Okay Gigavps, I know that you are probably very busy, but feel free to respond to this if you have time anytime in the next few days. i am trying to wrap my head around your response. The first thing that I did was to read the Wikipedia article on short selling. Please let me know if I am off base in any of my understand.
This means mining bonds are effectively short BTC price appreciation.
From Wikipedia: In finance, short selling (also known as shorting or going short) is the practice of selling borrowed securities or other financial instruments, with the intention of subsequently repurchasing them ("covering") at a lower price.
So if my understanding of the two quotes above is correct, this what you are saying: My goal with Gigamining should be to make a short term profit by betting that I yield more dividends than the price drop in a fixed (short) period of time. I could choose to repeast the process over and over again. So I buy 100 shares at 1BTC /share, make the dividend, sell the 100 shares at 0.95, buy them back again at 0.9, repeat the procces over and over again. Is this basically correct?
It seems to me that the other possibility is to look for a perpetually income by reinvesting all dividends in Gigamining without ever selling hoping that the continued accumulation of shares eventually means a rapid accumulation of a lot of shares that are worth very little, but I will then be receiving a very large weekly dividend payout because the dividend yield will have gone done much more slowly than the share price. Is this a correct analysis?
Basically, when the BTC/USD price increases, it would be mean you have more buying power in USD things like mining equipment. If your BTC have more purchasing power, it should take less of them to buy 5Mh/s.