Topic: [Havelock] Bitcoin Difficulty Derivative (BDD) - page 14. (Read 290235 times)

Round 2, Period 17, Day 4 Report - January 17, 2016

Balance Post Divs: BTC 13.80633710

Total Units: 3900

NAV/U: BTC 0.00354008

Approximate days of MINE Dividends left: 7.97

Round 2, Period 17, Day 3 Report - January 16, 2016

Balance Post Divs: BTC 15.53657210

Total Units: 3900

NAV/U: BTC 0.00398373

gotta be careful with derivatives, both here and in the fiat markets.  they're a fast-paced game.

Edit: And yeah, that's part of it too is that you'll have to project out on the life of the asset as well.

Round 2, Period 17, Day 2 Report - January 15, 2016

Balance Post Divs: BTC 17.26238025

Total Units: 3899

NAV/U: BTC 0.00442738

I think it's time to introduce some changes to the BDD fee attribution for the new round. BDD is working because of its excellent management - 2070 can't be thanked enough! Does anyone here even remember deprived? - and because there is the possibility to always buy and sell on the market at a reasonable price and in reasonable volume. Big parts of this liquidity are provided daily by market makers and arbitrageurs.
To make BDD more dynamic I propose a simple change:

Accounts with huge volume should get a discount on the management fees of B.EXCH.

For everybody who isn't a market maker or arbitrageur this has the benefit of more liquidity because market prices will be closer to their actual valuation. Because the market makers will pass along their reduced fees, tighter valuations can then also be traded. Looking at the past few months I think there is a huge amount of trades that didn't happen because the bid and ask gap was too far apart. A 3% markup is a big variable for a valuation as tight as the one we're looking at. The higher traded volume in turn means higher profits for 2070, too.

The proposal in detail
Half of the management fees (1.5% of NAV/U - the current management fee is 3% of NAV/U) will be waived for trades done by accounts/traders with a volume of 10 BTC+ within a period of 1 month.
This way the amount of extra work for 2070 increases only by one check of account volumes per month (or other period) and it's completely transparent to outsiders.

The technical details
How and when to determine the volume and how to give a discount?

• Look at the trade volume of each account over a certain period of time and give a discount on the fee for the following period for high volume accounts - this is most probably difficult/impossible to do if havelock doesn't implement that technically.
• Look at the trade volume of each account over a certain period of time and reimburse parts of the management fee if the volume was high afterwards - probably the easiest way to handle this
• Depending on the data provided by havlock to the issuers a rolling average model could also be possible - this would most probably mean more work for 2070 though and therefore is not a preferable option

 I'm looking forward to discussions and hope to also hear from parties who are not 2070 or market makers

Thanks 2070 for your unique-in-BTC management!

Round 2, Period 17, Day 1 Report - January 14, 2016

Balance Post Divs: BTC 18.99217160

Total Units: 3899

NAV/U: BTC 0.00487103

Round 2, Period 17, Day 0 Report - January 13, 2016

Balance Post Divs: BTC 20.69539274

Total Units: 3894

NAV/U: BTC 0.00531468

Round 2, Period 16 End Report - January 13, 2016

Previous Units              3712
EXCH Sold                   182
Less Buybacks              0
New Total Units        3894

Previous Balance          44.73684621
Gross Sales of EXCH      1.80799640

Less Fees                    0.00723199
Less Dividends              24.06221636
Less Buybacks              0
Less Mgmt Fee              0.05262825
Net Balance            22.42276601

End of Period NAV/U     0.00575828

New Difficulty                  113,354,299,801
New Daily Dividend         0.00044365
New Reserve per Unit        0.07985700

NAV/U less New Reserve = 0.00575828 - 0.07985700 = -0.07409872

SELL Dividend                 0 (Because there are less than 180 days of dividends on hand)

Days of Dividends On Hand   12.97

Round 2, Period 16, Day 12 Report - January 12, 2016

Balance Post Divs: BTC 22.42296584

Total Units: 3894

NAV/U: BTC 0.00575833

Round 2, Period 16, Day 11 Report - January 11, 2016

Balance Post Divs: BTC 24.29564572

Total Units: 3892

NAV/U: BTC 0.00624245


 

.. Ya what he said above, that or an easier way is just use this site and type in 100 gh/s per 1 share you own.

https://alloscomp.com/bitcoin/calculator


Its 99.99% accurate of what you'll make each day

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Sure, it's in the OP:

Round 2, Period 16, Day 10 Report - January 10, 2016

Balance Post Divs: BTC 26.17984076

Total Units: 3892

NAV/U: BTC 0.00672657

Round 2, Period 16, Day 9 Report - January 9, 2016

Balance Post Divs: BTC 28.06403580

Total Units: 3892

NAV/U: BTC 0.00721069

Could you please advise how the hash rate is calculated? Is it based on the daily average of found blocks calculated with the current difficulty? I am thinking in terms of short/medium/long term variance.

Thank you

Round 2, Period 16, Day 8 Report - January 8, 2016

Balance Post Divs: BTC 29.90976141

Total Units: 3887

NAV/U: BTC 0.00769481


This is BDD working how it is supposed to be - the NAV/U is decreasing steadily (as it has been for the whole Round) but, as a percentage decrease per day, it looks relatively large. If the price of MINE + SELL is more than the price of EXCH (NAV/U + 3%), then there is an arbitrage opportunity - buy EXCH and sell MINE and SELL into the market. I know for a fact that there is at least one person trading on this opportunity-

I see the resale value of the units going down quite quickly...any advice on how I should take that? Is it just generally accepted to be the way it will be? Or is this a sudden dump from someone?

Well, it's a bit complicated, so do take the time to read the OP - there's a lot of important information there. I would wait until the next Round of BDD starts, sometime in the next 15-45 days depending on difficulty increases. At the beginning (and most of the middle) of the Round the buyers of MINE and SELL are betting against each other. Each unit of EXCH purchased is split into 1 MINE and 1 SELL. If the NAV/U (the value of 1 MINE plus 1 SELL) is 1 BTC, for instance, and you purchase MINE, then the most you can profit is the value of 1 less the value of SELL.

So, if the market value of MINE was .9 and the market value of SELL is .1, then you'd buy 100BTC of MINE (~111 units) and have a chance at profiting .1 per share (11.1 BTC). That 'chance' depends on how the difficulty rises, or falls, and when it does so. Again, read the OP and then re-read it; it's very important.

Round 2, Period 16, Day 7 Report - January 7, 2016

Balance Post Divs: BTC 31.79153585

Total Units: 3887

NAV/U: BTC 0.00817893

Hey there,

I'm looking to invest my BTC, and I stumbled upon Havelock Investments. Could someone explain how someone purchasing B.MINE profits? I'm a bit confused about where the money is coming from. If people purchase 100 BTC worth of B.MINE, then won't B.MINE pay out 100 BTC worth of dividends throughout the round?

Thanks.