What is better than 7% per week? Why 293%+ per week of course ...

n8rwJeTt8TrrLKPa55eU

hero member

Activity: 588

Merit: 500

Quote from: hashman on August 22, 2012, 11:17:15 AM

Maybe Satoshi will come back and print out some extra coins cause these toxic debt bubbles are too big to fail?

Good line...and highlights the silver lining to the series of scams and scandals in the Bitcoin universe. Failures have not been rewarded. Sky has not fallen. And price has stayed high. Which lends evidence to the idea that economies become more resilient and self-correcting when people are fully exposed to the consequences of their actions.

iCEBREAKER

legendary

Activity: 2156

Merit: 1072

Crypto is the separation of Power and State.

Quote from: hashman on August 22, 2012, 11:17:15 AM

Maybe Satoshi will come back and print out some extra coins cause these toxic debt bubbles are too big to fail?

+5 Funny, +5 Insightful

I've been considering the possibility that Satoshi was/is feeding pirate, and their goal has been to accelerate the movement of fiat money into BTC.

sunnankar

legendary

Activity: 1031

Merit: 1000

Quote from: ArticMine on August 22, 2012, 10:12:05 PM

I am not invested at all with Pirate, but I actually expect he will be paying his lenders in full; however even with the 100% expectation of Pirate paying in full I can see why these bonds would trade at a discount.

There are opinions people have and then there are opinions people have that they will wager their money on.

Which opinions do you think more accurately represent the people's opinion on what they think will actually happen in contrast to what people want to happen?

It appears that your opinion that Pirate will pay in full on time as agreed, or even partially, is not strong enough that you will actually risk your bitcoins to profit from the opinion.

The market thinks with a 60% probability that Pirate will fail to pay either principal or interest. It is pretty simple: If you think Pirate will pay up then buy the bonds and make a profit.

That is what markets are for. Those whose opinions are correct profit and accumulate capital while those whose opinions are miscalculations lose capital.

ArticMine

legendary

Activity: 2282

Merit: 1050

Monero Core Team

I am not invested at all with Pirate, but I actually expect he will be paying his lenders in full; however even with the 100% expectation of Pirate paying in full I can see why these bonds would trade at a discount.

bitcoinBull

legendary

Activity: 826

Merit: 1001

rippleFanatic

Quote from: ArticMine on August 22, 2012, 09:36:59 PM

There is also the danger that pirate will pay but one cannot move move the Bitcoins fast enough in a falling market in order to sell them. There is a very real danger here of a sharp drop in the BTC / USD price should pirate pay up.

Lol, don't worry about getting them back. more comforting to worry about what the price might be after you get them back. yea, think about the second scenario instead.

ArticMine

legendary

Activity: 2282

Merit: 1050

Monero Core Team

There is also the danger that pirate will pay but one cannot move move the Bitcoins fast enough in a falling market in order to sell them. There is a very real danger here of a sharp drop in the BTC / USD price should pirate pay up.

bitcoinBull

legendary

Activity: 826

Merit: 1001

rippleFanatic

Quote from: GernMiester on August 22, 2012, 09:07:54 PM

Call the cops and tell them your BTC was stolen. Tell us what they say besides WE CANT DO ANYTHING.

They say the same if it was cash. true, BTC is not EFT that visa can claw back. its a double-edged sword.

GernMiester

sr. member

Activity: 285

Merit: 250

Absconding with BTC and nothing can be done.. What a great currency? Steal as much as you can and nothing happens. Turn it into real cash at an exchange and laugh all the way to the bank. The funniest part is folks keep banking coins in places and they keep getting hacked. Uhmm yeah sure hacked.

Here is how it goes.. Guy makes lets say 75k a year. Guy creates BTC site. People like it and leave BTC there. Guy wakes up one day and sees a years salary or more sitting on his site in BTC. BTC is "hacked" AKA transfered to his wallet. Guy claims hackers. People bitch and complain. Guy cashes out BTC that was 'hacked'. People do it again at another site and are suprised, rinse and repeat.

Call the cops and tell them your BTC was stolen. Tell us what they say besides WE CANT DO ANYTHING.

bitcoinBull

legendary

Activity: 826

Merit: 1001

rippleFanatic

Quote from: Akka on August 22, 2012, 10:59:34 AM

Quote from: unclescrooge on August 22, 2012, 10:51:50 AM

Quote from: DeathAndTaxes on August 22, 2012, 10:47:48 AM

If there is such high confidence that Pirate will repay everyone in full

Is there?

They are still worth nearly 40% of their intended value. So the average user calculates with a probability of 40% that pirate will pay. I would say that is a high confidence.

If it wasn't for MNW's counter-offer, they would be worth much less. Pirate bonds are more like MNW-hedges actually.

People wonder about MNW's motivations. I think part of it is to soften the blow of pirate defaulting, for community morale and for a PR spin.

Quote from: hashman on August 22, 2012, 11:17:15 AM

Good point.. if you believe either of those "assets" will pay you back for your "investment".

Maybe Satoshi will come back and print out some extra coins cause these toxic debt bubbles are too big to fail?

lol

hashman

legendary

Activity: 1264

Merit: 1008

Quote from: conspirosphere.tk on August 22, 2012, 10:57:54 AM

Quote from: DeathAndTaxes on August 22, 2012, 10:47:48 AM

The market is saying there is less than a 38% chance of repayment in full. The actual number is probably lower because

... and even because now you can buy 1 BTC of Pirate debt for about 40 bitcents and hedging betting 1:1 against Pirate here:
https://bitcointalk.org/index.php?topic=101751.0;topicseen
so to profit either way.

Good point.. if you believe either of those "assets" will pay you back for your "investment".

Maybe Satoshi will come back and print out some extra coins cause these toxic debt bubbles are too big to fail?

Akka

legendary

Activity: 1232

Merit: 1001

Quote from: unclescrooge on August 22, 2012, 10:51:50 AM

Quote from: DeathAndTaxes on August 22, 2012, 10:47:48 AM

If there is such high confidence that Pirate will repay everyone in full

Is there?

They are still worth nearly 40% of their intended value. So the average user calculates with a probability of 40% that pirate will pay. I would say that is a high confidence.

conspirosphere.tk

legendary

Activity: 2352

Merit: 1064

Bitcoin is antisemitic

Quote from: DeathAndTaxes on August 22, 2012, 10:47:48 AM

The market is saying there is less than a 38% chance of repayment in full. The actual number is probably lower because

... and even because now you can buy 1 BTC of Pirate debt for about 40 bitcents and hedging betting 1:1 against Pirate here:
https://bitcointalk.org/index.php?topic=101751.0;topicseen
so to profit either way.

unclescrooge

hero member

Activity: 868

Merit: 1000

Quote from: DeathAndTaxes on August 22, 2012, 10:47:48 AM

If there is such high confidence that Pirate will repay everyone in full

Is there?

DeathAndTaxes

donator

Activity: 1218

Merit: 1079

Gerald Davis

If there is such high confidence that Pirate will repay everyone in full why are the PPT bonds trading at a huge discount to face value?

Bond Bid Ask
https://glbse.com/asset/view/BIB.PIRATE       0.342   0.449
https://glbse.com/asset/view/FOO.PPPPT       0.370   0.470
https://glbse.com/asset/view/TYGRR.BOND-P 0.457   0.615

The market is saying there is less than a 38% chance of repayment in full. The actual number is probably lower because the market is discounting the possibility of repayment + interest and including the possibility of repayment less than full.

Topic: What is better than 7% per week? Why 293%+ per week of course ... (Read 1743 times)