dividends

[galvin]

Has anyone done the math to figure out how much btc every 100K shares will produce?  I guess this is how we'll get our ROI.

[gmrpr7]

I did the math a while ago and got 2-3 satoshi per share (1 satoshi = .00000001). Since FAS seems to be getting 2 satoshis per share, I think this estimate is accurate on the conservative level. If we mine SHA-512 and Scrypt at the same time, I don't think 3-4 satoshi is unreasonable. These dividends seem to be getting distributed every 2-3 days on FAS, so I assume it will be similar with us (after miners are setup of course).

Edit: Did the math again and still getting around 2-3 satoshi per share every 3 days with BTC at $580:

And now on to the math. Yay, math!

65 BTC held in shares * $580 per BTC = ~$37700 invested capital / $160 per miner = ~235 without controllers
235 miners / 1 controller per 15 miners = 15 controllers needed for 225 miners (add one for last 5 or so) -> 16 controllers needed * $67 per controller = $1072
Invested capital after controllers = $37700 - $1072 = $36628 left for miners / $160 per miner = ~228 miners

Each ASIC miner has 5 chips that pull out (in Dual Mode per chip) 1.6GHs SHA and 60khz Scrypt or 8GHs SHA and 300KHs Scrypt per ASIC unit
8 GHs BTC * 228 = 1824 GHs SHA and 300 KHs Scrypt * 228 = 68400 KHs Scrypt
Power: 100W (Dual Mode) 25W (Scrypt) I'm gonna use 75W * 228 = 17100W for SHA calculations and 25W * 228 = 5700 for Scrypt calculations

Coinwarz:
We will be mining the second or third most profitable coin on Coinwarz (switching only once per day) and electricity is $0.09 per KWh. With these specs, and today's profitability outlook, I see about $400 per day for Scrypt and $120 per day for SHA or $520 (~.896 BTC @ $580) per day total (after electricity, of course).

.896 BTC per day / 75,000,000 shares = ~ 1 satoshi per day -> dividends given every 2-3 days so each dividend should be about 2-3 satoshi per share


Since BTC just went down $20 as I wrote this, it's anyone's guess what our actual dividend will be haha.

[galvin]

So returns are going to be peanuts unless you have millions of shares.  Maybe that will get better in time.  Its almost not even worth it.

[gmrpr7]

If you aren't satisfied with the dividends, you can always have the units sent to you and hash with them yourself. With 8GHs SHA and 300 KHs Scrypt you could make about $3 a day (per ASIC) if you pay $0.17 per KWh like I do. High electricity cost is the reason I would prefer dividends, but the flexibility is the benefit of this project. You can also sell your shares if there is a raise in price. I think there will be one when we get our first couple of dividends.

Dividends should go up if BTC goes up but that is something we can neither control nor predict.

Oh and dividends are not supposed to be high. Intel stockholders get $0.22 per $24 share every 3 months.

[galvin]

Guess im going to have to wait. I bought shares at 2. Just dont understand what good the shares are if they dont make you much money. Who would want to buy shares later on if they make you peanuts on dividends?

[gmrpr7]

There are ways to make much more by speculating on unlisted coins that might "come up." To do this right we would need a research team that basically reads every new altcoin announcement on bitcointalk and tracks them. If we could forecast the next Dogecoin, dividends and stock price would immediately go up. I'll talk to fastbit about the possibility of doing this after we setup the miners.

OK, now I am getting ahead of myself. Patience

[galvin]

I was looking at FAS dividends, they're paying out at 10 satoshi's. Thats really high. Shares would become really valuable if they paid good dividends. Which could be really sweet if btc ever hits 5000 or more.

Also you're basing your math on what they're buying now.  But like any business you expand over time.  So if they increase their mining power, then our dividends should go up. 

[grinder]

Yesterday I got 2 sat per share dividend payout from Fasbit - where did you find 10 sat?

Someone was calculating roi at btctalk, and it got to the return of 9-17% of investment if you bought at introduction price - don't know if it's accurate.

Regarding mining of most profitable coins - I have possible idea. Would you agree if pool mined speculative "might go up" coins for 1-2h everyday? All speculative coins go to "Speculative TGP fund", which sells spec coins few hours after they hit bigger exchange or similiar. We could vote which spec. coins to mine, and when to sell them (hen it hits ex, or when the value goes beyond expected/introduction price).

This could be additional/special dividend payout. Just consider, that if we mined Mint when it was first announced - we could have millions of it, and made a hell of a profit in a last few days.

[galvin]

cryptostocks.com/securities/87

I see one for 7. I thought I saw 10 in there earlier.
Thats for fasbit instant mining

[grinder]

7 sat dividend was a special one - from sale of C-Notes. Regular are 2 sat per share

[gmrpr7]

That sounds like a reasonable system, grinder. Hopefully we can implement something like that in the future.

An alternative would be to use all of my hash power on 24/7 speculative duties. Since they are basically my loaned miners, nobody can really get upset if we do this (especially if we get higher dividends because of it). Either way, the whole voting on speculative coins would really tie either system together.

I smell a cryptostock vote in the future.

[cryptodough]

Feb 24, 2014 3:00:51 GMT -6 grinder said:

Yesterday I got 2 sat per share dividend payout from Fasbit - where did you find 10 sat?

Someone was calculating roi at btctalk, and it got to the return of 9-17% of investment if you bought at introduction price - don't know if it's accurate.

Regarding mining of most profitable coins - I have possible idea. Would you agree if pool mined speculative "might go up" coins for 1-2h everyday? All speculative coins go to "Speculative TGP fund", which sells spec coins few hours after they hit bigger exchange or similiar. We could vote which spec. coins to mine, and when to sell them (hen it hits ex, or when the value goes beyond expected/introduction price).

This could be additional/special dividend payout. Just consider, that if we mined Mint when it was first announced - we could have millions of it, and made a hell of a profit in a last few days.

Yea I was thinking about this the other day also. We could really get some huge payouts if we mined the proper alts.

[fasbit]

I am not opposed to going for high returns, but imagine getting 50 emails from 50 investors who all want me to mine their favorite coin. Even assuming we could come up with a universally agreeable method to pick one coin, and we have enough hash power, it only makes sense to directly mine the wallet and not use a pool, so there are wallet sync and set up issues to deal with and there are currently over 400 alt coins that trade on an exchange somewhere. These are factors to consider because I am not willing to go change the miners more than 1 time per day. If we pick a coin it will need to be mined for 24 hours steady. If the profitability changes quickly, then it wasn't the right coin to mine. Coin hopping is a rough business to be in. But it is probably better suited for the individual at home, not a scrypt farm.

[cryptodough]

Feb 24, 2014 12:03:34 GMT -6 fasbit said:

I am not opposed to going for high returns, but imagine getting 50 emails from 50 investors who all want me to mine their favorite coin. Even assuming we could come up with a universally agreeable method to pick one coin, and we have enough hash power, it only makes sense to directly mine the wallet and not use a pool, so there are wallet sync and set up issues to deal with and there are currently over 400 alt coins that trade on an exchange somewhere. These are factors to consider because I am not willing to go change the miners more than 1 time per day. If we pick a coin it will need to be mined for 24 hours steady. If the profitability changes quickly, then it wasn't the right coin to mine. Coin hopping is a rough business to be in. But it is probably better suited for the individual at home, not a scrypt farm.

I'd agree with this. I'd say if you want to coin-hop the best way to do it, and really the ONLY way to make yourself happy doing it, would be to just go ahead and sell your shares for the hardware, then mine at home however you'd like.

However, I do feel there should be transparency when dealing with a farm. For Example:

• a "weekly profit report" that shows the # of coins mined
• where the coins were sold, and for how much
  
• public wallet addresses should be made available so that any investor could check the balance of a coin wallet at any time

I feel this would be a HUGE step in legitimizing the business. Hardly no one in the bitcoin business offers true transparency, it has been mostly empty promises up to this point (MtGox I'm looking at you). However, that's the main benefit if bitcoin. Any company who is the first in ANY area of the bitcoin industry to offer transparency on this level, will be way ahead of the competition.

Additionally, as an investor, I would be willing to help assist with any of the aforementioned items in order to make this venture as successful as possible.

If I ever start up any bitcoin-related business, this will be the #1 priority. To promote fairness, trust and transparency within the community, as that is why bitcoin is here in the first place. Growth will follow this business naturally, and the more of those types of businesses comprise the bitcoin ecosystem, the more successful bitcoin will be as a whole.

[gmrpr7]

I agree with the need for the most transparency possible.

In regards to coin hopping I agree it is not very good in our situation. However, what about if I donate my miners for speculative mining? They would only take up one controller so if we pick the wrong coin, it's not the end of the world (still plenty of hashing power left).

I do agree the wallet setup issues and people spamming about their favorite coin would be a problem. I'll see if I can think of any possible solutions.

I don't think this idea should die this quickly, but it is probably too early to be thinking about this.