Quote from: fonsie on June 16, 2014, 05:32:54 PM

@Puppet
At first I thought you were a troll, my apologies.

Accepted and I appreciate the candidness. After all the scams and bad investments I have tried to expose over the years, I dont actually recall being thanked once even after the fact. I do recall often being accused of actually having caused the collapse. Im sure that will be next here too

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a 50/50 div/reinvestment, is not going to be enough in the long run, so it will have to get adjusted, thus decreasing the price/share (it should have been 10/90 from the start, not a single company gives 50% dividends).

As I tried explaining for quite some time now, reinvestment ratio doesnt change the outcome.

A 0% reinvestment strategy will give you the maximum possible return for the investment in the shortest time, just like when buying a miner, but that will not be enough to achieve a positive ROI due to the far too high $/GH and $/KwH. My numbers show it would yield at best in the neighborhood of ~40% ROI (ie, a 60% loss).

A 100% reinvestement strategy will not pay out a satoshi in dividends ever but will also not be able to increase the hashrate at the same pace as the network; the mining revenue as % of investment is simply lower than the difficulty growth, so your share of the network and therefore, share value will simply slide over a long time until approaches zero and thus you end up with ~0% ROI. Its like buying a unprofitable miner and using all your revenue to buy more unprofitable miners.

Any reinvestment ratio in between will be a mix of both, but wont change the fact you will lose.