If you buy 1 share of BitCO for 8 BTC, you will be entitled to .1 BTC per month in dividends, or 1.2 BTC per year. That is a 15% yield per annum. Any serious investor will tell you that type of yield is very high. However, since this is a brand new concept, we are comfortable pricing the shares at 8 and offering such an attractive yield. We feel it will be beneficial to the Bitcoin community.
No, it is too low. SERIOUSLY too low.
This is a high risk investment with a high risk of loosing the value after half or one year of return. THis is not a guaranteed bond by someone with a balance sheet. This i not an investment into a significantly growing business. I wont touch that with my investment side, sorry. Not for a yearly 15% yield. Make that 150% and w can talk - then after half a year I recouped most of my investment.
Why would we give away the company like that? If we are going to pay a 150% yield, we will keep the shares to ourselves.
Strange people who come out to comment indeed.
At current rewards/hardware, it'd take 6.6yrs to recoup the initial investment. During these 6.6yrs, the mining reward is expected to half itself
twice. The main 'oomph' from the next-gen 7x AMD is a massive reduction in power consumption, with little predicted mh/s increase. But as your power is already not included, the next-gen hardware upgrades won't increase yield (as much).
If transaction fees -don't- recoup the lost mining rewards, after 1 yr my expected break-even time becomes 11.2yrs. 5yrs into that it halves again, leaving me still at ~12yrs.
All this based on an idea (Bitcoin) which hasn't been around along as the initial investment return period.
I'm not fancy at math or nothin, but I don't see how I this current proposal would be a good investment. Maybe I'll end up with egg on my face, who knows.
You make some great points. We think we are positioned well to make our company a success.....however, like any investment, there are risks.
One thing you don't consider is difficulty. What if it keeps falling? Suddenly our production numbers go way up and we can aggresively raise the dividend. Nothing is static with Bitcoin.....both to the negative AND positive.
Thanks for the insightful and well thought out post....we could use a few more like yours.