Quote from: hellscabane on April 18, 2014, 03:55:31 AM

Quote from: vossen on April 18, 2014, 01:05:32 AM

Quote from: hellscabane on April 17, 2014, 04:45:07 PM

Quote from: jwinterm on April 17, 2014, 12:22:15 PM

Quote from: jparsley on April 12, 2014, 05:08:12 AM

Intresting development, looks like a lifetime contract. Ill buy some but i dont expect to make much profit unless btc diff drops

If btc diff drops that much, then there is probably something seriously wrong that will cause the price to drop, so, what I'm trying to say is that there is about a 0.00000001% chance that these things will be profitable.

It seems that the market is starting to "quiet down" in the sense that prices are lowering. But even at the current prices, a lot has to happen to make ROI on these contracts.

You never know though, Cryptsy could change the function of these shares to somehow make them actually "profitable."

I can't believe how many people here think this. As long as the price of your shares don't drop in value, ANY return is profit. There are no sunk costs at all. You need a ROI that exceeds the cost of the hardware only when doing the mining yourself, because you won't be able to sell the miner for the same price you paid for it. Just watch the share prices, and sell if the price drops lower than your purchase price with accrued interest. It's like buying a bond: The vast majority of bonds that people buy offer MUCH lower interest rates.

That is "if" you sell it for an equal or higher price of what you buy it for. But I don't see people being able to sell shares that they buy at .0275 for the same price in the future. The implicit assumption is that you buy a share with the intent of making a return after all transactions.

As for a bond, "profits" aren't "realized" until time of redemption. In this case, it's when you sell your share (or when the value of the fixed income passes the original purchase price). The difference is that there is no guarantee you will sell your share for the amount that you bought it for.

If you think the price of the share will drop substantially, then it would make no sense to buy it. I think the price will stay above .0200 which was my purchase price, for the medium term. All you need to do is set your shares to sell if they fall beyond a certain price. It's incredibly easy. Every payment I get is pure profit.