Quote from: bobboooiie on June 30, 2013, 07:12:08 PM

Quote from: explorer on June 30, 2013, 06:45:12 PM

Quote from: eltopo on June 30, 2013, 01:26:25 PM

Quote from: runeks on June 30, 2013, 12:59:57 PM

I get a feeling that any people in the financial industry would laugh their ass off if they read this thread, saying that less than a 25% p.a. return on ones investment is unacceptable. I mean, the Bitcoin mining industry is risky, but is it that risky?

Conclusion of this view would be, that the shareprice has to be valued much higher. If a 15% p.a. return would be suggested fair, shareprice has to be 10 btc!

When I first saw AM, it was about 1.3btc. Without much research (well, without any really Cheesy

) I thought that looks too good to be true, and I bought some partial shares. It was rising fast, and I started reading up on it, and my first rough calc I decided potential was close to 10btc so I figured buy all I can before it gets too high. When it stalled around 2.5 I was stumped, but kept buying as funds permitted. I think we've reached the point where my dividends will go back to hoarding and buying silver now though. when the dividends drop back to a more sustainable level I hope some more speculators will drop out, bringing it back to an affordable level. If dividends remain high... well, I can't really complain, can I?
What I am curious about is the relation to the btc:$ variable. If bitcoin is $1000, does that make AM market cap ridiculous, driving the price down? or does the dividend potential support a share price in the $4000-$10000 range? All very exciting to be a part of, no matter how it plays out!

AM is Bitcoin business, the rate between BTC/USD doesnt really affect price of share

While AM sells its goods in BTC and mines BTC, it stands to reason that the majority of their costs are measured in fiat currency (USD or CNY). Therefore there is sensitivity to the BTC/fiat exchange rate.