The fact that ActM is traded on two different exchanges leads to some interesting problems/ Problems in the math sort of a sense.
For example, what does it mean if the price on BTCT is very different from the price on ActM? Is it a trend? a statistical variance of some sort? Since there is no way to transfer shares from one exchange to the other, a big difference in the price of ActM from one exchange to the other could represent an opportunity for a quick and clever trader. It could just represent a shortage on one exchange. So, then, what is the true price of ActM? Does it make sense to trade ActM on two exchanges to take advantage of short term price differences? Does the market on one exchange respond to the price on the other exchange or does each act like a completely separate market?
There were more shares issued on BF, and people prefer BTCT. The gap is the result of supply/demand
Other issues are Who are the top 15 share holders? Will they have a say or vote or representation on the board in proportion to the number of shares they have? Are these big share holders people who own lots of shares of other mining companies or are they most invested in ActM?
I don't think that's our business...
right now, the price of ActM on Bitfunder is hovering around .005, what will happen when the price goes to .01? I set that as an arbitrary point where someone with at least 100K shares would have $100K US if the price of BTC is about $100. Is there some point where bit shareholders would all cash out? Does that matter to the price of ACtM for everyone?
That's a question you could ask about ANY stock. Yes, there will always be profit taking as the share price goes up. They won't necessarily cash out at once, or at the same price. They will act individually as they choose.
ActM is different from all the other mining stocks on Bitfunder for a varietyof reasons, including how badly Ken and AMC got attacked on here initially. It seems none of the other recent IPOs got attacked as ruthless as as AMC. Yet, of all of them, only ActM has put a PR person in place and of all of them only AMC/ActM has had a CEO who was accessible by phone and chatted freely on IRC. Also, some of the other IPOs on Bitfunder raised money for their companies through an IPO but only have mining equipment on order and have no plans to do anything other than mine on hardware which they have on order. Meaning, at some point, they will have to upgrade their hardware. It means that companies that are assembling their own mining equipment will always have an advantage. And, any company designing their own chips will have an advantage (if they can get the product finished and into working machines and mine before the competition).
Yes, this goes for any industry.
The other issue is the overall Bitcoin economy. Right now, all the stocks and fund and bonds on Bitfunder, except for one, are mining related. There is one person who has a company related to the purchase and rental of real estate properties. He is using BF to raise bitcoin money which he is converting btc to USD and then investing in real estate and paying dividends from his revenue.
Everyone else is either making loans to mining companies or buying miners or mining on machines they already have or manufacturing mining equipment. At some point, mining will be less profitable, and the bitcoin economy will have to mature into real businesses. Oh! Yes! There is one company on BF that sells t-shirts with bitcoin logos. All the rest are mining related.
How will the bitcoin economy mature? Will other sorts of non-mining stocks finally emerge? How is the price of any stock affected by having it listed on two exchanges instead of one?
Stocks in the regulated world are normally traded on multiple exchanges as well. Their price should generally be the same. In this case you also have to take into account the difference in interface of one exchange over the other(whereas in the real world, the interface for 2 exchanges is probably your bank website). If people generally like BTCT more than BF, then stocks will be in higher demand, especially if there is less issued shares as is the case with Activemining. BTCT is simply better. BF is messy and deposit/withdraws aren't as easy.
How does the fact that so many IPOs of new mining companies affect the price and future of ActM?
It affects the share price, but not the future of ActM. Yes the IPOs are sucking in investors and causing selloffs everywhere. But those are all speculators. Ken has already got his funding, so what short-term investors decide to do with the share price right now of activemining will have very little effect on the current operations of the business. The price would have to raise significantly for Ken to actually care, as he only has ~100,000 more shares.
The otehr issue is why someone buys a stock. On one level, people buy BTC based stocks for the excitement and for the thrill of being part of something new. Some of us couldn'[t get into IPOs of FB or Apple or Google, so this is an exciting substitute. Also, we are hoping that whatever the price of ActM is now, that in a year, its price will go up. In a short time, G.AsicM went from .88 to 4.5. Imagine how much money some people made!
So some people bought ACtM because they are hoping that the price will go up. Some made money from short term rise in price. Others are holding on for the long term. But, another reason why people buy a stock is to make money from dividends. How often should there be dividends? How much of the income of ActM should go back into development of the company? How patient are we, the investors? Personally, I think all focus now should be on product development (which is exactly what is occurring).
It is only August and ActM has not existed very long at all. Neither really has bitcoin. What will happen next?
Dividends are weekly and investors will receive 100% until 0.0025 has been paid per share, at which point Ken will start to take profits as well from that.
