U can have my brownies when you pry them from my cold, dead hands!

Quote from: starspirit on July 14, 2015, 12:39:47 am

MPAs are like derivatives on the underlying asset. They are not required to distribute a dividend like the underlying asset does. However, their valuation would need to reflect the value of any dividends received, otherwise the MPA is a provably inferior investment to owning the underlying asset outright (*). This may not matter as much for low dividend growth stocks, but is significant for higher dividend stocks.

Even on a dividend discount model, the price only ever reflects the valuation of future dividends. At the exact point a stock goes ex-dividend, its price falls (in theory by the value of the dividend). Apple stock holders do not lose value, because they receive the actual dividend. bitAPPLE holders would lose value, if they received no distribution, and the price was defined as the stock price. They can be compensated for this if the price is defined as an accumulation price (i.e. with dividends reinvested), rather than the actual stock price.
As an aside, I would like exactly this sort of flexibility to exist in Smartcoins 2.0, which I have discussed previously.

[**** footnote on why the MPA would be inferior and either price below par, or if forced to par by settlement rules, lack demand.]

(*) If the Apple MPA only ever reflected the price of Apple stock, and never distributed dividends, any user could get paid the dividend stream for free without any price risk. They would do this as follows.

(i) Deposit $250 worth of BTS as collateral to self-create a long and short on bitAPPLE, and sell the bitAPPLE for $125. On this leg, you are short the APPLE price.
(ii) Use the proceeds of your bitAPPLE sale to buy an Apple share for $125. On this leg, you are long the APPLE price, plus long the dividend stream.

In theory the market would be willing to accept a much lower price on bitAPPLE.

I argue that MPA apple is an inferior investment to actual apple stock.  I've made the argument that the stock price is priced w/ dividend annoucements.  MPA Apple also does not have to pay capital gains tax and income tax which can be ranging from 25% - 40% markdown from the sale price of the stock.  MPA Apple is therefore much more superior  even though it doesn't give out dividends.

You would still have to pay capital gains tax on anything you make within the bitshares system... You could try to avoid it, but I think the IRS would see it as capital gains.

Glad you figured it out Blazin!


Back to the price...good chance of a bottom here at .036 again.  Three dumps down to that level today and each time it bounces right back up.  This is the 50% retracement level of the move up, so its a common place to find a bottom or the retracement.  The june-july pullback has been much lower volume than the may rise, which indicates we will probably go up again.

Was sad to see our post-litecoin-pump rally come to an end with so much dumping.  But we shook off some more bears in the process. Gotta get all the shares into the hands of actual bitshares believers, so we can go up!

Until a release date becomes more clear for bitshares 2.0, we probably will just slosh around this 15mil market cap.  It would be kind of funny if banxshares ends up surpassing us in market cap.

If this is the case where the image is copywrited, then the cleanest course of action would be for mjb to create a new image for Ken to use that is not copywrited.  Or mjb should return the bts and Ken can restart the bounty for the header.

In last weeks mumble you said you would not let "perfect take the place of good enough" and that you realized you need to ship a product soon.  Has something changed?  Do you expect the test net to be ready this month?

The delegates I would like more information for what they are contributing:

-dev0.nikolai
-tradbts.gulu
-media.bitscape
-www.bts-hk
-dev-metaexhange.monsterer.  Are you guys making enough money in fees to lower your delegate pay?
-media.bitscape
-fund.bitsharesbreakout
-delegate.rgcrypto
-dev.sidhujag
-dev-trial.misc.nikolai
-delegate.verbaltech
-dev-pc.bitcube
-dacx.baozou
-provisional.bitscape

The other 100% have given recent updates or are core devs.  Not saying the above have not contributed, but I don't know what they have done lately.

I plan to remove my votes from these delegates if there is no response.

When you sell your bitGOLD you will get 1 ounce of gold in the value of bitshares.

So lets say you bought bitGOLD for $1200 while bts was valued at $.024, this costs 50,000 bitshares.

Now you sell your bitGOLD for $1140 today while bts is valued at $.006 today, you receive 190,000 bitshares.

You just made a great trade and nearly quadrupled the amount of bitshares you had.