Topic: [Bit Funder] [btcquick] [Rising profits] - page 21. (Read 42866 times)

This is a false premise "And so a rise in BTC/USD rate doesn't just reduce capital (measured in BTC) but also reduces the amount of revenue that can be supported (again measured in BTC) and so the profits (in BTC)." You are assuming that as a business we sell X BTC a day, when in fact if BTC value goes up we still sell around our daily USD average and the # of total BTC sold actually goes down. Also the increase in BTC price does not reduce revenue or capital because a customer is limited to the amount of USD they have on hand and in turn will buy the same amount in USD whether the price is up or down. The reason for us holding USD is to reduce the risk of btcQuick to price volatility.

Theory of running a business and actually running one are two different things.

Unfortunately not the case here.  Revenue is limited by capital - increasing revenue means capital has to increase (either by retaining profits to expand or by issuing new shares).

If revenue wasn't constrained by capital then a case could be made that the security wasn't USD-denominated (as although capital would still drop that wouldn't impact revenue).  But that's not the case here - as revenue is very directly limited by capital (because of the delay in receiving payments in a usable form).  And so a rise in BTC/USD rate doesn't just reduce capital (measured in BTC) but also reduces the amount of revenue that can be supported (again measured in BTC) and so the profits (in BTC).  All of those things that reduce when measured in BTC stay the same when measured in USD - which is as clear a demonstration as you can get that the security is, in practice, USD-denominated.

If BTC rises significantly vs USD what you'll see happen is one of two things - either:

Profits will fall.
or
More shares will have to sold to get capital (in BTC) back to where it was - allowing profits to be the same but diluting them when measured in BTC/share terms.

If accounts were being produced then this would be pretty obvious (and I could explain it with actual numbers) - but they aren't, so it isn't.

But surely, increased revenues from new users, which is what we are seeing, negates/off sets a possible rise in BTC. Together with the option to sell, means even more revenue. I get the conversion conundrum.....RentalStarter is another good example, but what am i over looking here, if the goal is to keep increasing revenues/dividends?....which is being achieved in style, btw.

It has nothing to do with where the cut is taken from, but from which currency capital is held in.  For this security that's USD not BTC (confirmed by the issuer not too many posts back) - BTC are only held briefly when needed to fill an order.  So when the exchange-rate moves, the USD value of capital remains stable and the BTC value changes.

I'm not criticising the decision to do that - in fact there's no way capital COULD be held as BTC (because when a purchaser places an order there's no way to immediately convert their USD into BTC - those funds are locked in USD for a while until received from the payment processor and moved to an exchange).

If BTC were to double against USD then the effect would be to halve capital when measured in BTC (in USD it would be unchanged).  That means that whilst the same trade volume could be supported in USD, only half the volume could be supported in BTC.  Which means profit in BTC would be halved (though would be same in USD).  Trade volume is constrained by capital due to payments from purchasers having a delay imposed on them before they're available for use - and we know volume is already near/at that limit.

This is not entirely true for btcquick as this is kinda unique kind a "USD/BTC-denominated" security. You always get your cut from the actual rate and not fixed one that you would have payed at the IPO and converted in into USD. Think about it as this if we would take our cut from BTC the same exact thing as you described would happen to USD-denominated security would happen to us. Because if price of BTC/USD rises naturally the amount of BTC bought/traded would go down.

The thing a lot of the optimists are forgetting is that this is a USD-denominated security not a BTC-denominated one.  If BTC rises sharply vs USD then this ends up losing value fast (measured in BTC).  That's because:

1.  The assets of the company are held in USD - so drop in BTC value when BTC rises.
2.  The capital needed to maintain same profitability rises when BTC rises - and either more capital has to be raised (by selling more shares) or profits (in BTC) fall (despite remaining same in USD).  Both ways has the impact of reducing dividend/share.

So whilst this security performs very well when BTC/USD rate is fairly stable that will cease to be the case if BTC rises significantly vs USD.  And that reduces its value massively to anyone who believes BTC WILL rise vs USD - as profits have to outstrip the likely growth in price of BTC for it to even be worth considering.

As a means of shorting BTC it's great though - decent income AND a very solid short on BTC (if BTC falls vs USD then the opposite to the above applies - and share value in BTC should go through the roof).

Just be very careful not to make the mistake of believing this to be (in practice) a BTC-denominated investment.  If you buy dollars with BTC your investment does NOT become BTC-denominated.

Fat fingered a zero, obviously I meant 0.001, though at the pace people are opening their eyes to the growth, dividend and future potential I don't think that is enough anymore. $20 million would be a "fair" valuation based on $400k sales @ 5% margin for August and I think we are about to see just that.

Would mean around 0.004 for the stock from current 0.0007

Totally right about that sell button. It's the reason why I invested in btcQuick along with the div consistent increase.

At the moment, I'm very satisfied with my investment and I can see an exponentially increased satisfaction once selling btc will be possible.

My sentiments entirely.

Looking further ahead, we would probably need to see the orders/revenue x10 from current levels, but BTCQuick is really starting to look attractive to existing bitcoin, and non-bitcoin outfits, who want to operate in this space.
Just need that 'sell' button to work now.

0.0001 OR 0.001 ?

I am investing as my ASIC mine
Long term Bull in Labcoin of course but outside of that project BTCQuick is one of the only really CLEAR possible 10x+ shares out there. 100% monthly growth for several months with increasing dividends, how do you beat that?

I think a lot of people are so used to have to calculate in crazy risk in hardware projects and mining operations with dividends crashing cue to Diff increase etc. that they don't quite realize what the kind of growth that BTCQuick shows is worth.

Edit: Maybe I should have kept my big mouth shut. Stock is taking off and I am not done buying yet
Next block of 50k is at 0.0007 and 0.00075 though. Might be worth picking them off as well, if the previous 2 months pattern repeats we will see it passing 0.001 next dividend (unless dividend increases of course... hrm)

Agreed Swede. We're just 25 btc from .0006 now!

Now trading over 0.00050 and rising. Still a company valued at around $3 million that is on track to 20% monthly dividends with 20%+ month over month growth. Should probably conservatively be valued at around 5x current share price.

Disclaimer: Obviously I am a share holder and still buying. More a guppy than a whale but this one is just printing money. If August finishes as it started we should see share price over 0.0001 within a week and a lot higher as reports come in weekly.

good news

If beyond MTGOX, share price will go to the moon

So average ~87 orders per day, and consistently rising.

At this rate, BTCQuick will be overtaking Gox soon!   

 May revenue was $ 77,350.25
 June revenue was $ 126,250.58
July 13, 2013 @ 21:45MST are $ 131,947.60!!!
 Total sales for the month of July were $ 320,721.23
August 2013 Sales as of 08-14 0:00 PM - $210,548.93!
August 2013 Sales as of 08-20-2013 4:00 PM - $309,548.93! Number of orders so far this month 1,759

Shares to sell high price, must be listed to BTCT

Nice, clean look. I like it.

The ubiquitous BTCQUICK