Hi guys,
I think that PIMP bonds are very undervalued so I will put here some reasons behind my rationale:
- Investors could get all the best features of mining bonds, that is getting dividends without the hassle of maintenance and electricity costs.
- Given the way he calculates difficulty variations, his dividends will be always better or at least equal to similar mining bonds.
- Because of his statement of providing free upgrades to BFL ASICs when available.
If/When the BFL ASICs arrive, this could really boost the MH/s he will be providing for the same price, but even if they do not arrive any time soon, his current price of 0.25 per share is also a good deal.
As a result of what I think has been a thoughtful evaluation I have heavily invested in Pimp bonds.
I am truly optimistic in the evolution of this asset for long term investors, so if you are one of them I urge you to make your own analysis and share your own opinions.
Help me understand.
These bonds are sold at 0.25 BTC, they currently yield 0.0044315 BTC per week, correct? Thats what, ~7% per month? So you are looking at ~40% ROI on your investment as dividends by December, at which time, mining revenue will half. So you'd be lucky if dividend payments compensate the expected loss in value of your bonds and thats when completely ignoring the rather obvious trend over the past 6 months where difficulty has increased steadily by almost 10% per month on average; a trend I suspect will accelerate when BFL will start shipping its minirigs in volume (the ones I know about alone represent almost 1TH), and a trend that will explode once they or anyone else starts shipping ASICs.
I dont understand how anyone can believe this is a sound investment. Mind you, that goes for all mining bonds on GLBSE, not just Philj's..
I really really wish I could short sell them. Perhaps I should instead set up a virtual mining bond thats not backed by any mining equipment but will just pay out dividends based on difficulty.
