I posted this as well in the BFLS.RIG thread, but it might be worth repeating here (apologies for the double post):
I am going to be converting BFLS shares into BFLS.RIG at 1:1, so everyone will in one payout bucket.
A single payout bucket is welcome but I have a concern about the proposed 1:1 conversion: a 1:1 conversion does not appear to represent fair value for BFLS shareholders. Unlike 'regular' mining bonds such as Gigamining, BFLS and BFLS.RIG represent a share of hardware
, not hashrate
BFLS (1 Single/200 shares): $600/200 = $3 per BFLS share
BFLS.RIG (1 MiniRig/6058 shares): $15295/6058) = $2.52 per BFLS.RIG share
This indicates that a BFLS share is worth more ($3/$2.52, or 1.19x) than a BFLS.RIG share. Put another way, 5098 BFLS shares ($15295) are worth the same as 6058 BFLS.RIG shares ($15295) which is the value of 1 MiniRig.
So to fairly convert the hardware value of BFLS into BFLS.RIG, 1 BFLS share should be converted to 1.19 BFLS.RIG shares
. A 1:1 conversion would mean that BFLS shareholders take a 19% loss. If my analysis is flawed, I'd like to know where it fails.