[Proposal] GLBSE share brokerage ( Index Fund ?)

Bitcoin Oz

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Quote from: BoardGameCoin on June 24, 2012, 01:45:07 AM

From the perspective of GLBSE, it would be a constant 0 BTC return, so there's no reason to even trade on GLBSE. From the perspective of a fiat holder, it would track the market cap of the bitcoin market, but it could also affect it as more people buy in or cash out. You'd probably have to do volume rate-limiting to prevent it from being an avenue for significant market manipulation. I'm sure there are several people with many $$$ and many hundreds of people with > $1000 who would be willing to pay a fixed one-time 2% cost for this service, and perhaps a 0.5% yearly cost for some form of insurance. The key would be getting enough real-world accountability to check the relevant securities trading boxes in your home nation.

-bgc

The CPA could handle the insurance part....
If the volume was large enough one could setup a real business. In Australia if your turnover is less than 75 000 you dont have GST. But anything over it you have to pay 10% as a "service".

BoardGameCoin

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From the perspective of GLBSE, it would be a constant 0 BTC return, so there's no reason to even trade on GLBSE. From the perspective of a fiat holder, it would track the market cap of the bitcoin market, but it could also affect it as more people buy in or cash out. You'd probably have to do volume rate-limiting to prevent it from being an avenue for significant market manipulation. I'm sure there are several people with many $$$ and many hundreds of people with > $1000 who would be willing to pay a fixed one-time 2% cost for this service, and perhaps a 0.5% yearly cost for some form of insurance. The key would be getting enough real-world accountability to check the relevant securities trading boxes in your home nation.

-bgc

Bitcoin Oz

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Quote from: BoardGameCoin on June 24, 2012, 01:34:33 AM

No, I'm saying offering a fiat <-> bitcoin investment denominated in fiat. No GLBSE purchases at all. Simply buying and holding BTC on behalf of fiat shareholders. I'm sure this would be a huge target for the moolahs. Obviously you'd need to work on the security of the thing, and have your buy and sell strategy clearly in the prospectus, but this is a hugely viable bitcoin-business at the moment.

-bgc

The fiat is essentially backed by the bitcoins held at glbse ? Interesting. Because you are holding the fiat for a long time you could avoid a lot of fraud because shareholders wouldnt be withdrawing the bitcoins for a period of time.

BoardGameCoin

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No, I'm saying offering a fiat <-> bitcoin investment denominated in fiat. No GLBSE purchases at all. Simply buying and holding BTC on behalf of fiat shareholders. I'm sure this would be a huge target for the moolahs. Obviously you'd need to work on the security of the thing, and have your buy and sell strategy clearly in the prospectus, but this is a hugely viable bitcoin-business at the moment.

-bgc

Bitcoin Oz

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Quote from: BoardGameCoin on June 24, 2012, 01:15:59 AM

Quote from: Bitcoin Oz on June 24, 2012, 01:12:30 AM

Quote from: BoardGameCoin on June 24, 2012, 01:10:02 AM

Why limit it to GLBSE? Why not make a bitcoin index fund?

-bgc

Actually i was just thinking about that. Something like the S&P 500, the Nikkei 225, and the FTSE 100. perhaps the BIT50

Sorry, I edited my post, my proposal is more like a US Treasury index fund than a S&P or DJIA. With BTC, I view the fundamentals as a stronger proposition than the current crop of businesses. I believe there are some GLBSE securities that try to do things like an index fund though, so if the brokerage proposal works, that'd be available. All I'm saying is I bet you'd get a lot of customers just from the bare 'bitcoin' index fund.

-bgc

Yes I know of several "index funds" like MU and BBBB
Holding all the stocks in the same proportion they are listed on glbse you mean ?

I was thinking an index/ranking of stocks with greatest market capitalization (shares outstanding * price per share).

BoardGameCoin

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Quote from: Bitcoin Oz on June 24, 2012, 01:12:30 AM

Quote from: BoardGameCoin on June 24, 2012, 01:10:02 AM

Why limit it to GLBSE? Why not make a bitcoin index fund?

-bgc

Actually i was just thinking about that. Something like the S&P 500, the Nikkei 225, and the FTSE 100. perhaps the BIT50

Sorry, I edited my post, my proposal is more like a US Treasury index fund than a S&P or DJIA. With BTC, I view the fundamentals as a stronger proposition than the current crop of businesses. I believe there are some GLBSE securities that try to do things like an index fund though, so if the brokerage proposal works, that'd be available. All I'm saying is I bet you'd get a lot of customers just from the bare 'bitcoin' index fund.

-bgc

Bitcoin Oz

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Quote from: BoardGameCoin on June 24, 2012, 01:10:02 AM

Why limit it to GLBSE? Why not make a bitcoin index fund?

-bgc

Actually i was just thinking about that. Something like the S&P 500, the Nikkei 225, and the FTSE 100. perhaps the BIT50

BoardGameCoin

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Why limit it to GLBSE? Why not make a bitcoin index fund? By which I mean: convert fiat to bitcoin and back based on share purchase and just leave it as bitcoin. GLBSE introduces a whole heck of a lot of extra risks and lack of transparency. With a BTC fund, you could make it fully auditable via the blockchain.

-bgc

Bitcoin Oz

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Quote from: ColdHardMetal on June 24, 2012, 01:01:45 AM

Perhaps this connects to this:

https://bitcointalksearch.org/topic/m.985771

Its related. My thinking is that one site cant be all things to all people and theres a market niche for something more specialised.

ColdHardMetal

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Perhaps this connects to this:

https://bitcointalksearch.org/topic/m.985771

Bitcoin Oz

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I think it could have a lot of features glbse itself cant/wont implement. Including some professional charts. Its also not restricted to glbse as there are other stock exchanges.

Bitcoin Oz

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Quote from: Garr255 on June 23, 2012, 10:16:12 PM

Such a business would definitely improve liquidity. I think there should be equity sold, rather than bonds though.

A partnership deal ? Depends how many want to be founding partners I suppose.

Garr255

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What's a GPU?

Such a business would definitely improve liquidity. I think there should be equity sold, rather than bonds though.

Bitcoin Oz

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Since you can only buy shares on glbse using bitcoins I am thinking we need a share brokerage site that accepts fiat and mirrors the glbse in different currencies. The prices on glbse would be converted to fiat and the brokerage firm would handle the conversion to bitocins possibly through bitpay or something.

I propose a bond be issued and the proceeds used to create the site and employ brokers to work on commission.

What are the pros and cons of such a proposal ?

Topic: [Proposal] GLBSE share brokerage ( Index Fund ?) (Read 1226 times)