[Havelock] Bitcoin Difficulty Derivative (BDD) - page 57.

twentyseventy

legendary

Activity: 1386

Merit: 1000

2014-08-08 12:03:57 dividend B.MINE ฿0.06907248
2014-08-08 12:02:16 sell 200 ฿0.01475000 B.MINE

The dividents ware a little bit late, but I am sure you will correct it.

Dividends are run automatically on Havelock's script, I don't have control of the exact timing that dividends are issued. They actually always run a little after Noon.

Dividends are paid to whomever holds the MINE share at that time, so the new holder of the MINE shares received the dividends, as they should have. Just like SELL divs, be sure that they've been paid that day before selling on the market.

twentyseventy

legendary

Activity: 1386

Merit: 1000

Period 17, Day 0 Report - August 8, 2014

Balance Post Divs: BTC 311.36627347

Total Units: 12777

NAV/U: BTC 0.02436927

twentyseventy

legendary

Activity: 1386

Merit: 1000

Period 16 End Report - August 8, 2014

Previous Units 12515
EXCH Sold 262
Less Buybacks 0
New Total Units 12777

Previous Balance 328.26220943
Price per EXCH 0.02701639
Gross Sales of EXCH    7.07829418

Less Fees       0.02831328
Less Dividends       22.18017340
Less Buybacks 0
Less Mgmt Fee 0.13744258
Net Balance       312.99457435

End of Period NAV/U    0.02449671

New Difficulty       19,729,645,941
New Daily Dividend 0.00012744
New Reserve per Unit    0.02548800

NAV/U Less New Reserve = 0.02449671 - 0.02548800= -0.00099129

SELL Dividend None (Because NAV/U is less than the new Reserve (200 Days of Dividends))

Days of Dividends On Hand ~192

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 0.02523161

RoninMD

newbie

Activity: 20

Merit: 0

It's August. Looks like people are cashing out of bitcoin to pay for school supplies. Same thing happening at the stock markets.

twentyseventy

legendary

Activity: 1386

Merit: 1000

Quote from: junkonator on August 07, 2014, 02:50:08 PM

Cool that you quote this exact post. This one honestly hit me like a truck back then. I thought I had DMS figured through and through but those were several paragraphs of news to me!

I felt the same way! It seems somewhat obvious in retrospect now, but you can tell that even he felt that he was 'giving something away' when he said it.

junkonator

full member

Activity: 149

Merit: 100

Cool that you quote this exact post. This one honestly hit me like a truck back then. I thought I had DMS figured through and through but those were several paragraphs of news to me!

twentyseventy

legendary

Activity: 1386

Merit: 1000

twentyseventy

legendary

Activity: 1386

Merit: 1000

Period 16, Day 11 Report - August 6, 2014

Balance Post Divs: BTC 314.70924775

Total Units: 12777

NAV/U: BTC 0.02463091

Hey guys, have been very busy lately, so I appreciate anyone answering questions in the thread here.

luigii

full member

Activity: 182

Merit: 100

Quote from: Lohoris on August 06, 2014, 03:57:37 AM

Quote from: luigii on August 06, 2014, 12:49:43 AM

Thanks for an explanation! One more question. But I can just buy B.MINE and hold to it. Do I need to buy EXCH?

You can either
- buy MINE
or
- buy EXCH, exchange it for MINE+SELL, sell SELL and keep MINE

obviously the first one is simpler, but in some strange occasion the second one might be more profitable (though I guess there already is a bot ready to do that)

Thanks!

Lohoris

hero member

Activity: 630

Merit: 500

Bitgoblin

Quote from: luigii on August 06, 2014, 12:49:43 AM

Thanks for an explanation! One more question. But I can just buy B.MINE and hold to it. Do I need to buy EXCH?

You can either
- buy MINE
or
- buy EXCH, exchange it for MINE+SELL, sell SELL and keep MINE

obviously the first one is simpler, but in some strange occasion the second one might be more profitable (though I guess there already is a bot ready to do that)

luigii

full member

Activity: 182

Merit: 100

Quote from: jjdub7 on August 05, 2014, 04:58:02 PM

Quote from: luigii on August 05, 2014, 03:18:43 PM

Hey guys,

First of all i'm a total noob in this market and all this financial instruments, but studying and learning.

Will this BDD dividend value always go downwards as I see in the trend or there a way to go upwards? Are this funds going towards closure or is it possible to invest in them longterm?

Bare with me if you can, hope I wont cause to much trouble!

BDD is a pseudo zero-sum game where the existing capital in the fund is paid out to MINE holders on a daily basis. New capital enters the fund when people buy EXCH shares, which are sold at a premium. If enough people were to enter into the security by purchasing new EXCH shares, the fund's value could go up, though this would require difficulty to decrease so that the 200 days' worth of reserve payments to MINE that the fund holds will increase. If people buy EXCH shares and the difficulty rises, the excess is paid out to SELL holders.

Thanks for an explanation! One more question. But I can just buy B.MINE and hold to it. Do I need to buy EXCH?

jjdub7

hero member

Activity: 938

Merit: 502

Quote from: luigii on August 05, 2014, 03:18:43 PM

Hey guys,

First of all i'm a total noob in this market and all this financial instruments, but studying and learning.

Will this BDD dividend value always go downwards as I see in the trend or there a way to go upwards? Are this funds going towards closure or is it possible to invest in them longterm?

Bare with me if you can, hope I wont cause to much trouble!

BDD is a pseudo zero-sum game where the existing capital in the fund is paid out to MINE holders on a daily basis. New capital enters the fund when people buy EXCH shares, which are sold at a premium. If enough people were to enter into the security by purchasing new EXCH shares, the fund's value could go up, though this would require difficulty to decrease so that the 200 days' worth of reserve payments to MINE that the fund holds will increase. If people buy EXCH shares and the difficulty rises, the excess is paid out to SELL holders.

luigii

full member

Activity: 182

Merit: 100

Hey guys,

First of all i'm a total noob in this market and all this financial instruments, but studying and learning.

Will this BDD dividend value always go downwards as I see in the trend or there a way to go upwards? Are this funds going towards closure or is it possible to invest in them longterm?

Bare with me if you can, hope I wont cause to much trouble!

twentyseventy

legendary

Activity: 1386

Merit: 1000

Period 16, Day 10 Report - August 5, 2014

Balance Post Divs: BTC 316.42392115

Total Units: 12777

NAV/U: BTC 0.02476511

twentyseventy

legendary

Activity: 1386

Merit: 1000

Period 16, Day 9 Report - August 4, 2014

Balance Post Divs: BTC 318.13859455

Total Units: 12777

NAV/U: BTC 0.02489931

twentyseventy

legendary

Activity: 1386

Merit: 1000

Period 16, Day 8 Report - August 3, 2014

Balance Post Divs: BTC 319.85326795

Total Units: 12777

NAV/U: BTC 0.02503351

twentyseventy

legendary

Activity: 1386

Merit: 1000

Period 16, Day 7 Report - August 2, 2014

Balance Post Divs: BTC 321.56794135

Total Units: 12777

NAV/U: BTC 0.02516771

jjdub7

hero member

Activity: 938

Merit: 502

Quote from: jjdub7 on August 02, 2014, 08:17:26 AM

Quote from: junkonator on August 02, 2014, 06:40:45 AM

Quote from: jjdub7 on August 02, 2014, 03:41:04 AM

Hasn't it been established that the major mining operators are colluding now to create a shortage in the supply? Ghash has been producing significantly less blocks over the past weeks - at one point they fell below Discus Fish in the 24 hour numbers.

Huh? Where can I read up on this?

No, sorry, not operators - I meant hardware manufacturers (but mechanically, its the same). Just because friedcat, for example, has 20PH worth of chips assembled in miners doesn't mean he's going to dump ASICminer's whole inventory on the market at once. He's going to price-discriminate, pricing AM hardware by customer segment, quantity ordered, location, etc. Like any good CEO, he's using the pricing strategy to both maximize his profits by getting the people willing to pay the most first (same as Bitmain's batched, price-tiered S3 release) and by restricting the added supply of bitcoins flowing onto the market from the additional hardware (thereby making the hardware itself more valuable, as the bitcoin it can mine stays at a higher value).

It helps to think of buying mining equipment as buying bitcoin futures realized as coupon payments from your mining pool.

http://www.coindesk.com/private-china-meeting-bitcoin-mining-industry-leaders/

Although my point about Ghash remains - they did have a massive decrease in blocks for the first half of the period (hardware maintenance/upgrade?).

Granted, when a new generation/smaller process node hitting the market will blow out the difficulty regardless in most cases. Imagine if all the major manufacturers announced they were releasing 14nm chips in December...the B.MINE price wouldn't drop so much as shift downwards.

jjdub7

hero member

Activity: 938

Merit: 502

Quote from: junkonator on August 02, 2014, 06:40:45 AM

Quote from: jjdub7 on August 02, 2014, 03:41:04 AM

Hasn't it been established that the major mining operators are colluding now to create a shortage in the supply? Ghash has been producing significantly less blocks over the past weeks - at one point they fell below Discus Fish in the 24 hour numbers.

Huh? Where can I read up on this?

No, sorry, not operators - I meant hardware manufacturers (but mechanically, its the same). Just because friedcat, for example, has 20PH worth of chips assembled in miners doesn't mean he's going to dump ASICminer's whole inventory on the market at once. He's going to price-discriminate, pricing AM hardware by customer segment, quantity ordered, location, etc. Like any good CEO, he's using the pricing strategy to both maximize his profits by getting the people willing to pay the most first (same as Bitmain's batched, price-tiered S3 release) and by restricting the added supply of bitcoins flowing onto the market from the additional hardware (thereby making the hardware itself more valuable, as the bitcoin it can mine stays at a higher value).

It helps to think of buying mining equipment as buying bitcoin futures realized as coupon payments from your mining pool.

http://www.coindesk.com/private-china-meeting-bitcoin-mining-industry-leaders/

Although my point about Ghash remains - they did have a massive decrease in blocks for the first half of the period (hardware maintenance/upgrade?).

junkonator

full member

Activity: 149

Merit: 100

Quote from: jjdub7 on August 02, 2014, 03:41:04 AM

Hasn't it been established that the major mining operators are colluding now to create a shortage in the supply? Ghash has been producing significantly less blocks over the past weeks - at one point they fell below Discus Fish in the 24 hour numbers.

Huh? Where can I read up on this?

Topic: [Havelock] Bitcoin Difficulty Derivative (BDD) - page 57. (Read 290305 times)