[[This is a cross-post from the thread for this security on the LTC forums - in case anyone was interested in it]]
Hey Deprived.
I like your securities, you are always up to date with the latest news and the forum reports I read every one of them. I totally love your openness.
I just have some questions regarding your fund and bond.
What is the purpose of the new bond? Doesn't that mean that the first bond will lose value as everyone will rush to buy "cheap" in on a new bond?
Also, I really think LTC will rise again when it finally hits LTC and then go down.
But if I have understood your bond value(which I bought a lot of yesterday for the first time) correctly, I should only buy your fund when LTC is high. Right?
Whats the best for me, if I think LTC is going high again, to buy your bond OR your fund?
Because right now I feel i bought your bond at a bad time when I think the LTC value is going to go up in the end of the month.
Keep up the good work and thank you once again.
I'm not sure which new bond you mean. There's three possibilities - I'll address all of them :
1. If you mean LTC-ATF.BFIN then it isn't a bond but a fund. It has an entirely different target market to LTC-ATF.B1 - being denominated in USD rather than BTC.
2. If you mean the (potential) new bond on BTC.CO - to replace LTC-ATF.B1 for future raising of capital - then that would, if anything, increase the price of LTC-ATF.B1 as it would pay a lower rate of interest and so be a worse investment.
3. If you mean the three new securities I'm about to launch on BTC.CO (totally unrelated to LTC-ATF) then they're, again, an entirely different thing with a very different market.
LTC-ATF.BFIN is, in any event, on hold right now - due to possible serious issues with Bitfinex such that no way will I put more of my own or investors' funds there until they're resolved. If it does launch then I don't see it having any impact on LTC-ATF.B1's price.
Remember that LTC-ATF.B1's price is never going to fall below .0099 BTC (converted into LTC) as I'll ALWAYS buy them back at that price - that's guaranteed in the contract.
If you want to buy and sell LTC-ATF.B1 to speculate on the LTC/BTX exchange-rate then you should be buying when you think LTC will fall and selling before you think it will rise. Sounds like you may have bought at the wrong time (from your own expectations) - personally I tend towards thinking LTC will continue to slowly fall for a while yet, with occasional upward spikes. As the volume traded on BTC-E has dropped volatility will increase a bit - there's now often pretty wide ranges with no significant orders in.
Trading LTC-ATF.B1 as a means of speculation on the exchange-rate will only work in the medium to long term - the spread is too wide and volume too low for it to be used in the short-term.
For longer-term investment LTC-ATF.B1 is best suited for those who want some part of their portfolio to be (effectively) in BTC - especially if they believe LTC will fall vs BTC. Whilst LTC-ATF is for those who want their investment primarily to be denominated in LTC - especially if they believe LTC will rise vs BTC.
LTC-ATF is undoubtedly the better investment
if you can buy it at a reasonable price - and therein lies your problem : noone wants to sell LTC-ATF at a reasonable price. If the LTC/BTC exchange-rate stays stable then LTC-ATF is always going to grow at a rate that is at least three times as fast as LTC-ATF.B1 pays dividends. That's a fact - purely because if it ever falls below that then the LTC-ATF.B1 bonds will have to be bought back (at 5% over face value). Historically LTC-ATF has grown by over 5% every week on average - compared to 0.6% for LTC-ATF.B1 dividends. Going forward growth is likely to be lower than that - but I still expect average growth around 3% per week.