Topic: [TAT.VIRTUALMINE] - page 12. (Read 39830 times)

This is the why you not only have to research into your investments, but also keep an eye on them.
The price/share can (and I think will) still go up since, as everyone has pointed out, it is currently outperforming most other dividend style investments. I am not the creator of this, TAT is, but if I was going to start this fund I would have placed the IPO price at below what I thought it was actually worth(which I think he did.) This just makes it even more likely that the market would take notice and sweep them up quickly.
If you are worried about the price going down, just make sure you keep an eye on the prices so it doesn't go under what you consider to be your limit for the dividends you will be receiving.
I'm not going to look up current prices÷nds and do the math, because I am tired but if you have received enough through dividends to make up for the price drop and you are still making decent profit then it is a good investment.
Don't forget that by keeping an eye on it, you can sell a couple of shares when the price is up and buy when they are a little lower to increase your overall holdings.
In my opinion, a lot of people using the term ROI are used to using the math for calculating hardware profitability. While there are a lot of similarities in the math, some things have to be looked at a little different.

So to my original statement (tl;dr) Do research & watch what your money is doing. Math is fun when it's profit =)

*Edit before anyone gets mad- I am not saying any specific post or person here is calculating ROI wrong, this is just the feeling I have gotten in multiple places around the forum on multiple subjects. My point is to be careful and make sure your math is logical and includes all the factors you can think to include (and try to include room for error.)

You lost me here. You're saying that as the dividends drop, the price probably will as well. That makes it an even worse investment, wouldn't it? Being that you can't even sell it for what you bought it for?

I expect the market price to drop faster than that, in anticipation of upcoming increases in mining difficulty.

true but i don't see it dropping .0001 every week anytime soon. I'm just happy making .25btc a day.

I meant drops by 0.0001, not drops to 0.0001. If VM drops, from 0.0070 to 0.0069, for example, then your 420 shares have lost a total of 0.0420 BTC, which exceeds the difference between the 0.035 BTC from AM and 0.0758 BTC from VM.

If the price of VM drops to .0001 then buying them at the price you'll have 188x the dividends of AM in a week. It wont drop to that low.

boyohi,

It is important to include the price of the shares in your computation. If the price of a share of VM drops by 0.0001 over a week while AM remains constant, then both will have the same return.

Even with difficulty calculated it will still outperform AM shares.

I feel that this is the biggest issue that people don't realize about VM. The dividend will get smaller, but the price of the bond will also fluctuate based on the expected dividend!

So many people here are calculating ROI as if the price could never drop below the IPO price...

Awesome. Thanks for the clear explanation! That was another fear: tons of micropayments as a result, :p.

Create an account with BTC-TC and transfer funds over. Go to the TAT.Virtualmine and buy it. The IPO is 0.007. The dividends are sent to your wallet on the exchange.

https://btct.co/security/TAT.VIRTUALMINE

To make these purchases, what do we do? Just transfer funds over to the site and then set up a buy order?

And how are dividends handled? Sent directly to us or to our stock exchange account?

You can always sell it at anytime. I think its easier to sell these than it is for physical miners. I do consider these to be undervalue for the dividends it pays out compare to everything else.

The virtualmine in BTC-TC needs love. I'd buy those shares but don't have to BTC till next week.

mmm, I may jump in on this then. It's much cheaper to get into than USB miners, and without having to do any extra work. Was just afraid of getting in on it and never seeing the full ROI, :p.

It will definitely not drop to 3% next month. In order for that to happen difficulty will have to increase to 72,000,000. I'd say you don't to worry about that for a good 7 months if it increase 20% each cycle.

Of course you can always mine using the USB miners and resell them on ebay at a later date.

Well, the issue is that with the quickly rising hash-rates, it's going to become less and less valuable. While it may be 10% this month, next month it could be 3%, then 0.1%, etc.

I'm mostly trying to figure out if I should jump in on this now or just keep the BTC (based on number crunching I don't see the dividends paying off based on the current stock prices). I could be wrong, of course.

The thing you're missing is, try to find anything else that gives you a better deal. If you try mining yourself you'll have to deal with preorders that may or may not come. You can buy AM USB or Blades which is cheaper than these shares but you'll have to keep it running for a while at your own expense. How about investing in AM shares? They won't pay nearly as much in div/cost for a long time from what it seems. The BTC investing market is the most profitable and, if you want, you can go on wall street and do stocks with a 7% return a year.

Right now, even with difficulty increase, we are getting over 10% a month. Find anything in the world that will give you over 10% a month and I'll be glad to follow you into it.

EDIT: I do realize that starting a business might be a good idea depending on the business. I get to sit on my ass and get 10% a month.

Keep in mind the difficulty change is defined in the code as every 2016 blocks, which means that in a time of rapidly rising difficulty, the next difficulty shift can happen quicker than 14 days, because the blocks are being solved faster than every 10 minutes.  For example, I believe the most recent difficulty jump of 28% happened in a time period a few hours shy of 12 days.

Hmm, based on the current dividend rate, it's a 230 or so day ROI (assuming no difficulty increases -- which we already know is false). I'm wondering why people are still buying into this.

Is there something I'm missing? If the dividends are already at 230 day ROI, and are going down every week or two... I don't see it breaking even for a couple years if it does at all.

3 BTC will buy 420 shares of VM and 1 share of ASICMINER. ASICMINER is giving about .035btc/week, and the VM would give you 420 * .00003223 * .8 (20% difficulty increase) * 7 days = 0.0758 BTC/week.