First let me say I am not questioning the coin, which I think is very interesting and I do plan to invest. However, there is some questionable mathematics going on ...
I tried to write this last night, but bitcointalk was down and in the end I went to bed ...
So some math to Bitcoinblues:
Which is the bigger number? 28.9 or 37.6?
My friend, please read carefully our first post.... and join the IPO
Which is the bigger number? 28.9 or 37.6?
My friend, please read carefully our first post.... and join the IPO
Though you need to remember they are percentages so if it were ... for example ... 28.9 % of 100 or 37.6% of 5 ... which is larger?
No i think not. You talk about amounts but we talk about percentages.
Quite - and percentages are percentages OF something, so in order to compare 28.9% and 37.6% (which is what was asked) you need to know what they are percentages of?
In this case not only are they starting from different values, they are also using different units - 28.9% of the price of GH/s and 37.6% of the quantity of GH/s; you cannot simply say 37.6 is bigger than 28.9 and leave it at that.
So we come to:
I don't dispute that; but merely question the maths.
Really? So if value of gold drops by 20%, but in the end, you have 30% more of it, its a loss because now you need more gold for the same value? Special kind of logic
(gold is just an example because most people understand things better if they talk about something they know.)
This is actually a slightly different question - as you need to know HOW you got the 30% more of it and allow for that. It won't have appeared by magic, most likely the price fell and you thought "ah, I'll buy some more."
So let's work an example:
1. For simplicity assume gold costs $100/ounce and you buy one ounce.
Position:
Spent: $100
Hold: 1 ounce
Value: $100
Net position (value-spent): $0
2. Gold Falls by 20% (now $80/ounce)
Position:
Spent: $100
Hold: 1 ounce
Value: $80
Net position (value-spent): -$20
3. Buy 30% (0.3 oz) more gold at $80/ounce, cost $24
Position:
Spent: $100+$24 = $124
Hold: 1.0 + 0.3 = 1.3 ounce
Value: $104 (1.3 x 80)
Net position (value-spent): -$20
So yes, you have more gold but you are still DOWN $20 (in cash value) because your initial investment has lost $20. You will only get ahead if the value goes up again.
Clear?
