Post
Topic
Board Securities
Re: [BitFunder] [TAT.VIRTUALMINE] Virtual Mining - Hash Without Hardware!
by
fently
on 14/06/2013, 02:53:25 UTC
I'm confused.. how do these dividends pay more than ASICMINER dividends if they are BACKED by AM shares?  Shouldn't they be the same?

For the cost of 1 asicminer you get ~385 virtualmine. 1 share Asicminer div is ~0.036 a week. 1 share Virtualmine is 0.00003223 a day. I'm sure I don't have to spell it out for you. Virtualmine is ~2.4x more a week. If you're look solely on dividends virtualmine is undervalue compare to asicminer.

Can we look at % annual return, rather than direct share comparison?  (sorry I thought this was obvious)
  This would be like me saying asicminer-PT pay more divdends than asicminer-TAT -- obviously not true, as their dividend return % should be the same.   

Lets talk strictly % return please..

% annual return is hard to predict for both of them, because they are different things. AM is mining + re-investment + sales. TAT.VM is income per hash. So over the long term, AM dividends will not drop as fast as the TAT.VM dividends. TAT.VM dividends will fall when difficulty rises. AM dividends will fall when they can't deploy enough new hash power to make up for difficulty increases or when their sales drop.