110 bitcoins in fund if worth $160 each with them charging 2% for deposits nets the fund = $352
Assuming twice that has gone in and half withdrawn = $700 in deposit fee income
So where do they make money? Donations?
Not too mention having some fund hold your bitcoin investments
Not sure I follow your thinking here as you are talking in USD and all the fund transactions are all carried out in BTC.
Let me have a go at it though.
2% is taken from deposits as you said.
As of 25Apr13 the figures for the fund
BTC Invested 111.60
Shares 387.01
NAV/Share 0.28837
USD/Share $40.88So with 111.60 invested assuming none had been withdrawn (which there has been a little), I work out the 2% should be 2.28 BTC. It doesn't really matter what the dollar value is as that changes daily with the bitcoin price. Having said that if it was worth $160 as in your example that would make it $364.80 so pretty close to what you were saying.
I have been watching the fund and am confident in saying that double that has not gone in with half withdrawn. I say that based on the growth shown in the fund. There has been a little withdrawn as shown by the number of shares dropping on 4 occasions. If nothing went in on the days of those withdrawals there was a total of 58 shares that have been withdrawn. That would account for aproximately another 14 BTC invested which would be another 0.28 on the 2% giving a total of 2.56 BTC.
Where do they make money? You ask if it is donations. The answer to that is no. The donations are for people to take part in the revenue share which has nothing to do with the GBBG Fund and is part of the bigger picture I spose you could say. The donations currently secure a Founder or Reserve member status. People can still join free but are putting themselves behind the Founders and reserve members when the initial placements are made in July. in future there will be an annual donation required to take part in revenue share as outlined in launch plan stage 3
STAGE 3- LIFETIME ACCESS AWARD
The first 10,000 members placed into matrix positions will be granted a FREE LIFETIME MEMBERSHIP. All others must make an annual donation to GBBG to participate in monthly revenue distributions and matrix bonuses. Annual donations are not required in order to be a member of GBBG or to use our FREE products and services. Annual donations are only required to participate in revenue sharing pools and matrix bonuses.
The part that details how the fund will make money is as follows;
The GBBG Bitcoin Fund is a pooled collection of bitcoins contributed by all participants and deployed in mass for the goal of growth and return. The fund managers will methodically seek out opportunities through
a) Arbitrage – the buying and selling of bitcoins;
b) BTC Capital Placements – placing bitcoins into startups that are rooted in the bitcoin economy;
c) Options – bitcoin related option markets; e) Revenue Participation – entering bitcoin revenue sharing agreements with businesses profiting through the bitcoin economy. The fund seeks to invest solely in the form of bitcoins and produce returns solely in the form of bitcoins.
This is NOT a financial instrument, banking instrument, or security. The GBBG Bitcoin Fund is entirely based in the bitcoin economy and ALL trades will be performed in bitcoins. Participants will purchase shares using bitcoins and receive bitcoins when selling shares. The fund will strategically place bitcoins into carefully selected opportunities that are designed to produce positive results.
The last blog post already details that there is a couple of investments that are moving ahead.
The managers of the GBBG Bitcoin Fund have uncovered two ventures that appear to have very strong upside potential. Both of these ventures will bring real-world product distribution and online services into the bitcoin world. They are both well planned and appear to have solid management. Our organization is negotiating some technical and capital involvement with both organizations. In return, we expect revenues and profits that will be distributable to our membership. Again, these are real-world product distribution opportunities that will help to ‘legitimize’ bitcoin and give bitcoin participants places to use their bitcoins in a standard transactionary manner.
I hope that helps answer the questions.
