Post
Topic
Board Speculation
Re: SecondMarket Bitcoin Investment Trust Observer
by
JorgeStolfi
on 27/04/2014, 16:45:26 UTC
SecondMarket could make even more money if they had a private source that would sell them bitcoins below market price. That difference in price would be their extra profit.
They do.
I don't know how KNC sells their mined coins; but they seem to be a carefully planned enterprise, so I guess that they secured from the start a contract with some investor who is bound to buy their bitcoins at a fixed price.  If that price is still below market, that could be a source of cheap coins.

SecondMarket of course will not knowingly buy stolen bitcoins.  But why would not they buy at 80% discount of market price from some respectable investor who bought them at 60% from someone who bought them at 40% from someone who bought them at 25% from a Russian mobster who bought them at 15% from the MtGOX thief?  It is not their job to trace all stolen coins in the blockchain, is it?

EDIT: "80% of market price", of course, not "80% discount".