) and didn't cash out until 2.85, you would be down by $0.21999 making a loss of 31%. Some days the range can be even wider.  

I'd aim for at least a 50% profit margin in this environment. It's much higher than you would ideally like to charge, but it will ensure your business does not suffer any losses without having to hedge your earnings carefully by speculating on the price. It will give you time to cash out the fiat and still have some bitcoin profit left to pay to shareholders.

Most people are willing to pay the premium for well operated services that can be paid for in bitcoin. It helps them to reduce their own risk by paying for as many of their costs in bitcoin as they can. If you run a reliable business, you will get eager clients even if the price is slightly higher.

http://www.bitcointorrentz.com/images/bct_button_117_30.png - BitCoinTorrentz.com: High-speed HTTP torrent downloads. 0.05 btc/gb. Up to 50% discount with free membership!
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November 05, 2011, 05:44:56 PM
 #15

I am probably going to cash out immediately, and when it comes time to pay dividends, buy some BTC to give out as dividends. 
I would cash out immediately so I can get the money into my paypal, which pays for the servers.

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November 05, 2011, 05:54:28 PM
 #16

I am probably going to cash out immediately, and when it comes time to pay dividends, buy some BTC to give out as dividends.  
I would cash out immediately so I can get the money into my paypal, which pays for the servers.

It's better to only cash out the amount you need in order to pay fiat costs. If the price of btc rises, you have to pay more if you plan to buy btc to pay dividends. You are increasing your risk exposure by cashing out everything immediately.

Also there is a time lag between the time you quote the price to the client and the time they actually send payment. They might delay for 24 hours, in which case your quote would no longer be valid. If you plan to run on tight margins, you will have to ensure that the quote expires after an hour or two if it is not paid.

Also, don't forget about taking the cost of a paypal lodgment into consideration. Have you got a reliable exchanger for paypal that is not going to chargeback after you send the bitcoins? How much commission do you pay for btc:paypal transactions?

http://www.bitcointorrentz.com/images/bct_button_117_30.png - BitCoinTorrentz.com: High-speed HTTP torrent downloads. 0.05 btc/gb. Up to 50% discount with free membership!
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November 05, 2011, 05:56:41 PM
 #17

I am going to sell the btc, have it transferred to my bank, and then transfer to paypal.  Directly to paypal it too risky.  Also, I would definitely do that (the quote expiration).  I would tell them that it would be a certain price for an hour.

-DanielDaniel

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November 05, 2011, 06:07:04 PM
 #18

What I would do is make an automatic script that takes the client's order, waits for payment to be received, then initiates a sale on MtGox using their API for the exact amount required to pay for the server in USD. The rest of the coin could remain in your wallet as a buffer in case the market goes against you on future orders.

You don't have to withdraw the fiat from mtgox immediately either, you could wait until you have accumulated enough to save on fees. As long as you cash out enough coin immediately to pay for the cost, you can use the market capital from the IPO as a float for the paypal account.

Complicated though, and you would need a better website interface. But I think it is possible.

http://www.bitcointorrentz.com/images/bct_button_117_30.png - BitCoinTorrentz.com: High-speed HTTP torrent downloads. 0.05 btc/gb. Up to 50% discount with free membership!
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November 05, 2011, 06:09:39 PM
 #19

I will try to do it right now... but you are right, it is complicated.

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November 05, 2011, 06:11:55 PM
 #20

I think its impossible with the mtgox api... Smiley

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November 05, 2011, 06:26:50 PM
 #21

Do you know any php? It can be done pretty easily. Here is the MtGox HTTP API documentation on the bitcoin wiki:
https://en.bitcoin.it/wiki/MtGox/API#HTTP_API

It has a few straight forward examples that you can follow.

Here is a more brief overview of the API on MtGox:
https://mtgox.com/support/tradeAPI

http://www.bitcointorrentz.com/images/bct_button_117_30.png - BitCoinTorrentz.com: High-speed HTTP torrent downloads. 0.05 btc/gb. Up to 50% discount with free membership!
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November 05, 2011, 06:28:07 PM
 #22

Did not see that... and yes, I do know some PHP.

Thanks!

-DanielDaniel

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November 05, 2011, 06:33:36 PM
 #23

No problem. I hope you succeed because I want to see more options for businesses in the bitcoin economy to cut their fiat cost risks. I would have great use for your service. Reasonably priced, scalable dedicated server plans that I could pay for in bitcoin would be very nice indeed.

http://www.bitcointorrentz.com/images/bct_button_117_30.png - BitCoinTorrentz.com: High-speed HTTP torrent downloads. 0.05 btc/gb. Up to 50% discount with free membership!
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November 05, 2011, 07:02:50 PM
 #24

Working on the auto-payment now.
Also, if anyone wants any monthly plans, I am in ##bitdedi on freenode right now!
-DanielDaniel

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November 05, 2011, 07:32:33 PM
 #25

The place that I am renting the server's from has an API!  This means that I may be able to make it completely automated...! 

Anyone who wants to invest, do it before it gets automated (it might go up... lol).


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November 06, 2011, 08:54:58 PM
 #26

Selling shares on GLBSE at 50% off to people who have bought at least two hours of my server!

25% off for one!


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November 07, 2011, 08:45:25 PM
Last edit: November 07, 2011, 09:03:34 PM by mjcmurfy
 #27

How is the automation script coming along?

You're going to have to do a better job on the website before you will attract any investors.
It's just a plain text document with a static form at the bottom.

Right now, your company isn't worth anything, let alone the 234 btc that you are valuing your company at with an IPO of 0.1 btc/share and 2340 total shares.

My advice would be to get the site to at least a semi-developed phase by yourself first to show that you are a competent person to invest in.

http://www.bitcointorrentz.com/images/bct_button_117_30.png - BitCoinTorrentz.com: High-speed HTTP torrent downloads. 0.05 btc/gb. Up to 50% discount with free membership!
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November 07, 2011, 08:47:45 PM
 #28

I am in the middle of developing the automatic script.... and if all goes well, will be done by tonight.

As for graphics, I think your right.  I am going to work on getting everything done, and then will make the website look nice.  Although looking good is important, I think that quality service is better... and I strive to provide that.  As I said, though, I will be working on making it look nice after I get the automatic script done.

Thanks for the advice!

-DanielDaniel

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November 10, 2011, 01:11:40 AM
 #29

ATTENTION:
I am taking BitDedi off of GLBSE! 

ALL SHAREHOLDERS ARE ENTITLED TO SOME SORT OF REFUND!
PLEASE EMAIL daniel184@me.com FOR DETAILS!

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