μ - Bitcoin Venture Capital (Collecting Shareholders Data)

[Kluge]

Subscribing. I will note for those on the fence that many favorable deals arrive by having a large quantity of funds and making it known you're looking for investments, though investments certainly don't have to be done exclusively through GLBSE.

If it is not known you have a large amount of funds and are investing, you will receive no offers. If you let it be known you are investing but do not have a lot of cash-on-hand, you miss out on a lot of great opportunities, and kick yourself every day after you've had to pass on it.

Pooling investment and lending to (or buying shares in) those with ideas & means to implement those ideas is a very wise move -- it gives the producers an idea of who to go to for funding. I understand how negatively group-think and centralization can be perceived, but it does have practical value in some applications. In the end, dis-associating yourself with a group is as simple as selling your shares/bonds/CDs/whatever.

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[1713574376]

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[friedcat]

Subscribing. I will note for those on the fence that many favorable deals arrive by having a large quantity of funds and making it known you're looking for investments, though investments certainly don't have to be done exclusively through GLBSE.

If it is not known you have a large amount of funds and are investing, you will receive no offers. If you let it be known you are investing but do not have a lot of cash-on-hand, you miss out on a lot of great opportunities, and kick yourself every day after you've had to pass on it.

Pooling investment and lending to (or buying shares in) those with ideas & means to implement those ideas is a very wise move -- it gives the producers an idea of who to go to for funding. I understand how negatively group-think and centralization can be perceived, but it does have practical value in some applications. In the end, dis-associating yourself with a group is as simple as selling your shares/bonds/CDs/whatever.

Well, please excuse my ignorance, but your three paragraphs are maybe the hardest English text for me to read in this forum. (English is not my first language, and I still somehow suck on it) Could you please bother to interpret a little more? Thank you very much.

[Kluge]

Subscribing. I will note for those on the fence that many favorable deals arrive by having a large quantity of funds and making it known you're looking for investments, though investments certainly don't have to be done exclusively through GLBSE.

If it is not known you have a large amount of funds and are investing, you will receive no offers. If you let it be known you are investing but do not have a lot of cash-on-hand, you miss out on a lot of great opportunities, and kick yourself every day after you've had to pass on it.

Pooling investment and lending to (or buying shares in) those with ideas & means to implement those ideas is a very wise move -- it gives the producers an idea of who to go to for funding. I understand how negatively group-think and centralization can be perceived, but it does have practical value in some applications. In the end, dis-associating yourself with a group is as simple as selling your shares/bonds/CDs/whatever.

Well, please excuse my ignorance, but your three paragraphs are maybe the hardest English text for me to read in this forum. (English is not my first language, and I still somehow suck on it) Could you please bother to interpret a little more? Thank you very much.

Sorry about that. I was trying to suggest to potential investors (and those who just hold their Bitcoins) that they'll be exposed to much more favorable deals by pooling their money with an organization like muBit which will be well-known.

Rather, if Bitcoin-CorporationX is seeking to deal with just a few investors, they will not send a message to 50+ individual investors, they'll go to maybe 3-5 collectives like muBit, and collectives like muBit will be the ones with access to the best deals. A large collective will also have an advantage (compared to individuals) with information. While a company or individual will likely answer many questions for a potential large investor, one person with a few BTC to throw around probably won't receive nearly the amount of attention.

[friedcat]

subscribing

Please look at and learn from the LIF disaster. I hope you will do much better.

+1 on this.  Especially when there are only about 25 equities to really trade on GLBSE.

This is our main concern too. There could not be that many great investment opportunities
in a mere number of 25 or so stocks and bonds currently. But at least we have these two things to do about this:

1. As said in the OP, we will try to make loans when we have spare funds and there are temporarily no
proper equities to invest in. The number of coins sleeping there without making any wealth should
be as small as possible.

2. We will report the nature of our business and the current GLBSE market condition when IPO starts,
and probably every week since then. In fact, we have already been discussing them now in the updates
of our thread. We suggest investors to read through this thread and make thorough considerations before
actually putting anything in muBit.

[friedcat]

Subscribing. I will note for those on the fence that many favorable deals arrive by having a large quantity of funds and making it known you're looking for investments, though investments certainly don't have to be done exclusively through GLBSE.

If it is not known you have a large amount of funds and are investing, you will receive no offers. If you let it be known you are investing but do not have a lot of cash-on-hand, you miss out on a lot of great opportunities, and kick yourself every day after you've had to pass on it.

Pooling investment and lending to (or buying shares in) those with ideas & means to implement those ideas is a very wise move -- it gives the producers an idea of who to go to for funding. I understand how negatively group-think and centralization can be perceived, but it does have practical value in some applications. In the end, dis-associating yourself with a group is as simple as selling your shares/bonds/CDs/whatever.

Well, please excuse my ignorance, but your three paragraphs are maybe the hardest English text for me to read in this forum. (English is not my first language, and I still somehow suck on it) Could you please bother to interpret a little more? Thank you very much.

Sorry about that. I was trying to suggest to potential investors (and those who just hold their Bitcoins) that they'll be exposed to much more favorable deals by pooling their money with an organization like muBit which will be well-known.

Rather, if Bitcoin-CorporationX is seeking to deal with just a few investors, they will not send a message to 50+ individual investors, they'll go to maybe 3-5 collectives like muBit, and collectives like muBit will be the ones with access to the best deals. A large collective will also have an advantage (compared to individuals) with information. While a company or individual will likely answer many questions for a potential large investor, one person with a few BTC to throw around probably won't receive nearly the amount of attention.

Thanks for your elaboration. Now I understand you without difficulty.

Yes, these are the advantages of having collectives like investment funds. Their negotiation power, their reduction of costs, and probably their higher priority as funding providers all contribute to their advantages.

While the downside of collectives, I think, is that they introduce an extra layer of indirection, and hence some extra risks, especially when they are on their infancy.

[Philj]

I missed the cognitive IPO waiting on funds to be deposited, but I'll be sure to get in on this one. If people reading your records and just copying you is an issue, then you can always remain fully open, but publish on a delay of a week or something. Best of luck to you guys.

[friedcat]

I missed the cognitive IPO waiting on funds to be deposited, but I'll be sure to get in on this one. If people reading your records and just copying you is an issue, then you can always remain fully open, but publish on a delay of a week or something. Best of luck to you guys.

Thanks very much for your wishes. And thanks more for your advice.

We are not especially worried about anyone copying our investment tactics. What we are worried about most, is that once people know
we have new IPOs as our preys and we have to sell some of our assets to re-invest, they would take advantage of the
fact that a large selling is coming, then collectively lower the price to make a profit and hurt us.

However, no choice is without tradeoffs. We choose to disclose a lot of information to gain trust. If we take a more secret way, we may be able to have the advantage of acting secretly, but there will probably be more people who don't believe us.

[Nefario]

We'll be switching over to 2.0 in the next few hours, this means GLBSE will be down for one or two hours.
Assets,shares and bitcoin will be carried over, history (for the moment) will not.

Nefario

[HorseRider]

Maybe you should focus on the dividend growth, the book value of the portfolio, rather than the share price. As 1000 BTC player on the GLBSE, you can hardly realize such kind of price increase in a IPO-buy-in-then-resell-it cycle. Because after the IPO, the liquidity is very against your plan.

It's only possible that you research the company seriously and hold them to have the dividend and growth.

The overall return to your shareholders will be very much close to the oeverall ROE of the companies you bought. Prices of some of the shares will rise, like Cognitive or BTCSYN, but some of them will fall, as RSM, a company with a mean and fishy CEO. And the liquidity is really a problem for the buy-and-run strategy. you cannot avoid buying in RSM like company. The GLBSE is a very self-regulated market.

I will buy some shares of this fund. Maybe you should chose some good company to hold for a longer time, not so many buy-IPO-and-run job.

[friedcat]

Maybe you should focus on the dividend growth, the book value of the portfolio, rather than the share price. As 1000 BTC player on the GLBSE, you can hardly realize such kind of price increase in a IPO-buy-in-then-resell-it cycle. Because after the IPO, the liquidity is very against your plan.

It's only possible that you research the company seriously and hold them to have the dividend and growth.

The overall return to your shareholders will be very much close to the oeverall ROE of the companies you bought. Prices of some of the shares will rise, like Cognitive or BTCSYN, but some of them will fall, as RSM, a company with a mean and fishy CEO. And the liquidity is really a problem for the buy-and-run strategy. you cannot avoid buying in RSM like company. The GLBSE is a very self-regulated market.

I will buy some shares of this fund. Maybe you should chose some good company to hold for a longer time, not so many buy-IPO-and-run job.

you're interested and investing in a 3% per week return company? wow. GL.

Thank you very much for your advice. We are thinking about the same problem too.

We were planning to take an approach which is a hybrid of "hold&gain" and "IPO&run". It seems that we were too optimistic about the second one. When liquidity becomes our enemy, we will keep more shares unmoved and profit from the dividends, as you suggested.

But anyway, no matter we choose the hold&gain approach or the IPO&run approach, we could not totally avoid buying RSM-like shares. And on the other hand, no matter what approach we take, we have to try our best to avoid the RSM-like trap. (To the CEO of RSM: we are not criticizing your company and you in person, and we are just objectively pointing out that your constantly changing of plans is a bad business practice, which has been severely delaying your IPO and crippling the price of your shares.)

The market price and the actual value are two faces of the same coin. In the future, when the GLBSE market grows bigger, we hope that liquidity will become a less concern.

I don't quite understand your last paragraph. My English level is not enough for me to distinguish sarcasm from normal statements. We are interested in TyGrr-Bank, and we are aware of that it won't last long before the CEO buys them back. In fact, we are interested in every asset on GLBSE, but interest is different to investment choice. We will not necessarily invest in TyGrr-Bank, and currently it's just myself putting a relatively small volume of my own Bitcoins into it.

[friedcat]

Update

News

GLBSE2.0 is out. We have already migrated to GLBSE2.0 without problem.
But it seems that it has some issues on migrating, reported by others:
https://bitcointalk.org/index.php?topic=60489.msg818498#msg818498
as well as dividend payments:
https://bitcointalk.org/index.php?topic=65569.msg818433#msg818433 (Update: this seems to be already fixed, according to Nefario)

The IPO details of a new GPU farm which has inexpensive power will be out:
https://bitcointalk.org/index.php?topic=66204.msg817772#msg817772

[HorseRider]

now there is trading fees on GLBSE 2.0. the liquidity problem will be even worse.

[friedcat]

now there is trading fees on GLBSE 2.0. the liquidity problem will be even worse.

Agreed. At least the 0.5% ratio is a bit too high.

[friedcat]

Update

News

We have now been partly verified by Nefario:
https://bitcointalk.org/index.php?topic=70592.msg813767#msg813767

It is said by the CEO of RSM that they will use a new kind of FPGA chips, but we are not convinced:
https://bitcointalk.org/index.php?topic=63257.msg819666#msg819666
https://bitcointalk.org/index.php?topic=63257.msg819672#msg819672

The new mining farm we have been interested in will be named as "Fresca", but its plan was largely changed,
now it seems that it's not profitable at all:
https://bitcointalk.org/index.php?topic=74044.0

GLBSE is having a non-critical security risk:
https://bitcointalk.org/index.php?topic=73910.msg818978#msg818978

[friedcat]

Update

Our IPO has finally started!

News

A new mining bond is about to appear:
https://bitcointalk.org/index.php?topic=74154.0

A fund which seems to be doing secondary loaning is listed on GLBSE:
https://bitcointalk.org/index.php?topic=74216.0

[HorseRider]

The GLBSE will be offering the market maker a very low trading fee rate. So large and professional fund manager can make profit through MM. I bought some shares of mu.

[friedcat]

The GLBSE will be offering the market maker a very low trading fee rate. So large and professional fund manager can make profit through MM. I bought some shares of mu.

Thanks for reminding us! We haven't thought about this before.

But as our comprehension of MM, it needs some kind of frequent follow-up of the market. This is what we are not able to do currently. But it seems to be quite a promising business in the future.

[friedcat]

Weekly financial disclosure

Time: 6:34 PM, Beijing time
Date: Mar. 28, 2012

Initial Funds Before IPO: 0.045 BTC
Shares Sold: 704
Gross Income: 70.400 BTC
GLBSE Trading Fee: 0.352 BTC
Net Income: 70.048 BTC
Total Funds: 70.048+0.045=70.093 BTC
Dividends Paid: 0.045 BTC
Spent Funds: 0.000 BTC
Usable Funds: 70.048 BTC

We haven't invested in any assets yet. The dividends comes from a very small number initial funds which is too tiny to withdraw and annoying for future accounting. We also use this payment to test the GLBSE2.0 dividends payment system.

[friedcat]

While investors are buying shares of muBit, we are gradually buying some of them as well.

Note that 100% of the shares are being selling to public. We do not reserve any of the shares. This is to say, the only cost of each share for the shareholder is the 5% fee. We ourselves hold some of the shares only via buying.

And also, as said in the OP, we promise that we will not hold more than 10%. Therefore we are guaranteed to be incapable of influencing the results of motions too much.

[HorseRider]

While investors are buying shares of muBit, we are gradually buying some of them as well.

Note that 100% of the shares are being selling to public. We do not reserve any of the shares. This is to say, the only cost of each share for the shareholder is the 5% fee. We ourselves hold some of the shares only via buying.

And also, as said in the OP, we promise that we will not hold more than 10%. Therefore we are guaranteed to be incapable of influencing the results of motions too much.

Usually it's a very positive signal for an asset manager put his own money into the fund he is managing. I think after the IPO, you can public the number of shares you hold to the public, since GLBSE is still not with this function.

The fee structure of this fund is much better than other fund in the capital market, which charges 2% management fee per year and 20% of carried interest. The famous donation fund manager David F. Swensen hate such kind fee structure very much. muBit is starting a good and new practice for the asset management industry.

I only hope that you will be more diligent towards the risks. Some investment opportunity looks have very high rate of return, but it's dangerous.