[Cryptostocks] Bitbond 200Gh/s 105% PPS mining bond - Relaunched

[amazingrando]

Relaunched on Cryptostocks!


Bitbond (Cryptostocks ticker BITBOND) is a perpetual mining bond where you can buy mining power and receive weekly mining payouts, without buying and maintaining expensive hardware.  Payouts will continue indefinitely.

Bond features

• A total of 200Gh/s offered in 2Mh/s increments
• Weekly payouts are 105% of PPS
• PPS means no variance
• Perpetual - no expiration date
• Buyback provision at 110% of 15 day Cryptostocks average

Benefits over other bonds

• 105% PPS means more bitcoins - a bigger payout and more coins before difficulty increases
• Positive ROI several weeks quicker - up to 13 weeks sooner
• Higher buyback provision - get paid more if I buy back the bonds

FAQ

When would payouts begin?
Payouts started on 4/8/2012
See the post after this for payout history

How long will it take to start mining?
Mining started on Saturday 4/7 at 2 PM.  It is a subset of my mining hash power currently on maxbtc.com

What is your hardware setup?
I exclusively run GPUs for mining due to my low power costs.  I may offer further bonds in the future with FPGA hardware if the economics are right and the FPGA vendor can deliver when I need it

Why/how 105% PPS?
First, I will be doing merged mining so those coins will be used to increase the pay per share.  Also, I would like to offer a good value for each bondholder. The extra 5% will add up over the weeks, months, years.  If reinvested it will greatly accelerate ROI compared to 100% PPS options.

What if you have technical issues/downtime?
I have more than 210 Gh/s operating with a total capacity beyond 300 Gh/s.  Should there be any downtime, I will contribute hashes from my personal farm to ensure the full dividend is paid each week.

[1714207562]

1714207562

[1714207562]

1714207562

[amazingrando]

Payouts

Payout 26 - 9/30/2012 PAID
  All investors were paid 0.00516234 btc per 2MH/s coupon at a rate of 105% PPS for the past week.

Payout 25 - 9/24/2012 PAID
  All investors were paid 0.00533112 btc per 2MH/s coupon at a rate of 105% PPS for the past week.

Payout 24 - 9/16/2012 PAID
  All investors were paid 0.00548516 btc per 2MH/s coupon at a rate of 105% PPS for the past week.

Payout 23 - 9/9/2012 PAID
  All investors were paid 0.00557257 btc per 2MH/s coupon at a rate of 105% PPS for the past week.

Payout 22 - 9/2/2012 PAID
  All investors were paid 0.00605811 btc per 2MH/s coupon at a rate of 105% PPS for the past week.

Payout 21 - 8/27/2012 PAID
  All investors were paid 0.00665011 btc per 2MH/s coupon at a rate of 105% PPS for the past week.

Payout 20 - 8/19/2012 PAID
  All investors were paid 0.00674878 btc per 2MH/s coupon at a rate of 105% PPS for the past week.

Payout 19 - 8/12/2012 PAID
  All investors were paid 0.00725972 btc per 2MH/s coupon at a rate of 105% PPS for the past week.

Payout 18 - 8/5/2012 PAID
  All investors were paid 0.00725972 btc per 2MH/s coupon at a rate of 105% PPS for the past week.

Payout 17 - 7/29/2012 PAID
  All investors were paid 0.00829930 btc per 2MH/s coupon at a rate of 110% PPS for the past week.

Payout 16 - 7/22/2012 PAID
  All investors were paid 0.00848085 btc per 2MH/s coupon at a rate of 110% PPS for the past week.

Payout 15 - 7/14/2012 PAID
  All investors were paid 0.00884393 btc per 2MH/s coupon at a rate of 110% PPS for the past week.

Payout 14 - 7/9/2012 PAID
  All investors were paid 0.00906345 btc per 2MH/s coupon at a rate of 112% PPS for the past week.

Payout 13 - 7/1/2012 PAID
  All investors were paid 0.00897142 btc per 2MH/s coupon at a rate of 110% PPS for the past week.

Payout 12 - 6/23/2012 PAID
  All investors were paid 0.00936318 btc per 2MH/s coupon at a rate of 110% PPS for the past week.

Payout 11 - 6/17/2012 PAID
  All investors were paid 0.00978396 btc per 2MH/s coupon at a rate of 110% PPS for the past week.

Payout 10 - 6/10/2012 PAID
  All investors were paid 0.00963598 btc per 2MH/s coupon at a rate of 110% PPS for the past week.

Payout 9 - 6/3/2012 PAID
  All investors were paid 0.00929289 btc per 2MH/s coupon at a rate of 105% PPS for the past week.

Payout 8 - 5/26/2012 PAID
  All investors were paid 0.00879750 btc per 2MH/s coupon at a rate of 105% PPS for the past week.

Payout 7 - 5/19/2012 PAID
  All investors were paid 0.00853082 btc per 2MH/s coupon at a rate of 105% PPS for the past week.

Payout 6 - 5/12/2012 PAID
  All investors were paid 0.00911298 btc per 2MH/s coupon at a rate of 105% PPS for the past week.

Payout 5 - 5/5/2012 PAID
  All investors were paid 0.01026771 btc per 2MH/s coupon at a rate of 110% PPS for the past week for a massive 420.98 btc ($2126 at current prices)

Payout 4 - 4/28/2012 PAID
  All investors were paid 0.00994375 btc per 2MH/s coupon at a rate of 110% PPS for the past week

Payout 3 - 4/21/2012 PAID
  All investors were paid 0.00981661 btc per 2MH/s coupon at a rate of 110% PPS for the past week

Payout 2 - 4/14/2012 PAID
  All investors were paid 0.00747781 btc per 2MH/s coupon at a rate of 110% PPS for the period of Tuesday 4/10 through end of the day Saturday 4/14

Payout 1 - 4/8/2012 PAID
  First round investors were given 0.00313828 btc per 2 Mh/s coupon for the period of Saturday 4/7 at 2pm through 11:59pm on Monday 4/9, and paid on Sunday 4/8.

[NothinG]

Will defiantly be looking into buying some shares.

What where your predictions on dividends per share?

[amazingrando]

Will defiantly be looking into buying some shares.

What where your predictions on dividends per share?

At current difficulty I would expect about 0.0091 btc per 2mh/s in a week.  Thus if you had 700 mh/s that would translate to about 3.18 btc in a week.

[NothinG]

Will defiantly be looking into buying some shares.

What where your predictions on dividends per share?

At current difficulty I would expect about 0.0091 btc per 2mh/s in a week.  Thus if you had 700 mh/s that would translate to about 3.18 btc in a week.

(700/2)*0.6 = 210 BTC investment for 700Mh/s
700*(0.0091/2) = 3.18 BTC/week

210/3.18 = 66 weeks to break even

Did I do the math right? Took me 10 minutes to double check it a few times. :\

[notme]

Will defiantly be looking into buying some shares.

What where your predictions on dividends per share?

At current difficulty I would expect about 0.0091 btc per 2mh/s in a week.  Thus if you had 700 mh/s that would translate to about 3.18 btc in a week.

(700/2)*0.6 = 210 BTC investment for 700Mh/s
700*(0.0091/2) = 3.18 BTC/week

210/3.18 = 66 weeks to break even

Did I do the math right? Took me 10 minutes to double check it a few times. :\

Except when the reward is cut in half in less than 9 months.

[amazingrando]

Will defiantly be looking into buying some shares.

What where your predictions on dividends per share?

At current difficulty I would expect about 0.0091 btc per 2mh/s in a week.  Thus if you had 700 mh/s that would translate to about 3.18 btc in a week.

(700/2)*0.6 = 210 BTC investment for 700Mh/s
700*(0.0091/2) = 3.18 BTC/week

210/3.18 = 66 weeks to break even

Did I do the math right? Took me 10 minutes to double check it a few times. :\

Yeah, that's that I get also.

If my math is right that would put break even about 6 weeks faster than Gigavps' proposal (as currently proposed) and 13 weeks faster than Meni's bond

[labestiol]

Could you provide a formula for coupons value, like Meni did ?

[guruvan]

This looks very good.

[amazingrando]

Could you provide a formula for coupons value, like Meni did ?

I assume by coupon's value you mean the weekly payouts (similar to a bond's regular interest payments).

For my calculations I use a more straight forward approach than what Meni uses, but I am open to suggestions if someone has a better way.

Shares generated per day (24 hour period) is as follows:

    86400 seconds/day * 2^-32 shares/hash * hash/sec

Example of 700 Mh/s

    86400 * 2^-32 * 700,000,000 = 14,081.6 shares/day

Pay per share is calculated as follows

    52.5 btc / difficulty (normally 50 btc/diff, but 52.5 is 105% as offered in this bond)

PPS payout is calculated as follows (if difficulty is the same for an entire week):

     shares per day * 7 days * (1/diff) * 52.5 btc / block

Example of 700 Mh/s payout in one week with difficulty of 1626553.5

     14,081.6 * 7 * (1/1626553.5) * 52.5 = 3.18 btc

For weeks when difficulty does not change it will simply be the above.  When there is a mid-week difficulty change then I will do two calculations, one for the payout at the initial difficulty for the period of the week before the change, and a second for the period of the week after the change at the new difficulty.  I will then sum the two and that will be the week's payout at a given hash rate.

Let me know if that answers your question.

[mila]

Did I do the math right? Took me 10 minutes to double check it a few times. :\

well enough, but you took the simple approach
ignoring difficulty changes.
with this year's mining activity peak the dividends will be probably getting smaller as the year end approaches

[amazingrando]

Did I do the math right? Took me 10 minutes to double check it a few times. :\

well enough, but you took the simple approach
ignoring difficulty changes.
with this year's mining activity peak the dividends will be probably getting smaller as the year end approaches

The bond is for mh/s and its equivalence in BTC (as a coupon payment) calculated on a weekly basis.

You are right that difficulty will affect the payouts, and that is represented in the calculation.

Regarding payouts decreasing over time, that is a concern to any miner, not specific to this bond.  Current thinking by many people is that difficulty will continue to rise, particularly as we near the point where the number of coins/block changes to 25 (later this year/early next?), but there's more to the story than that.  First, it's important to note that difficulty can go down (and has as we saw for half of last year) in which case coupon payments may go up.  More significantly, there is an important interaction between exchange rate (e.g. USD/BTC) and the difficulty.  Difficulty usually follows price.  Prices have doubled in the past few months and difficulty has followed by increasing (not quite by double).  By my analysis mining, if done efficiently and effectively, will continue to be profitable for a long time to come.  But it is up to each investor (or miner considering buying hardware) to draw their own conclusions on where we are headed.

[amazingrando]

FYI, there may be a delay in the IPO (hopefully not more than a few hours).

There are some bugs in GLBSE 2.0 website that Nefario needs to address before I can issue bonds

[mila]

FYI, there may be a delay in the IPO (hopefully not more than a few hours).

There are some bugs in GLBSE 2.0 website that Nefario needs to address before I can issue bonds

should not affect you. what happens is a program checks if the date/time you specified in the IPO form has passed and creates the shares.
they will appear in your sub-account created specially for the issuer as an asset management account which will have 0 BTC balance
and all 10000 bonds/shares you asked to be created.

if you check https://glbse.com/asset/view/BITBOND total shares issued this will change from 0 to 10000.
then you have to create a sell order to offer them to the public.

afaik there are no bugs in creating sell orders nor in the ipo process. but I see if you have problems to login and create the sell order, it will be delayed.

good indicators are
1) the https://glbse.com/ipos list will no longer contain bitbond
2) the https://glbse.com/asset/view/BITBOND asset page will display count of shares issued > 0
3) trading starts (or at least asks not empty)

[amazingrando]

Thanks mila-

From what I know it used to be that you could create bonds (shares) before the IPO.  I didn't know there was an automatic mechanism in GLBSE 2.0.

Seems like others are having login issues, but hopefully that won't affect me.

I'll check at the IPO time and see if everything is working (crossing my fingers!)

[R-]

Subbed. This is definitely a neat venture. Sent you a PM.

[hashking]

When is this going live. 

[jamesg]

When is this going live. 

This morning sometime I believe.

[R-]

IPO time! Time to scramble.

[amazingrando]

GLBSE will automatically create bonds (shares) later this morning.  Then I'll get everything set up and offer the shares to the public.

Can't wait to get under way and start making money for you guys!