Re: Why is the BitFunder SDice pass through trading so cheaply?
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i am curious though how mpex has killed off the stupid bullshit prices of mining 'stocks' 'bonds' whatever you wanna callem
It has to do with the direction of the exponential. In the real world, when people buy stocks, they try to buy ones where the exponent is positive r = A*exp(x/t), like the red line. But mining is intrinsically a negative exponent process r = A*exp((1-x)/t), like the blue line. So MPEX is winning because they carry red line companies, not blue line companies.
Also, no ponzi.
For the sake of accuracy, I would argue that individuals should place more importance on solid EPS growth over revenue growth. There are many factors that can cause a company to have increased revenue while also having a negative effect on the company's bottom line. It may be better to change the chart to reflect that.
Of course, EPS growth is only one of a long list of factors that are important to consider when evaluating securities (if approaching from a fundamental perspective.) Unfortunately, with btc-based assets we don't have the luxury of complete detailed and accurate financial data.