Topic: [BitFunder] btcQuick - Bitcoin Sales Service - page 43. (Read 93929 times)

There's supposed to be another offering some time today: silence=damaging

particularly when 3million unsold shares at a previous price have been unfilled

which brings me back to my original question

Youd be surprised how many "Bitcoin" businesses hold reserves in USD.  And probably less surprised at how many of them then run into problems because of it (especially when coupled with BTC-denominated debt).  As well as the ones with problems on Bitfunder (Ziggap/Bakewell being the obvious but not only two) there's ones on LTC-GLobal with similar currency-related issues (either unable to sell shares because of LTC's rising price and/or unable to fulfil obligations and/or 'borrowed' funds for fiat-related purposes which are now very hard to return).  It's not a problem limited to only one exchange.

I'd guess part of the (totally invalid/incorrect) reason some hold reserves in USD is a flawed belief that by doing so they avoid exchange-rate risks.  Others may do it simply because it makes life easier when producing accounts for tax etc.  I've yet to see a company that functioned in USD but sold shares in BTC where investors over any length of time ended up better off than if they'd just kept their BTC.

Considering that this is listed on a bitcoin stock exchange, you'd expect them to hold funds in BTC.

How capital is held (i.e. in which currency/ies) is a key part of determining valuation.  This isn't stated - only implied as being USD by results being given in USD (with BTC only estimated).  Now Ukyo appears to be saying capital is held as BTC.

How capital is held is important in at least 2 respects:

1.  It determines how the assets/book value of the company changes when exchange-rate moves (which of BTC/USD valuations is the one that changes?  It could be both if by default balanced holdings are held.).
2.  Trade volume is constrained to an extent by capital (received USD can't instantly be converted into BTC).  The upper-bound of that volume is set in the currency capital is, by default, held in.  If held as USD when idle then a rise in BTC means max volume (in BTC) falls.   Vice-versa if held in BTC.

Would be nice if issuer could confirm Ukyo's statement that BTC value doesn't change - i.e. all idle funds are held in BTC.

THis would also clarify Ukyo's statement that all profits are in BTC - which is clearly only true if no/limited USD are held.  If X% profit is made on a trade then whether that profit is in BTC or in USD depends entirely on whether the profit is left in USD or converted to BTC immediately.

Put simply:

If exchange rate is $100=B1 and company makes 5 BTC profit.
Then exchange-rate rises to $250=B1.
Does the company still have 5 BTC (and a LOT of $) more than before the trade or $500 more (and a LOT less BTC in total)?

Obviously if BTC fell then the figures would be reversed (holding USD would be better).  Issue isn't so much which is right/wrong - but which is the currency investors need to value this in?

not harsh at all, thanks for trying to make it more clear. my calc was just a rough 50mill * 0.0001 * 90usd.
i anoticed he listed profits in usd?

Think only actual question you missed was:

WIll the remaining capital from the BTCjam loan be in the company's wallet or is the issuer taking all funds already in the wallet himself?

TradeFortress asked it.

Asking what assets a company that is IPOing has isn't an unreasonable question.

If you read the description, all the BTC raised is to:

a. pay off a loan that is in BTC before BTC skyrockets higher and the interest becomes a killer.
b. put the majority BTC into the companies inventory to be able to sell larger volumes of BTC to increase profit to the shareholders.
c. be paid some money for selling part of his ownership of the company.

If you make a company, should you not be allowed to sell shares of it?

No where here does a moving USD value really matter since nothing is being converted to it, or based on it.
Even if you consider his personal profit, it's all based on BTC, based on the businesses BTC profits.
If you do not agree that the shares are not worth X of a moving USD target, then you should base your decision to buy or sell shares on that.
When were your calculations based off of? When BTC had droped to 75btc Thursday night? at 90btc the day before?
at 93btc the price as I type this, or what you estimate btc/usd pricing could be at in 2weeks, or any future point in time?
Sorry if this sounded a bit brash, I just wanted to make my point clear of how I look at it.


I don't think 24hrs of no reply during easter weekend is 'damaging'.
Wait, which questions are not being answered that are ''damaging' btcQuick's reputation?

?

Or someone asking why the owner is choosing to use what might as well be considered personal income to directly pay off the companies debt?
You can say he is selling the first 300btc worth of shares of btcQuick to the public so that he can personally pay off the loan.
You could also say that he is selling off the first 300btc worth of shares to take investment funds into the company, so the company can pay the debt.
Either way it is a moot point of if the company or he himself is paying the companies loan.
The company was originally 100% owned by the issuer. btcQuick the company, owned no shares of itself and never claimed to.

Did I miss a question somewhere in the random discussions? 

Ok I bought some shares. Do hope the OP will come in to post more info on his operation methods.

Did you account easter weekend into your share release schedule lol. What happens if the 2nd batch doesn't sell out by tomorrow?

Anyone thinking about buying shares is reading through this thread, I'm sure you have answers for some of the more accusatory questions, could we hear them? Your silence is only damaging yourself and your shareholders

bought some share hope that will be good investment

interested in buying some shares but i have a few worries.
there seems to be very little transparency, anyway we can keep track of actual profits/sales etc?
or do we just have to trust you, even though we have no name or personal information that i can see?

i guess this would be the same for many of the other shares like asicmining etc hard to know how much they are actually mining.



didnt see this answered, how come you need to raise so many btc, and already take 375btc profit yourself
already?

also is my calculation right that with 50million shares the value of btcquick is around 5000btc, or 450k usd?

Yes, disclose the holdings listed there. Although I am just pointing it out for humorous intent, as Deprived is well-known for refusing to list his holdings.

The release time for today's 7,500,000 share sale at 0.0001 each will be at 5pm CST.
I will be placing a sell order for 7,500,000 shares at 0.0001. This means that any current bids
at or over 0.0001 will get filled first come, first served.

Thank you again for your interest in btcQuick.

You mean this?  https://bitcointalksearch.org/topic/m.1670011

Please list the assets of LTC-ATF. :p

Now you're being unreasonable.  Next you'll expect companies to list their assets and/or produce accounts before they place themselves for sale.  How would people who have run our of cash to run their business/service their debts be able to sell shares in it if they had to do that?

Any plans to implement ACH or linking bank accounts to BTCQuick? It's the only reason why Coinbase has any customers. Credit/Debit card transactions and linking bank accounts would be amazing.

That's a good approach, I like it.

But if he had paid off the loan, then he wouldn't need to take 300 BTC out of the IPO.

Will the capital from the BTCJAM loan will be part of the company, or is it in the pockets of the owner (on top of the 20% Jerrod currently gets)? I'd expect the former but a clarification would be good.

If he sells the btc, he gets a % fee. He then has to purchase at _least_ that qty to continue to have btc in inventory.
If he had paid off the loan, then he would be back to square one with no inventory, and that would have defeated the purpose.