And to calculate the value of the contract, people were relying upon the impact of compounding interest (and the bonds past-through had to keep the compounding going so you could pay out - you essentially gave away your right/ability to withdraw early as well). So my earlier post is plain wrong.
A month long contact is riskier as you cannot pull it out if, for instance, you felt he was 2-3 weeks away from a default. But this kind of thing is hard to quantify (and you are also saving yourself from making wrong predictions with a month long contract).
Topic: . - page 4. (Read 67488 times)
Not wanting to get into the math, but the "collected" interest would be in the defaulted BS&T account.
In other news, there isn't much. I note that nanotube and the Pirate/Vandroily bet has a good definition of default. Other than the comments that it "would take a week" which gets us to US Central time on Monday, I'm still waiting for a definitive result.
In other news, there isn't much. I note that nanotube and the Pirate/Vandroily bet has a good definition of default. Other than the comments that it "would take a week" which gets us to US Central time on Monday, I'm still waiting for a definitive result.
I just realized that my (and another person's) valuation of these bonds (1.0528 or something like that - valued in terms of direct BTC investment in Pirate) was wrong.
In the event of a default you can collect up to 3 weeks interest (0.21) that you do NOT have to pay out to investors, and then pay out the 0.34 partial guarantee. I guess on average you'd be collecting around 1.5 weeks of interest (0.105), so the guarantee is only costing you 0.235. This would depend on what day you realize the operating is closing and thus stop issuing bonds.
Effectively the one-month fixed term offloads part the risk of a default on to the bond purchaser, making the guarantee less useful.
So I'm guessing the real value of the bonds (in Pirate deposit equivalent - which is current not equal to having BTC on hand) is closer to 1.02 or 1.03. And this explains why you were still selling them when the average price was < 1.04.
This is my tentative conclusion - feel free to double check.
In the event of a default you can collect up to 3 weeks interest (0.21) that you do NOT have to pay out to investors, and then pay out the 0.34 partial guarantee. I guess on average you'd be collecting around 1.5 weeks of interest (0.105), so the guarantee is only costing you 0.235. This would depend on what day you realize the operating is closing and thus stop issuing bonds.
Effectively the one-month fixed term offloads part the risk of a default on to the bond purchaser, making the guarantee less useful.
So I'm guessing the real value of the bonds (in Pirate deposit equivalent - which is current not equal to having BTC on hand) is closer to 1.02 or 1.03. And this explains why you were still selling them when the average price was < 1.04.
This is my tentative conclusion - feel free to double check.
Yes, some people are lazy, and others are greedy.
I am both lazy AND greedy. 
The choice is either:
a) I pay 0.32 for all outstanding bonds given there have been no payments from BS&T for over a week, or,
b) Everyone waits to see if the funds become available and I pay 1.28.
Choice:
c) pay 0.32 dividend to each bond holder. If and when BS&T returns the loaned money do a buyback to bondholders for 0.96 per bond.
I would vote for either Option A or Option C. Of course I only hold 5 PPT.x bonds, so I don't count for much.
Yes, some people are lazy, and others are greedy.
And some people claim that $5 million in BTC isn't a lot of money.
(beware the context) It's not if you're going to "run", but if you've got it in the bank and living comfortably, it would be ok.
Yes, some people are lazy, and others are greedy.
And some people claim that $5 million in BTC isn't a lot of money.
It's as if the haters want the bitcoin economy to fail as I do not see them doing anything positive.
HYIPs are not "the bitcoin economy". Passing coins around and giving each other imaginary fractional increases on deposits is not productive and is not a service.
Correct, but the are a part of it. The same logic suggests real life banks are not productive, nor provide a service. The efficiency of capital markets and the lowered cost of seeking funds is actually a tangible benefit, and that is why they exist. However, this is more a discussion for economics rather than this particular security.
The purpose should be to support and enable productive activity, not for "seeking funds". That's putting the cart before the horse.
When everyone is happy "investing" in nothing more than promised profits with no discernable business model, then they aren't serving or helping anybody (just gifting one person). And that makes it more difficult for honest businessmen to access funds. Because who would bother with something risky that requires actual work when you can earn 7%/wk with pirate and "its highly unlikely that he'll default".
Someone who wants funds doesn't even have to build a scammy coinscalper like front-end anymore. People have gotten so lazy with greed.
The choice is either:
a) I pay 0.32 for all outstanding bonds given there have been no payments from BS&T for over a week, or,
b) Everyone waits to see if the funds become available and I pay 1.28.
Choice:
c) pay 0.32 dividend to each bond holder. If and when BS&T returns the loaned money do a buyback to bondholders for 0.96 per bond.
That is an option although outside the bounds of the contract. (and if GLBSE ever comes back online)
The choice is either:
a) I pay 0.32 for all outstanding bonds given there have been no payments from BS&T for over a week, or,
b) Everyone waits to see if the funds become available and I pay 1.28.
Choice:
c) pay 0.32 dividend to each bond holder. If and when BS&T returns the loaned money do a buyback to bondholders for 0.96 per bond.
It's as if the haters want the bitcoin economy to fail as I do not see them doing anything positive.
HYIPs are not "the bitcoin economy". Passing coins around and giving each other imaginary fractional increases on deposits is not productive and is not a service.
Correct, but the are a part of it. The same logic suggests real life banks are not productive, nor provide a service. The efficiency of capital markets and the lowered cost of seeking funds is actually a tangible benefit, and that is why they exist. However, this is more a discussion for economics rather than this particular security.
PPT.E is due for buyback in around three hours. I have been watching and waiting for developments to the BS&T unwinding process, but at this stage have not seen any progress. This does not conclusively identify as a default of BS&T under the PPT.x contract and it is better for customers that it isn't.
Given withdrawals to make PPT.E payments are not available, the buy-back will be delayed until such time as either funds are available or a default is confirmed.
Given withdrawals to make PPT.E payments are not available, the buy-back will be delayed until such time as either funds are available or a default is confirmed.
How?
A missed payment is by definition default.....and after reading the contract I do not see any exception for "intent to pay later".
While I tend to agree, I am looking at how I can provide the best outcome for bond holders. Also, in most contracts there is a period for remedy (although it is not written into the simple PPT.x terms.)
The choice is either:
a) I pay 0.32 for all outstanding bonds given there have been no payments from BS&T for over a week, or,
b) Everyone waits to see if the funds become available and I pay 1.28.
Actually, option (a) is better for me as I would only be obligated to pay 0.32 and if/when BS&T pays out, I would get to keep the difference. However, option (b) is better for bond holders.
The purpose of my post was to state something rather obvious, even if it is not particularly welcome.
It's as if the haters want the bitcoin economy to fail as I do not see them doing anything positive.
HYIPs are not "the bitcoin economy". Passing coins around and giving each other imaginary fractional increases on deposits is not productive and is not a service.
PPT.E is due for buyback in around three hours. I have been watching and waiting for developments to the BS&T unwinding process, but at this stage have not seen any progress. This does not conclusively identify as a default of BS&T under the PPT.x contract and it is better for customers that it isn't.
Given withdrawals to make PPT.E payments are not available, the buy-back will be delayed until such time as either funds are available or a default is confirmed.
Given withdrawals to make PPT.E payments are not available, the buy-back will be delayed until such time as either funds are available or a default is confirmed.
How?
A missed payment is by definition default.....and after reading the contract I do not see any exception for "intent to pay later".
PPT.E is due for buyback in around three hours. I have been watching and waiting for developments to the BS&T unwinding process, but at this stage have not seen any progress. This does not conclusively identify as a default of BS&T under the PPT.x contract and it is better for customers that it isn't.
Given withdrawals to make PPT.E payments are not available, the buy-back will be delayed until such time as either funds are available or a default is confirmed.
Given withdrawals to make PPT.E payments are not available, the buy-back will be delayed until such time as either funds are available or a default is confirmed.
Watch all of these bonds and bullshit disappear once pirate defaults...
But then what would you have to troll about?
hgminga(?) and gene will disappear. Micon will move onto someone else, and "team hate" will find something else to beat on. I still find it amazing how polarised this place is. It's as if the haters want the bitcoin economy to fail as I do not see them doing anything positive.
1% interest per week ? PONZI!!!!!
I dont think they will be happy till all the deposit takers are paying 1% a year like Bank of America.
Watch all of these bonds and bullshit disappear once pirate defaults...
But then what would you have to troll about?
hgminga(?) and gene will disappear. Micon will move onto someone else, and "team hate" will find something else to beat on. I still find it amazing how polarised this place is. It's as if the haters want the bitcoin economy to fail as I do not see them doing anything positive.
Watch all of these bonds and bullshit disappear once pirate defaults...
Hello Mr smoothie. The payments for PPT.E, PPT.A and PPT.B are scheduled over the next three weeks. In the event BS&T defaults on payments, there is a clause in contract requiring a set pay-out from my own funds.
I have noticed your positing history is not as extreme as many others in the forum, but it appears you are vying for some kind of notoriety, or was it just you had not placed your negative comments here until now.
Personally I will welcome the removal of the bullshit, and if it happens that BS&T pays, then it will be yours the world will be better off without. If BS&T defaults, then it will be someone else. Either way, this particular PPT will still be here as will I.
How about PPT.D? It should mature in a few minutes...
PPT.D will be paid in approximately 59 minutes - the funds have been sitting there for a while.
Everything looks good. Thank you PatrickHarnett.
My favorite zeros are gone for good. Now what?
I need to find my coins a new home where they can earn interest. I am not trading those so they can stay put for extended time. PatrickHarnett, if you have something with dividend reinvestment plan, let me know.
Cheers!
How about mining bonds?
not sure if serious.
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