Very exciting to see a Difficulty decrease! Even if it was less than a 1% decrease, I believe that it finally signals the end of the end of the mining boom started by the run-up to $1,000. I know that new equipment is coming, however-
For the first time in BDD history (11 months now) MINE holders will receive more per day this Period than the Period before! Enjoy it, MINErs
The fund now holds about 158 days worth of dividends at the current dividend rate. I have reflected my repayment of the management fee overpayment this round in the 'Less Fees' field.
Period 25 End Report - December 3, 2014
Previous Units 18550
EXCH Sold 1127
Less Buybacks 0
New Total Units 19677
Previous Balance 200.83108274
Price per EXCH 0.01115126
Gross Sales of EXCH 12.56747002
Less Fees 0.03397064
Less Dividends 16.84080792
Less Buybacks 0.00000000
Less Mgmt Fee 0.24401804
Net Balance 196.27975616
End of Period NAV/U 0.00997508
New Difficulty 40,007,470,271
New Daily Dividend 0.00006285
New Reserve per Unit 0.01257000
New Reserve Less NAV/U = 0.01257000 - 0.00997508 = -0.00259492
SELL Dividend None (Because NAV/U is less than 200 Days of Dividends)
Days of Dividends On Hand ~158.7
You'll notice that I calculate the new Dividend to eight digits and multiply that times 200 Days to get the new Reserve. Those of you that did your own calculations may come up with a slightly different number if you chose not to round or to round elsewhere.
New EXCH Sales Price 0.01027433
Topic: [Havelock] Bitcoin Difficulty Derivative (BDD) - page 48. (Read 290235 times)
Period 25, Day 13 Report - December 2, 2014
Balance Post Divs: BTC 196.25797589
Total Units: 19675
NAV/U: BTC 0.00997499
Difficulty will change later tonight - very excited to see if it will be a decrease!
Balance Post Divs: BTC 196.25797589
Total Units: 19675
NAV/U: BTC 0.00997499
Difficulty will change later tonight - very excited to see if it will be a decrease!
Period 25, Day 12 Report - December 1, 2014
Balance Post Divs: BTC 197.44193861
Total Units: 19671
NAV/U: BTC 0.01003720
Balance Post Divs: BTC 197.44193861
Total Units: 19671
NAV/U: BTC 0.01003720
Period 25, Day 11 Report - November 30, 2014
Balance Post Divs: BTC 198.52764055
Total Units: 19658
NAV/U: BTC 0.01009907
Balance Post Divs: BTC 198.52764055
Total Units: 19658
NAV/U: BTC 0.01009907
Period 25, Day 10 Report - November 29, 2014
Balance Post Divs: BTC 199.75410317
Total Units: 19658
NAV/U: BTC 0.01016146
Balance Post Divs: BTC 199.75410317
Total Units: 19658
NAV/U: BTC 0.01016146
Period 25, Day 9 Report - November 28, 2014
Balance Post Divs: BTC 200.98056579
Total Units: 19658
NAV/U: BTC 0.01022385
Balance Post Divs: BTC 200.98056579
Total Units: 19658
NAV/U: BTC 0.01022385
Period 25, Day 8 Report - November 27, 2014
Balance Post Divs: BTC 202.19613828
Total Units: 19657
NAV/U: BTC 0.01028621
Balance Post Divs: BTC 202.19613828
Total Units: 19657
NAV/U: BTC 0.01028621
Period 25, Day 7 Report - November 26, 2014
Balance Post Divs: BTC 203.42253851
Total Units: 19657
NAV/U: BTC 0.01034860
Balance Post Divs: BTC 203.42253851
Total Units: 19657
NAV/U: BTC 0.01034860
2070 - let's say for a moment that difficulty is about to just start dropping out of the sky for whatever reason (idk, maybe Terracoin makes the comeback of the millennium). If the reserve were to fall below 0.2 mBTC solely by payouts alone (not by virtue of difficulty increase as the simple end-game by increase describes), does the fund close with remaining reserves paid out to MINE holders?
The End Game via Decrease actually just pays out daily dividends to MINE holders as long as it can. There is no .2mBTC limit to close the fund, it would just keep paying daily divs until there is not enough for one more daily payout. After that time, the remaining assets would be split among MINE holders as a final dividend.
2070 - let's say for a moment that difficulty is about to just start dropping out of the sky for whatever reason (idk, maybe Terracoin makes the comeback of the millennium). If the reserve were to fall below 0.2 mBTC solely by payouts alone (not by virtue of difficulty increase as the simple end-game by increase describes), does the fund close with remaining reserves paid out to MINE holders?
Period 25, Day 6 Report - November 25, 2014
Balance Post Divs: BTC 201.13142515
Total Units: 19334
NAV/U: BTC 0.01040299
Balance Post Divs: BTC 201.13142515
Total Units: 19334
NAV/U: BTC 0.01040299
Silly question: What happens to the value of exch if the difficulty decreases at the next period? Shouldn't the value go up?
EXCH is always going to be sold at the NAV/U + 3%. If difficulty decreases, this just means that the Reserve becomes more deficient (there are fewer and fewer funds on hand to pay MINE dividends - the chance of SELL dividends decreases).
If Difficulty increases, MINE will receive a bigger payout per day but it will never received more than the NAV/U (total assets of BDD divided by total number of units). Does that help?
Silly question: What happens to the value of exch if the difficulty decreases at the next period? Shouldn't the value go up?
Having re-read my post I realized I forgot to mention that I liked the ride so far and you did a great job 
Haha now worries; thanks for saying so! I don't mind constructive criticism. I think there are some issues to address to take into account the changing ecosystem here.
Having re-read my post I realized I forgot to mention that I liked the ride so far and you did a great job
For ppl buying B.MINE as a replacement for another mining asset this fund has become unattractive. For one it's the obvious reason that without liquidity in B.SELL it's tedious to get MINE only. Buying MINE @ market price costs 0.0091 for 5GH/s where cex costs around .00825 (I'm not too sure whether this comparison is entirely fair though tbh). Adding to that there's the end-game that requires brain power to grasp and adds another obstacle if in a buy-and-forget mind-set.
Buying SELL has become a big gamble since it's unclear if and when there will be dividends in this round at all. Then there are the timing problems you mentioned where you will always overpay when buying B.EXCH even if you buy right after diff-change. The point deprived wanted to make when DMS was first offered was that people were overpaying for mining assets (and creating a way for non-believers to capitalize on this assumption). Because people aren't overpaying any more the raison d'être for BDD in it's current form is no longer valid. I don't think an offer with 5TH/s will solve that. For the next round the changes necessary are not just changing numbers around in the current model but rather a complete overhaul of the fund that represents the "new truth" that mining has levelled out and won't rise at 20% per diff-change any more.
We should start discussing how the fund can be changed for the next round.
Buying SELL has become a big gamble since it's unclear if and when there will be dividends in this round at all. Then there are the timing problems you mentioned where you will always overpay when buying B.EXCH even if you buy right after diff-change. The point deprived wanted to make when DMS was first offered was that people were overpaying for mining assets (and creating a way for non-believers to capitalize on this assumption). Because people aren't overpaying any more the raison d'être for BDD in it's current form is no longer valid. I don't think an offer with 5TH/s will solve that. For the next round the changes necessary are not just changing numbers around in the current model but rather a complete overhaul of the fund that represents the "new truth" that mining has levelled out and won't rise at 20% per diff-change any more.
We should start discussing how the fund can be changed for the next round.
Zero "maintenance" "fees" and zero variance on payments for BDD are what makes this asset gold. (Don't know what Maintenance other fund managers are doing, really - hello, Scrpytx?)
Thanks to both of you for the comments. Junkonator, it is important to realize that the real purpose here is to let the market decide what hashing power is worth. People may want a set it and forget it model, which as been offered in the past and continues to be offered today.
It used to be PMBs - the operator would essentially sell 'bonds' at a fixed price and hope that the buyers would be on the losing side of that bet. Now it is mining pass-throughs like PETA and CEX where maintenance fees are a big issue. However, the purpose of BDD is to let the market decide; I'll agree that there are liquidity issues and I will take to heart the idea of offering some changes for the next round.
Period 25, Day 5 Report - November 24, 2014
Balance Post Divs: BTC 202.14165099
Total Units: 19316
NAV/U: BTC 0.01046498
Period 25, Day 4 Report - November 23, 2014
Balance Post Divs: BTC 201.59894543
Total Units: 19157
NAV/U: BTC 0.01052351
After reviewing last period's numbers, I realized that I had not lowered my (absolute) management fees last period. This resulted in an overpayment of management fees to me of 0.01629936 BTC (~16.2 mBTC). I will refund this to BDD's balance which will be reflected in the report for today that I'm about to issue.
Balance Post Divs: BTC 201.59894543
Total Units: 19157
NAV/U: BTC 0.01052351
After reviewing last period's numbers, I realized that I had not lowered my (absolute) management fees last period. This resulted in an overpayment of management fees to me of 0.01629936 BTC (~16.2 mBTC). I will refund this to BDD's balance which will be reflected in the report for today that I'm about to issue.
I don't understand why bigger players would need a bigger hashing-power option as they can always just buy more 5 GH/s-es . What's the reasoning behind this?
In theory that makes sense, but the issue that I've seen so far is the lack of liquidity. If you want to but 10BTC of MINE, for example, you can buy it on-market or you can buy EXCH and sell off the SELL. However, you're going to see a lot of slippage either way.
I'm not sure if the decrease in total activity by volume is a result of the decrease in NAV/U, decrease in the BTC/USD rate, decrease of total Havelock volume, or a combination of the three.
For ppl buying B.MINE as a replacement for another mining asset this fund has become unattractive. For one it's the obvious reason that without liquidity in B.SELL it's tedious to get MINE only. Buying MINE @ market price costs 0.0091 for 5GH/s where cex costs around .00825 (I'm not too sure whether this comparison is entirely fair though tbh). Adding to that there's the end-game that requires brain power to grasp and adds another obstacle if in a buy-and-forget mind-set.
Buying SELL has become a big gamble since it's unclear if and when there will be dividends in this round at all. Then there are the timing problems you mentioned where you will always overpay when buying B.EXCH even if you buy right after diff-change. The point deprived wanted to make when DMS was first offered was that people were overpaying for mining assets (and creating a way for non-believers to capitalize on this assumption). Because people aren't overpaying any more the raison d'être for BDD in it's current form is no longer valid. I don't think an offer with 5TH/s will solve that. For the next round the changes necessary are not just changing numbers around in the current model but rather a complete overhaul of the fund that represents the "new truth" that mining has levelled out and won't rise at 20% per diff-change any more.
We should start discussing how the fund can be changed for the next round.
Zero "maintenance" "fees" and zero variance on payments for BDD are what makes this asset gold. (Don't know what Maintenance other fund managers are doing, really - hello, Scrpytx?)
I don't understand why bigger players would need a bigger hashing-power option as they can always just buy more 5 GH/s-es . What's the reasoning behind this?
In theory that makes sense, but the issue that I've seen so far is the lack of liquidity. If you want to but 10BTC of MINE, for example, you can buy it on-market or you can buy EXCH and sell off the SELL. However, you're going to see a lot of slippage either way.
I'm not sure if the decrease in total activity by volume is a result of the decrease in NAV/U, decrease in the BTC/USD rate, decrease of total Havelock volume, or a combination of the three.
For ppl buying B.MINE as a replacement for another mining asset this fund has become unattractive. For one it's the obvious reason that without liquidity in B.SELL it's tedious to get MINE only. Buying MINE @ market price costs 0.0091 for 5GH/s where cex costs around .00825 (I'm not too sure whether this comparison is entirely fair though tbh). Adding to that there's the end-game that requires brain power to grasp and adds another obstacle if in a buy-and-forget mind-set.
Buying SELL has become a big gamble since it's unclear if and when there will be dividends in this round at all. Then there are the timing problems you mentioned where you will always overpay when buying B.EXCH even if you buy right after diff-change. The point deprived wanted to make when DMS was first offered was that people were overpaying for mining assets (and creating a way for non-believers to capitalize on this assumption). Because people aren't overpaying any more the raison d'être for BDD in it's current form is no longer valid. I don't think an offer with 5TH/s will solve that. For the next round the changes necessary are not just changing numbers around in the current model but rather a complete overhaul of the fund that represents the "new truth" that mining has levelled out and won't rise at 20% per diff-change any more.
We should start discussing how the fund can be changed for the next round.
Period 25, Day 3 Report - November 22, 2014
Balance Post Divs: BTC 197.67096485
Total Units: 18687
NAV/U: BTC 0.01057799
Balance Post Divs: BTC 197.67096485
Total Units: 18687
NAV/U: BTC 0.01057799
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