ASICMINER: Entering the Future of ASIC Mining by Inventing It

[LazyOtto]

Found it. Thank you.

[HorseRider]

The vote is here, and please vote for yes:

https://glbse.com/vote/view/109



For those retail investors, I would like to summarize my email here:

1. Bitcoin exchange rate is at the risk of another huge drawdown. we should be aware of it.

There are good news for bitcoin these days, but the short term market price is highly fluctuate and unrelated to the fundamental change.

the daily drawdown on 2012/8/19 is more 35%, which is the largest one on the mtgox trading history on a daily close price basis.

The exchange market is highly unstable, we are at the risk of another huge drawdown. There is chances that we run into a rally again, but the cost we are taking into risk is unacceptable. please see point 2.


2. If we don't lock the fiat money right now, the ASICMINER is taking Time and Opportunity to speculate the exchange rate gains.

Time: we have to pay the development cost very soon. different than common bitcoiners, ASICMINER cannot wait for the next rally. if extremely market move happens, we may have to liquidate the bitcoin under a unfavorable condition, which may make this project fail.

Opportunity window: If we cannot make it happen right now, we may never make it happen again, or have to play a hard mode game in a very competitive environment. For normal bitcoiners, a bitcoin is a bitcoin forever; for the ASICMINER, the opportunity window closes, it never open again.  we should lock the opportunity.

3. why 8000 btc?

this amount of bitcoin will make sure that under the extreme price drawdown, the ASICMINER can still carry out its plan.

For those board members who think that the bitcoin will rally very soon again, the rest of the bitcoin(3000-6000) can make the company enjoy the appreciation.

”a few board members would like to gamble on the BTC price fluctuation with the full amount of the ASICminer capital, and by doing that, they risk the whole endeavor. Instead, HorseRider suggest, these board members should use their own capital to speculate on BTC price. Also, since some BTC would be left after the first liquidation, ASICminer can still benefit from a rally“ -Jutarul

[keystroke]

Thanks for the opportunity. I just voted YES. There was not a confirmation page but I assume my shares were cast.

I don't think pirate will be able to manipulate the market as he may want to, but it's too risky not to sell the coins to raise capital for our ASIC project. The BTC price is quite high right now. I encourage all other shareholders to vote FOR the motion.

[Jutarul]

(since you have tried to risk the company into a failure to catch the rally, the debt leverage won't be risky for you from your view, too)

sorry. lost in translation. Can you rewrite?

[LazyOtto]

...
The BTC price is quite high right now.
...

Doesn't matter whether or not the "price is quite high right now".

The price is adequate right now.

We bought into an ASIC production effort, not a BTC price speculation plan.

[DiabloD3]

...
The BTC price is quite high right now.
...

Doesn't matter whether or not the "price is quite high right now".

The price is adequate right now.

We bought into an ASIC production effort, not a BTC price speculation plan.

Yes, but ASIC production costs dollars not BTC. If BTC were to drop to, say, $1 right now, ASICMINER would be up shits creek. I voted yes on the measure with DMC's shares to make sure ASICMINER succeeds.

BTW, Friedcat? Hurry up with the BTC sales so we can get this shit in gear. I don't want to have to vote yes on another motion to deal with BTC price drops.

[LazyOtto]

Yes, but ASIC production costs dollars not BTC.

And that was my point. Apologies if it was obscure.

[Digigami]

I too have voted in favour of the exchange.

[HorseRider]

The vote is here, and please vote for yes:

https://glbse.com/vote/view/109

[HorseRider]

(since you have tried to risk the company into a failure to catch the rally, the debt leverage won't be risky for you from your view, too)

sorry. lost in translation. Can you rewrite?

rewrited,

some board members have tried to  catch the bitcoin exchange rate rally by endangering the company's business plan, so that using debt to invest in bitcoin won't be risky for them if they are so sure about the direction of the bitcoin price.

[Jutarul]

(since you have tried to risk the company into a failure to catch the rally, the debt leverage won't be risky for you from your view, too)

sorry. lost in translation. Can you rewrite?

rewrited,

some board members have tried to  catch the bitcoin exchange rate rally by endangering the company's business plan, so that using debt to invest in bitcoin won't be risky for them if they are so sure about the direction of the bitcoin price.

I am afraid not much better. I'll try an interpretation and you can correct me if I'm wrong:
What you're saying is that you got the impression that a few board members would like to gamble on the BTC price fluctuation with the full amount of the ASICminer capital, and by doing that, they risk the whole endeavor. Instead, you suggest, these board members should use their own capital to speculate on BTC price. Also, since some BTC would be left after the first liquidation, ASICminer can still benefit from a rally.

[HorseRider]

(since you have tried to risk the company into a failure to catch the rally, the debt leverage won't be risky for you from your view, too)

sorry. lost in translation. Can you rewrite?

rewrited,

some board members have tried to  catch the bitcoin exchange rate rally by endangering the company's business plan, so that using debt to invest in bitcoin won't be risky for them if they are so sure about the direction of the bitcoin price.

I am afraid not much better. I'll try an interpretation and you can correct me if I'm wrong:
What you're saying is that you got the impression that a few board members would like to gamble on the BTC price fluctuation with the full amount of the ASICminer capital, and by doing that, they risk the whole endeavor. Instead, you suggest, these board members should use their own capital to speculate on BTC price. Also, since some BTC would be left after the first liquidation, ASICminer can still benefit from a rally.

Thanks for the interpretation, it is exactly what I mean.
I hope that one day I could have some time to improve my English writing skills.

[Gabit]

Voted "Yes". Secure the opportunity.

If there is a fall, it will probably take place on this weekend when the banks are closed and no new money is pouring in.

[zefir]

The vote is here, and please vote for yes:

https://glbse.com/vote/view/109

Thanks HorseRider to bring this up.

Generally I'd agree, better ensure the venture can be realized at all than to speculate on better exchange rates and potentially higher reserve funds.

The only issue I have is: do we already know that the IPO will pass successfully? If not and we need to exchange to fiat and then back to refund the coins, this will inevitably cause losses. I personally stopped calculating in fiat, and it would hurt to get only 80% of my invested BTC back.

[HorseRider]

The vote is here, and please vote for yes:

https://glbse.com/vote/view/109

Thanks HorseRider to bring this up.

Generally I'd agree, better ensure the venture can be realized at all than to speculate on better exchange rates and potentially higher reserve funds.

The only issue I have is: do we already know that the IPO will pass successfully? If not and we need to exchange to fiat and then back to refund the coins, this will inevitably cause losses. I personally stopped calculating in fiat, and it would hurt to get only 80% of my invested BTC back.

if we sell 8000 bitcoins right now, even if the exchange rate have a 50% drawdown, we will still have enough money push this venture into masking process, and have enough time to raise more money we need.

50% sharp drawdown happened only 4 times in the mtgox trading history. ((2010/11/9-11, -61.9%;  2011/6/11-13, -70.3%; 2011/10/19-25, -60.3% and the most recent one) It won't likely to happen again very recently as we already have such crash a week ago. Giving all the shareholders and friedcat agree, we will have time to sell more shares and won't delay the process.

but if we keep all the capital in bitcoin, a 20%-30% drawdown will make the IPO a failure, or delay the process. All previous 50%+ crash follows a down trend to test the bottom of the crashes. If it works the same way this time, we could test 7-8 usd in coming future weeks, when it is the time for Bitfountain pay its bills.

This motion is trying to prevent ASICminer from the exchange rate risk. This will secure the IPO and secure the opportunity, no matter which direction the exchange rate goes. If we have a rally, the IPO will definitely be successful. the 3k-5k bitcoin will benifit from the rally. If we have a drawdown and even a sharp drawdown as much as 50%, the project will still alive.

[uuidman]

Cant vote for now, glbse is down.

[rxw]

Cant vote for now, glbse is down.

It goes down momentarily occasionally. I just checked and it's back up

Anyways consider me a vote cast for selling those 8000- the market seems to be tied up in this drama with BTCST, and whether or not pirate will pay out. While I don't claim to have a crystal ball, it seems like this episode has many more ways of crashing the price of bitcoin than rallying it.

Thank you for being responsible enough to put it to a vote, friedcat

[BrimStone]

I just voted Yes as well.

[novusordo]

Voted yes. This is obviously the safest course of action for Bitfountain's success.

[DutchBrat]

YEA !