Post
Topic
Board Service Discussion
Re: Bitfloor CrowdSource Recovery Proposal: 224 1k Investors
by
elux
on 23/09/2012, 12:39:01 UTC
What's the ROI for this?

A back-of-the-envelope estimate:

Bitfloor had a pre-hack monthly profit of on the order of $1000, IIRC.

Thus, Bitfloor would need to pay investors at least 100% of the pre-hack
monthly EBIT for 224 months to bring the prospective investors of this proposal back up to zero.

(This is assuming fixed profits, which is clearly unrealistic, but doesn't affect the conclusion of our analysis.)

Realistically, your ROI is very close to minus 100%. The $1000 you invest have already have been lost.

You could do this for charity. But bailing out Bitcoin businesses that fail hard on security is... BAD.