[GLBSE] PureMining: Infinite-term, deterministic mining bond

[ribuck]

Well, it appears that the streamlined, deterministic nature of this bond isn't attracting that much interest.

Oh, don't assume that. This is by far the most interesting asset seen so far at GLBSE.

But GLBSE as a platform doesn't exactly make life easy for new investors. (Why is PureMining not listed under the "Listed Companies" link on the GLBSE home page, for example?)

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[Meni Rosenfeld]

Well, it appears that the streamlined, deterministic nature of this bond isn't attracting that much interest.

Oh, don't assume that. This is by far the most interesting asset seen so far at GLBSE.

Others have also expressed this sentiment, and it's great to hear - but it's moot if not accompanied by people actually buying.

It could be argued that I'm being impatient, but it's a fast-paced world, and I don't really expect more uptake later on if there was little during the excitement of the original announcement.

But GLBSE as a platform doesn't exactly make life easy for new investors.

To be honest I was hoping to attract "old" investors who are currently invested in other mining assets. Also, GLBSE has its faults but I don't think the barrier of entry is too large. For me as an issuer it was a bit intimidating until I realized the "contract builder" is completely irrelevant. Once one creates an account it gets the job done.

Anyway, the trading platform used is one of the components that go into the measurement of level of interest. If there is interest but not on this platform, it subtracts from the valuation.

(Why is PureMining not listed under the "Listed Companies" link on the GLBSE home page, for example?)

No idea, I think this is some sort of legacy thing. When GLBSE 2.0 is live I'll make more effort to get some relevant exposure.

[ribuck]

... it's a fast-paced world, and I don't really expect more uptake later on if there was little during the excitement of the original announcement...

I think you're being impatient. Probably only 5% of the readers of this forum have even seen this thread so far. And anyway, people need to hear about a new concept at least three times before it sinks in.

GLBSE is being rapidly improved as a platform (although it has a long way to go still), but the commitment seems to be there.

And your own reputation at GLBSE will increase over time as more dividends get paid out. Sure, you have plenty of reputation elsewhere, but not everyone at GLBSE follows those other places.

So I hope you will stick with this platform long-term, and offer many interesting and innovative assets.

[brendio]

Well that price drop seemed to move them. I just went thinking I'd buy some more, and they are all gone.

[Meni Rosenfeld]

The initial offering of 200 bonds is sold out.

I've also put up a bid myself to act as a baseline for liquidity.

... it's a fast-paced world, and I don't really expect more uptake later on if there was little during the excitement of the original announcement...

I think you're being impatient. Probably only 5% of the readers of this forum have even seen this thread so far. And anyway, people need to hear about a new concept at least three times before it sinks in.

GLBSE is being rapidly improved as a platform (although it has a long way to go still), but the commitment seems to be there.

And your own reputation at GLBSE will increase over time as more dividends get paid out. Sure, you have plenty of reputation elsewhere, but not everyone at GLBSE follows those other places.

So I hope you will stick with this platform long-term, and offer many interesting and innovative assets.

I think it's healthy that the bonds are now in the hands of investors and that increases in exposure, trust and demand will drive up the price. What will really affect my bottom line is what the valuation will be when I issue larger amounts.

[ribuck]

Well that price drop seemed to move them.

It's not surprising that the bond is very price-sensitive. It seems highly likely that mining difficulty will continue to increase with the introduction of FPGA mining, but how rapid will the takeup be?

The interesting counterpoint is whether there will also be some difficulty decrease when the block reward changes in December. Personally, I doubt it. When something is known about so far in advance, people factor it into their plans.

[Meni Rosenfeld]

Well that price drop seemed to move them.

The interesting counterpoint is whether there will also be some difficulty decrease when the block reward changes in December. Personally, I doubt it. When something is known about so far in advance, people factor it into their plans.

There will be some difficulty decrease at that point, because marginal miners will pull the plug when it swaps from profit to loss. But in addition there will be a slowing down of the increase before that, as people who would otherwise purchase hardware will avoid it due to the imminent decrease in profitability.

The price of BTC will also be affected; the simplest projection is that if you compare a short time before the halving with a short time after it, the difficulty will drop by 2^(1/3), the price will increase by 2^(1/3) and the fiat profit per hash will decrease by 2^(1/3).

[brendio]

Any plans to issue more any time soon, or are you waiting for the market to set the price first?

[organofcorti]

I am so annoyed the Bitclockers fiasco made me miss this! It's the first investment on GLBSE that I'd consider purchasing.

Please post as soon as you're taking new investors. I have some lazy coins I need to do some work for me.

[Meni Rosenfeld]

I am so annoyed the Bitclockers fiasco made me miss this! It's the first investment on GLBSE that I'd consider purchasing.

Please post as soon as you're taking new investors. I have some lazy coins I need to do some work for me.

Strictly speaking you don't have to wait that long; you can put up a bid at a price which is attractive for you and hope some early adopter will want to cash out at a profit.

I will of course post when new bonds are issued.

Any plans to issue more any time soon, or are you waiting for the market to set the price first?

I can't guarantee anything one way or the other, but I expect about 1 month from now to be the general timeframe for making another issue.

[Meni Rosenfeld]

There was a bug in retrieving difficulty for new blocks. Because of it, coupons paid for the last 3 blocks were about 9% higher than should have been. Since the mistake was in favor of bondholders, no further action is needed; and hopefully the bug is fixed now.

For reference, the amounts that were actually paid were:

Code:

170351    	Mar 09 2012 12:39:10  	1331296750          	180784    	1376302.26789 	50        	0.0015291719	Paid
170015    	Mar 07 2012 10:26:06  	1331115966          	202337    	1376302.26789 	50        	0.0017114792	Paid
169679    	Mar 05 2012 02:13:49  	1330913629          	237283    	1376302.26789 	50        	0.0020070720	Paid

The amounts which should have been paid, and are now reflected on the website:

Code:

170351    	Mar 09 2012 12:39:10  	1331296750          	180784    	1496978.59502 	50        	0.0014059004	Paid
170015    	Mar 07 2012 10:26:06  	1331115966          	202337    	1496978.59502 	50        	0.0015735113	Paid
169679    	Mar 05 2012 02:13:49  	1330913629          	237283    	1496978.59502 	50        	0.0018452753	Paid

[Meni Rosenfeld]

I intend to issue 300 new bonds later this week, at a price that is to be determined.

Current bidders should be advised that if the issue price is lower than their bid, they will pay the full price they bid.

[Meni Rosenfeld]

I have issued 300 new bonds, for a total of 500. They are offered at 0.32 BTC.

I can now also disclose that my obligations are backed by an agreement with Inaba to run mining hardware for me in his datacenter. So far I have ordered 13 BFL single units, which are sufficient to cover about 10,000 bonds. (Since this partnership was originally conceived as part of my own desire to invest in mining, this should in no way be taken as an indication of the number of bonds I intend to issue.)

ROI projections:
Issue price - 0.32 BTC
Difficulty - 1496979
Block reward - 50 BTC
Daily return - 672 uBTC (0.21% ROI) = 86400 * 50 * 10^6 / (1496979 * 2^32)
Weekly ROI - 1.47% (linear, non-compounded) = 7 * 0.21%
Monthly ROI - 6.40% (linear, non-compounded) = 30.5 * 0.21%
Annual ROI - 114% (compunded weekly) = 1.0147 ^ (365/7) - 1

[marked]

What was with the 0.000000 dividend payment yesterday?

marked

[Meni Rosenfeld]

What was with the 0.000000 dividend payment yesterday?

marked

It was a test to see if I can work around GLBSE's limitations in handling payments by using multiple accounts (which seemed a better idea than trying it out on a real payment, and risking yet another excessive coupon). It succeeded.

It was actually 1 satoshi per bond, but GLBSE's Javascript rounds the displayed amount.

[Nefario]

I'm just after getting back from London(gone since Tuesday),  charts.glbse.com is not showing any updates since the 12th.

For the moment, all the latest trades for GLBSE can be found on it's twitter feed here.

I'm contacting the operator of charts to find out what the story is.

Nefario

[Meni Rosenfeld]

Bonds are sold out for now.

[alexmat]

Any plans on issuing new bonds?

[Meni Rosenfeld]

Any plans on issuing new bonds?

There is a possibility I will issue new bonds next week.

[alexmat]

How many and at roughly what price?