Period 3, Day 3 Report - February 19, 2014
Balance Post Divs: BTC 360.36385527
Total Units: 2272 (as of Noon)
NAV/U: BTC 0.15861085
Guys, again, please don't purchase EXCH in the five minutes before Noon - even if I'm able to issue the MINE/SELL shares, this can create an issue where dividends are not paid to shares just exchanged/purchased during that time and I have to manually issue them. Thanks-
Topic: [Havelock] Bitcoin Difficulty Derivative (BDD) - page 78. (Read 290305 times)
Period 3, Day 2 Report - February 18, 2014
Balance Post Divs: BTC 336.97166824
Total Units: 2116
NAV/U: BTC 0.1592493706
Balance Post Divs: BTC 336.97166824
Total Units: 2116
NAV/U: BTC 0.1592493706
Period 3, Day 1 Report - February 17, 2014
Balance Post Divs: BTC 307.14972218
Total Units: 1921
NAV/U: BTC 0.15989053
All Dividends for MINE and SELL have been paid and the EXCH ask is back up at 0.16230094!
Balance Post Divs: BTC 307.14972218
Total Units: 1921
NAV/U: BTC 0.15989053
All Dividends for MINE and SELL have been paid and the EXCH ask is back up at 0.16230094!
Period 2 End Report - February 17, 2014
Previous Units 695
EXCH Sold 1227
Less Buybacks 1
New Total Units 1921
Previous Balance 133.33297597
Price per EXCH 0.19376446
Gross Sales of EXCH 237.7489924
Less Fees 0.9385551
Less Dividends 14.8872496
Less Buybacks 0.18926722
Net Balance 355.06689645
End of Period 2 NAV/U 0.18483440
New Difficulty 3,129,573,175
New Daily Dividend 0.00080347
New Reserve 0.16069400
NAV/U Less New Reserve = 0.18483440 - 0.16069400 = 0.0241404
SELL Dividend 0.02414040
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 0.16230094
In the future I'll be taking down the EXCH ask at 11AM instead of 1130AM to ensure I've got plenty of time to go over my numbers.
Previous Units 695
EXCH Sold 1227
Less Buybacks 1
New Total Units 1921
Previous Balance 133.33297597
Price per EXCH 0.19376446
Gross Sales of EXCH 237.7489924
Less Fees 0.9385551
Less Dividends 14.8872496
Less Buybacks 0.18926722
Net Balance 355.06689645
End of Period 2 NAV/U 0.18483440
New Difficulty 3,129,573,175
New Daily Dividend 0.00080347
New Reserve 0.16069400
NAV/U Less New Reserve = 0.18483440 - 0.16069400 = 0.0241404
SELL Dividend 0.02414040
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 0.16230094
In the future I'll be taking down the EXCH ask at 11AM instead of 1130AM to ensure I've got plenty of time to go over my numbers.
Quick question, If I bought B.SELL now would it be entitled to the dividend? thats getting paid today?
Thanks
Red
Thanks
Red
Yep, all shares of SELL issued as of Noon ET tomorrow are eligible for the dividend. I will take down the EXCH ask around 1130AM tomorrow, so no new SELL/MINE pairs will be issued between that time and when the dividend is paid.
Quick question, If I bought B.SELL now would it be entitled to the dividend? thats getting paid today?
Thanks
Red
Thanks
Red
They are paid at 12 noon EST the period after the last difficulty change for SELL. For MINE they are paid at 12 noon every day EST. Divs are processed once an hour by a script on Havelock supposedly.
Last difficulty change, SELL divs were paid at 1pm EST due to the script having to be reconfigured.
Quick question, If I bought B.SELL now would it be entitled to the dividend? thats getting paid today?
Thanks
Red
Thanks
Red
Hello:
Another newbie question:
You consistently inform us that the value of B.SELL falls by exactly the amount of the B.SELL dividend paid on the difficulty change date. I see that its market price fluctuates, as one would expect. But how do B.SELL holders make any profit if its value only falls and never rises? For example, if the issuing price is 0.12 and if dividends are exactly 0.02 each period, in 6 periods SELL would become worthless, and I presume its market price would then approach zero. What am I missing here? Obviously some of the NAV/unit for B.EXCH must be transferred from B.MINE shares (if B.MINE holders make a poor bet) to B.SELL shares, but how?
Many thanks!
Another newbie question:
You consistently inform us that the value of B.SELL falls by exactly the amount of the B.SELL dividend paid on the difficulty change date. I see that its market price fluctuates, as one would expect. But how do B.SELL holders make any profit if its value only falls and never rises? For example, if the issuing price is 0.12 and if dividends are exactly 0.02 each period, in 6 periods SELL would become worthless, and I presume its market price would then approach zero. What am I missing here? Obviously some of the NAV/unit for B.EXCH must be transferred from B.MINE shares (if B.MINE holders make a poor bet) to B.SELL shares, but how?
Many thanks!
There are four main ways with which you can earn BTC via trading/holding BDD shares. One of those ways to get SELL for less than will be paid out to it in dividends (the same is actually true with MINE).
Both MINE and SELL will go to about zero over time, at which time either MINE or both MINE and SELL will be issued their final dividends and be repurchased by the fund. MINE has a minimum threshold, but that value is very small compared to the trading price at this time. MINE will be paid out based on the Difficulty and the dividend formula. SELL gets dividends when there is excess capital in the fund that it no longer needed on hand to pay MINE dividends.
Basically, all of the fund's capital on hand will be paid out over time to MINE and SELL - if you purchase a SELL share and you, over time, are paid out more in dividends than you purchased the share for, you will earn BTC. The same holds true with MINE, if you get it at a price under the amount that it will pay out over time, you've come out net positive.
The trick here, of course, is to estimate how the Difficulty will change and adjust your estimates over time, as necessary.
It seems the dividend for sell will be 0.0237 
Yes, based on the NAV/U from Noon today, the SELL dividend would be ~0.0237 - the actual dividend will be a bit higher due to new sales of EXCH. Glad to see someone doing the math on it
It seems the dividend for sell will be 0.0237
Hello:
Another newbie question:
You consistently inform us that the value of B.SELL falls by exactly the amount of the B.SELL dividend paid on the difficulty change date. I see that its market price fluctuates, as one would expect. But how do B.SELL holders make any profit if its value only falls and never rises? For example, if the issuing price is 0.12 and if dividends are exactly 0.02 each period, in 6 periods SELL would become worthless, and I presume its market price would then approach zero. What am I missing here? Obviously some of the NAV/unit for B.EXCH must be transferred from B.MINE shares (if B.MINE holders make a poor bet) to B.SELL shares, but how?
Many thanks!
Another newbie question:
You consistently inform us that the value of B.SELL falls by exactly the amount of the B.SELL dividend paid on the difficulty change date. I see that its market price fluctuates, as one would expect. But how do B.SELL holders make any profit if its value only falls and never rises? For example, if the issuing price is 0.12 and if dividends are exactly 0.02 each period, in 6 periods SELL would become worthless, and I presume its market price would then approach zero. What am I missing here? Obviously some of the NAV/unit for B.EXCH must be transferred from B.MINE shares (if B.MINE holders make a poor bet) to B.SELL shares, but how?
Many thanks!
The instant drop in price after a dividend is only temporary. The market price of B.SELL will then adjust to what people believe the future development of the difficulty will be. If people believe B.SELL is undervalued, it will slowly creep up in price between dividend-payouts. If people believe it is overpriced, it will gradually go down.
Buyers of B.SELL make a profit if they purchase B.SELL at a price that is lower than the total amount of dividends accumulated.
Hello:
Another newbie question:
You consistently inform us that the value of B.SELL falls by exactly the amount of the B.SELL dividend paid on the difficulty change date. I see that its market price fluctuates, as one would expect. But how do B.SELL holders make any profit if its value only falls and never rises? For example, if the issuing price is 0.12 and if dividends are exactly 0.02 each period, in 6 periods SELL would become worthless, and I presume its market price would then approach zero. What am I missing here? Obviously some of the NAV/unit for B.EXCH must be transferred from B.MINE shares (if B.MINE holders make a poor bet) to B.SELL shares, but how?
Many thanks!
Another newbie question:
You consistently inform us that the value of B.SELL falls by exactly the amount of the B.SELL dividend paid on the difficulty change date. I see that its market price fluctuates, as one would expect. But how do B.SELL holders make any profit if its value only falls and never rises? For example, if the issuing price is 0.12 and if dividends are exactly 0.02 each period, in 6 periods SELL would become worthless, and I presume its market price would then approach zero. What am I missing here? Obviously some of the NAV/unit for B.EXCH must be transferred from B.MINE shares (if B.MINE holders make a poor bet) to B.SELL shares, but how?
Many thanks!
Don't know how I missed that :/
Thanks topo.
Thanks topo.
This was answered in #119?
This was answered in #119?
Please enlighten us twenty or others who were there the first time around!
twentyseventy how exactly is the payment of B.SELL dividends and the setup of the new price of B.EXCH happening? You already said that you can't lock B.SELL but what about B.EXCH?
Will you close trading on B.EXCH? Or do you leave up B.EXCH and simply put the lower order beneath?
Will you close trading on B.EXCH? Or do you leave up B.EXCH and simply put the lower order beneath?
Period 2, Day 12 Report - February 16, 2014
Balance Post Divs: BTC 339.62774428
Total Units: 1841
NAV/U: BTC 0.18448003
Difficulty increase will be tonight, so the MINE dividend will be reduced to the new rate tomorrow at Noon and the SELL dividend for Period 2 will be paid tomorrow as well.
Just a reminder NOT to leave SELL bids up tomorrow, as the value of SELL falls by exactly the amount of dividends paid out
Balance Post Divs: BTC 339.62774428
Total Units: 1841
NAV/U: BTC 0.18448003
Difficulty increase will be tonight, so the MINE dividend will be reduced to the new rate tomorrow at Noon and the SELL dividend for Period 2 will be paid tomorrow as well.
Just a reminder NOT to leave SELL bids up tomorrow, as the value of SELL falls by exactly the amount of dividends paid out
...
Hah, it's alright - it seems that there will be trolls targeting everyone that frequents this subforum, especially fund issuers.
twentyseventy,
I am sorry that you adopted my trolls. mainline has done nothing but run his mouth and make up lies since he found his way to my thread, the others just seem to be paranoid due to his noise.
For everyone else here, I am the "secret porn website dude" and this is the only forum name I use. Trolls are mad about things I made clear from day one. I have done everything I said I would do and nothing I said I wouldn't so this manufactured drama is even more ridiculous in that context. All of this is documented and can be confirmed in a few minutes.
Also, I don't even understand what is being offered in this thread. Of all the people I could be accused of being they picked this one? Hahaha
I am sorry that you adopted my trolls. mainline has done nothing but run his mouth and make up lies since he found his way to my thread, the others just seem to be paranoid due to his noise.
For everyone else here, I am the "secret porn website dude" and this is the only forum name I use. Trolls are mad about things I made clear from day one. I have done everything I said I would do and nothing I said I wouldn't so this manufactured drama is even more ridiculous in that context. All of this is documented and can be confirmed in a few minutes.
Also, I don't even understand what is being offered in this thread. Of all the people I could be accused of being they picked this one? Hahaha
Hah, it's alright - it seems that there will be trolls targeting everyone that frequents this subforum, especially fund issuers.
You gotta admit... Even for bitcoin securities, "I have a porn site but I won't tell you the addy, so give me money" is pretty hilarious.
You -- both the scammers and the suckers -- pretty much *invite* the government to step in and regulate the shit out of bitcoin.
As much as I liek your wacky financial antics, it's time you moved on.
Thanks for resolving that so quickly! 
You're very welcome!
twentyseventy,
I am sorry that you adopted my trolls. mainline has done nothing but run his mouth and make up lies since he found his way to my thread, the others just seem to be paranoid due to his noise.
For everyone else here, I am the "secret porn website dude" and this is the only forum name I use. Trolls are mad about things I made clear from day one. I have done everything I said I would do and nothing I said I wouldn't so this manufactured drama is even more ridiculous in that context. All of this is documented and can be confirmed in a few minutes.
Also, I don't even understand what is being offered in this thread. Of all the people I could be accused of being they picked this one? Hahaha
I am sorry that you adopted my trolls. mainline has done nothing but run his mouth and make up lies since he found his way to my thread, the others just seem to be paranoid due to his noise.
For everyone else here, I am the "secret porn website dude" and this is the only forum name I use. Trolls are mad about things I made clear from day one. I have done everything I said I would do and nothing I said I wouldn't so this manufactured drama is even more ridiculous in that context. All of this is documented and can be confirmed in a few minutes.
Also, I don't even understand what is being offered in this thread. Of all the people I could be accused of being they picked this one? Hahaha
Hah, it's alright - it seems that there will be trolls targeting everyone that frequents this subforum, especially fund issuers.
twentyseventy,
I am sorry that you adopted my trolls. mainline has done nothing but run his mouth and make up lies since he found his way to my thread, the others just seem to be paranoid due to his noise.
For everyone else here, I am the "secret porn website dude" and this is the only forum name I use. Trolls are mad about things I made clear from day one. I have done everything I said I would do and nothing I said I wouldn't so this manufactured drama is even more ridiculous in that context. All of this is documented and can be confirmed in a few minutes.
Also, I don't even understand what is being offered in this thread. Of all the people I could be accused of being they picked this one? Hahaha
I am sorry that you adopted my trolls. mainline has done nothing but run his mouth and make up lies since he found his way to my thread, the others just seem to be paranoid due to his noise.
For everyone else here, I am the "secret porn website dude" and this is the only forum name I use. Trolls are mad about things I made clear from day one. I have done everything I said I would do and nothing I said I wouldn't so this manufactured drama is even more ridiculous in that context. All of this is documented and can be confirmed in a few minutes.
Also, I don't even understand what is being offered in this thread. Of all the people I could be accused of being they picked this one? Hahaha
Thanks for resolving that so quickly!
You haven't yet sent back the exchanged MINE and SELL though :/
Hey guys, sorry about that. I was so focused on ensuring that everyone had their dividends that I missed sending shares to those four holders. All has been exchanged now, let me know if anyone else has any problems. Again, this will be a moot point once the auto exchange is up. Thanks for the understanding-
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