This is a question for the serious investor/mathematicians out there. One of my favorite forms of investing is dividend reinvestment and long term exponential growth. Cryptsy has been offering Bitcoin mining shares that pay daily "dividends" and can be traded like stock. You can also now buy partial shares, so that the dividend earnings can be reinvested on a weekly or monthly basis.

For the sake of argument, lets take the biggest risk out of the equation. Let's assume Cryptsy is not going anywhere, and that the money you invest will not be "Mt Goxxed."

Let's also assume that while the original principal investment will fluctuate, it will remain fairly constant and will not go down to $0.00. Obviously, this could happen, but for the sake of argument let's assume your original principal is moderately safe.

Now, I bought one share of MN2 at .180BTC

My average daily dividend is currently .00051724BTC

Weekly that comes out to .00362068BTC

This equals a roughly 2.011% return each week on the principal

Assuming that the payouts remain fairly constant over the next few years, if I were to reinvest the dividends on a weekly basis by buying fractions of shares...how long would it take to see some reasonable exponential growth? A few years?

Obviously there are a lot of "what ifs," including increase in hash rates (and thus decrease in payouts), transaction fees, etc. But I'm playing around with the numbers because something like this could be a good addition to someone's investment portfolio. Obviously we are in early days, but it is interesting stuff.