Quote from: BitCrawler on September 10, 2014, 04:26:08 PM

Hey guys, at the moment when most people voted PETA not to reinvest we all lost a lot of value. At the moment our stocks are worth maybe 1/10th they used to and the dividend is becoming less every day. Why was every so stupid to vote not to invest anymore? Now it's like *poof* and the money is gone.. Is there any future in PETA mining? I remember investing 5BTC, worth 9BTC after some time. Then after the vote I saw it lose its value to about 1BTC. Why did we let this happen? Also, I voted against and have been buying stocks with dividends.

I think the logic at the time of the vote was that the share price had already dropped a lot, and the dividends were quickly falling too. Since we could not sell our existing shares and break even, we thought it would be better to receive larger dividends in the short-term as opposed to getting smaller dividends over the long-term. In any case, I think we all knew that voting for higher dividends would shorten PETA's life. Even if the majority had voted to reinvest, it would just slightly prolong PETA's life by several months. In hindsight, with the information that we now know, I think the majority made the right decision.

One other thing to keep in mind is that PETA was hoping to sell a lot more shares at its IPOs. Since only a fraction of the shares were sold, I think the economies of scale were bad. This led to higher fees being charged per share, also effectively shortening the life of PETA.

Is there any future in PETA mining? I think it will come to an end soon. The fees are relatively high and there are other mining options that seem more attractive. Even with the more attractive options, mining has become extremely competitive, and the chance of breaking even is diminishing in the near-term. When breaking even with mining gets more risky, more people switch to the strategy of buying BTC at a low price and selling at a higher price.

You mentioned that you're buying stocks with dividends. Unfortunately, you have a traditional mindset, where you think the goal of a company is to survive indefinitely. I think many of us had that mindset when we first bought PETA shares. We quickly realized that was not going to be the case. The share price reflected that. When you reinvested dividends in additional shares, you were effectively buying shares that other people no longer wanted. You did not add additional mining capacity. If you keep following this reinvestment plan, you will eventually have close to zero.