For those who are not investing, I would like some input if you have the time. Which of the current terms make the fund unattractive to you. Would it be that there are no dividends or something else?
Thank you for your input in advance! If there is a consensus of a term that is unfavorable, largely I will try to adjust it so that the fund appeals to a wider audience.
I think this is a great idea, but I see couples problems that might limit investors.
1. Most of the BTC assets pay dividends, and ones that don't aren't very attractive to investors i've talked with
2. BTC has had very wild upswings in price, We could have an upswing in BTC of 15% in one week(or Down) and then it could take a year to break even if that BTC price remains stable.
3. I think alot of people would see this as shorting BTC, because most people are optimistic on BTC Price growth.
1. I think I'll revise the terms to factor in a dividend, in that case. We actually use to offer a fund with a dividend, but one of the more popular funds in the Second Life investment market had great growth due to not offering a dividend and instead using that capital for reinvestment. Offering a dividend does lower that growth by a margin, but I guess it is a trade-off in the BTC market -- especially since users don't want to have their funds laying stagnant without access to them at all.
2. I actually attempted to factor that into the return. I'll try to make that more clear to investors. Because the SL stock market has many high dividend paying companies, the majority of those shares are climbing rapidly. Our company possesses a large number of shares that are expected to grow 15% growth in next month, and they also pay a .10L per share dividend. I think that as long as we continue to approach high dividend, high growth trustworthy stocks in that market BTC price growth will not harm the price in the long run (week by week it looks very jumpy, not only because of BTC-SL price but also because of stock price fluctuation.) As far as I can tell, the BTC price is trying to normalize around 12-12.2USD per BTC, and that a decent sized sell order could bring it back down to $11.4. I'm hoping the market can find stability at that point as the trend seems to be. I originally wrote up the fund plan when BTC was stable in the 7 dollar range. However, with the other investments that were available at the time it wasn't worth it to enter the market. Let me know if that helps to address that concern.
3. It's possible that they would see it that way; however, while shorting would provide incredible profits for BTC customers, there is also a fair amount of profit to be made if the price stabilizes or raises at a steady 2% per month. It honestly depends on when investors think the price is going to stabilize. I think the fund can be quite competitive compared to many investments, especially with the recent defaults in the long-term deposit BTC market, as well as the closure of the GLBSE.
Edit: I updated the OP to reflect what I wrote here including adding 30% of profit per month as a dividend