If you invest money into something that is tied to US dollars and BTC rises in value, you will lose money priced in BTC. The same thing happenes whether or not you purchase a kiln in LTC (yes, ART on LTC-GLOBAL), an LTC bond denominated in BTC, mining hardware or mining bonds (i.e. BMF, CPA, GIGAMINING, YABMC etc.) or even the outright purchase of a call on BTC denominated in us dollars. That's why it was not logical to complain when your own company ART lost 99.5% of it's value.
Back in August IIRC, MPOE Bond lost 46%. Just like BMF. And now they lost like 30% and 25% back to back. C'est la vie. I think it's time that investors here face the reality that BTC is not a magical shield against investing into a US dollar denominated asset, and that when you invest in something you no longer hold BTC, but the asset you have invested in. So when people say that they lost money in something like MPOE Bond that isn't really true. They didn't gain or lose any MPOE Bonds. But the MPOE Bonds themselves are not worth as much as before. That's just a fact. And when you get served your .18 BTC on the dollar, you should say to yourself "Hey, that's worth $23 now, twice as much as I invested!". Not "Shit I just lost 80% of my money". One of these feelings is logical -- one is not.
What happened here was not special. It was predictable. I myself sold out of CoinBr.MPBPT-O back in March because I saw it coming. I sold out at about 0.102 (at a profit). And, as much as I would love to say "ha ha" to MPOE-PR, the fact here is that this is not their "fault".
What happened is simple and easily explained. As the price rose, MPOE Bond wrote/sold and had executed more and more calls at a loss. Lesson learned: Do not invest in MPOE Bond if the price is expected to move in only one direction throughout the month. OTOH stable prices or volatile prices in a trading channel will likely be more profitable.
- MPOE bond isn't USD denominated.
- in April the BTC/USD price didn't go in one direction only - still huge loss
- the bot is incompetent ... and the fact that when we've seen March results there was no way out for April investment makes this second loss painfull but expected
- question is if the bot's incompetence isn't intended ... and how much MP made on this
- I don't expect anyone covering these bonds which can simply be made to loose again
- at least I won't offer a single satoshi to cover this unless I'm reimbursed for these losses which I can't imagine