Is anyone else incapable of pulling out BTC (what was left from CipherMine.B1, the dividednd from December) from Ciphertrade?

Thank you for your response; I really appreciate someone is actually reacting to what I wrote. You are absolutely right about the increase in the money supply, I'm not sure how that mistake slipped into the paper.

I don't understand your distinction between money supply and supply (to meet demand). There will be 21 million Bitcoins in the future, and unless fractional reserve banking is adopted that will also be the money supply. (Fractional reserve banking is likely to be adopted only in a limited form, due to Bitcoin's inherent volatility and illiquidity.) I don't see how Bitcoin's supply curve might be raised by the increased hoarding of Bitcoins. If you mean the amount of Bitcoins offered on exchanges, then if Bitcoin is hoarded, its price will rise, encouraging some of its holders to sell it and profit on the trade. But there will still be the same amount of Bitcoins among its users. Because the price must rise to accommodate the increased demand (no new Bitcoins can be created), it makes Bitcoin's price unstable, hence volatile, not ideal for money.

Hi guys,

I wrote a Bachelor's thesis on THE IMPLICATIONS OF THE PREDETERMINED FINITE MONETARY BASE OF BITCOIN ON ALTERNATIVE CRYPTOGRAPHIC CURRENCIES.

Here's the abstract:

The cryptographic currency market has developed considerably since Bitcoin’s inception in 2009, and now has the ability to affect real-world economies. Some economists believe that certain forces (e.g., network effects, switching costs, government restrictions) prevent nongovernment monetary systems to occur. However, the recent growth of cryptocurrencies reveals that they have the potential to challenge the status quo of government-issued money systems. This study examines the forces that could potentially lead to the establishment of a money market leader, and then uses the findings to assess the impact of Bitcoin’s monetary base on Bitcoin itself, as well as on alternative cryptographic currencies. Results reveal that Bitcoin’s economic parameters were useful in the initial adoption of the currency; however, these parameters limit the cryptocurrency to work as an alternative to fiat money.


And here is the rest for anybody who wants to read the conclusion too: https://docs.google.com/file/d/0B6IyNaO3yNICYkFDckJaTTBXY1k/edit


Constructive feedback is welcome!


Martin

I don't understand what Kate is doing. If she can't honor her debt, she should announce CipherMine's bankruptcy. She should liquidate CipherMine's assets and the proceedings of this action should be paid to bondholders. If there is anything left (which there won't be), she should pay the rest to CipherMine's shareholders.
It is unreasonable to expect we could get our whole investment back. But Kate should act on her own words and move ahead as she promised she would in a situation like this.
Not only is Kate building up an untrustworthy reputation in the Bitcoin community which might affect her future career in technology. By being inactive, she is also incentivizing us to carry legal action against her, the costs of which she will have to cover. And she clearly IS breaching the terms of contract if she continues to operate CipherMine.

It's surprisingly dead here considering some people must have lost quite a bit of money. I mean, it was always clear this bond could never be repaid in full and would have to default at some point since it was used as capital for something that is inherently unprofitable. But I really hoped I could see at least some part of this misfortunate investment back (investment I as well as other Deprived fund participants were forced into) . Technically, in nominal fiat terms, I thought it could even be more than what it was back in September last year as Bitcoin has raised so much since. Why is everyone so quiet?

Ok, will hope for the best. I never held them for too long as I have always felt like Kate keeps making way too many mistakes for me to feel comfortable about it. Now I am stuck with over 2000 of them on a closing exchange... I wonder what "big investor" means for her, but it would take me two months to earn that much money on a regular job in my country...

I am glad the CL loan worked out fine. Do you have any opinion on how the Ciphermine bond deal will work out? Is it likely to move onto a different exchange and become liquid?

I've sent you my Sellings and Minings... Thanks!

It should be... it seems like somebody forgot about it though:((

Thanks, that's what I was refering to. (Should have quoted it.)

Deprived, I really do not understand, why we should only get 99% of NAV/U? It's ok if people want to continue, but the ones who do not should be given the chance to get a fair deal.

The contract is quite explicit in terms of what will happen in unforseen circumstances.

Cease making new investments,
Liquidate investments where possible,
Cease selling new DMS.PURCHASE
Offer redemption at 100% (less any exchange fees) of NAV/U for DMS.PURCHASE and bundles of equal numbers of DMS.MINING and DMS.SELLING where it is possible to do so whilst retaining at least 50 days dividend cover in liquid BTC for the remaining DMS.MINING.


Either way, the fund is closing down. It may reopen on a different exchange, with very similar contract (but not quite the same), it may offer the redemption of Mining and Selling for Mining and Selling on the new exchange. That is all fine with me. You have proceeded with the first three steps, I believe you should with the last one as well. (I have read everything up until now and agree that we wait for the CL coins.)



Disclaimer: I own slightly above 6% of Mining and Selling. I bought the overpriced Mining only after the BTCT announcement of its closure, exactly because of this part of the contract.)

+1

There are countries where the site can still be operated, including my own; I really don't think this was the best decision for the market participants or for the website owner.

The site is down for me, but this time in a very weird manner. I can see texts but no graphics. And no information that is in a variable form on the site. (I can see only static texts.)

One more thing - I don't think this was possible previously, but now I can put more bids than how much BTC I have on my account as long as the bids are in for different securities.

Why is there no way to set a withdrawal fee for the Bitcoin client? The transactions with zero transaction fee take forever:((

Selling so low below NAV/U... that's a new one around here...

Wow, someone bought in at 7,1% mark-up last night.

That's not what it was doing to me, but it hardly matters. Where can I buy it?))

Gotta say that bot putting ask prices 0,000004 lower than your last input is fucking annoying.

The difficulty change will be on Saturday GMT, but on Sunday GMT+1 where London is in summer. Which of them applies?

Haha, I love guessing. As Deprived mentioned, 5% would actually be very nice considering the size of the fund. I have similar experience - I do occasional trades for my friend who's lent me some money to play with, and I always earn more on his account than on my own (relatively) - simply because there's significantly less money and it's easier to move it around. The fund's size is bigger still, so it will be even more difficult (although the manager probably spends a lot more time on it than I do, so it's possible to meaningfully invest the capital).

The true test though will be the comparison with Just-Dice. While I don't remember what their profit was a month ago; if their luck had been 100% (I think it was a bit higher), their profit would have been ~3,4% (assuming 170k wagered and 50k in the bank; sorry for the estimates) for the month.

EDIT: their real profit was ~1800 BTC (thank you Deprived for keeping the score!), but average bank might have been a bit higher (than 50k) too, so 3,4% monthly profit is a good guess.

I give BTC-Growth a 2,5% estimated appreciation. If it is anything over 4%, the manager is a boss, beating a casino.