Topic: [CRYPTOSTOCKS] (GMP) crowdmining - page 4. (Read 25578 times)

What does it mean?

Will they start shipping our trade-in by March 1st ? Are you planing to order 20 more avalons ?

Consider a company/stock with the following attributes:

a)    It’s shares are bought and sold with bitcoins

b)   It’s valuation is in bitcoins

c)    It’s profits are in bitcoins

Now imagine those profits are hefty.

If we take common company valuation methodologies, specifically the PE Ratio of a company, and apply that within the new, small and constrained (in volume of total currency) world of bitcoin, we can potentially find ourselves in an interesting situation.

The valuation of said company, can in theory exceed the total number of bitcoins. brain melt

In 1999, the Average PE ratio of the S&P 500 was a staggering 44.20 (and has been above 65 since). By this account the bitcoin gambling site Satoshi Dice, who’s shares are traded in and valuation is in bitcoin, is worth a staggering 3.3million BTC. Or near enough ¼ of the total bitcoins currently in circulation.

Now imagine 100 companies (quite a small number of companies in the scheme of things) all traded and valued in bitcoin. Imagine each of those companies makes a measly 20,000 BTC profit per year (the same amount Satoshi Dice earned in January 2013 alone) for a total combined profit of 2million BTC. At a modest PE of 12 (at the date of writing the S&P500 PE was 17.37), those 100 companies would be worth twice the entire current pool of available bitcoins, and more than the total number of bitcoins that will ever be produced.

Economically it isn’t a problem because those share prices will only remain high whilst those companies continue to perform well. Some people might wonder what would happen if there was an attempt to sell all the shares at the same time, but simply put this would require the share price to go down massively (since otherwise sell orders would be met with buy orders) until demand becomes nil because nobody has any bitcoins to spend, and the share price drops while the exchange rate between USD and bitcoin goes MENTAL.

In other words, while the total valuation of bitcoin companies might be more than the total value of bitcoins, equilibrium will persist and a situation cannot occur in which this will become a problem. If company profits are recycled into the bitcoin economy, the phenomenon of companies total valuation being higher than the total volume of bitcoins is exacerbated (in a very positive way).

The brilliant side note to this phenomenon is that huge bitcoin profits and valuable bitcoin stocks are great for the fiat price per BTC.

Another Avalon ASIC Bitcoin miner has been delivered

Bitcoin now has it’s own mining industry with companies built off of both producing equipment and mining Bitcoins. As has been posted elsewhere, Bitcoin has gone pro.

1. yes.
2. not yet, but it will be. trade-in has a higher priority than regular batch orders when it comes to shipping, except we are still trying to figure out what is the best way to handle this.
3. yes, this has always been true I think there was some false information spreading around about that.  

Batch two re-opening is scheduled for
Monday, Feb 18, 2013 at 9am EST.

http://store.avalon-asics.com/?product=avalon-asic-batch-2

Does this mean that from June 30, 2012 to January 31, 2013:

87.98BTC / 8 mo = 10.9975 BTC / 3,473 shares = .003 BTC/share /.57 BTC = 0.55% dividend on average?

Correct me if I am wrong on that

After 5-6 weeks, the shares would pay for themselves and after that you just get pure profit from the GMP group?