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.
Why should I invest into that then? If you can not make back most of my money before the next risk cfactors hit (which are the 7xxx series and the drop in payout) then why should I invest?
Seriously, 15% isa good yield for a B style bond or a viable long term business perspectiv, but this is missing here - you will run into significant depreciations left and right and your mid termfinancial credibility is bad to start with. This is not a gold mine where gold will still guaranteed to bein demand in 20 years. I would expect the hardware cost to be recouped in a year or... the risk is too high.
Why should you invest? Let me answer with another question: What are your alternatives if you are looking to invest BTC?
Could you go set up your own mining farm and start hashing away? Sure, but that takes time, resources, and the payback period is getting longer by the day. Assuming you can build a 2,500 MH/s farm for $2,500, you would earn just about 522 BTC in a year. At the current exchange rate, that would just about equal the cost of your farm. But half of that (or more) is going to go to electricity! So now you are looking at closer to two years (or more) for a break-even.
Long story short, perhaps a 15% yield is not sufficient, but don't compare it to non-existent alternatives.