Are SatoshiDice and MPEx under SEC - Bitcoin Casino
Are SatoshiDice and MPEx under SEC - Bitcoin Casino
Erik Voorhees. All about cryptocurrency - BitcoinWiki
History of Bitcoin Stock Exchanges
r/Bitcoin - Are there any private stock exchanges that
The Implications of Crypto Assets Part 1: A History of
ICO's are the new IPO's. Making Ethereum the new GBLSE
First, I may need to provide some background, as many of you may not have been around in 2012 and 2013, so you may not remember GLBSE, BTC.TC, havelock, bitfunder and a few other "bitcoin stock exchanges". On those exchanges, companies could list securities like company shares and bonds, which where traded for bitcoin. Initially, mining bonds where the most popular security, allowing people to invest in bitcoin mining without having to own and operate any hardware, while allowing miners to raise capital and sell off the risk of future difficulty increases. Revenue from mining was then paid to bond holders as "dividends". In theory, a sound concept and the precursor to cloud mining. In practice however, these bonds quickly became a mania. They where trading at prices that made no economic sense at all, anyone with a calculator could easily see it was impossible they would yield a positive ROI. Miners and scammers quickly caught on to that, and sold more bonds then they had hardware for. But they kept rising in price, and people kept buying them, expecting to sell them later with profit. Soon after, all kinds of companies launched IPO's on these exchanges. Some where legit, many dubious, most where pretty obvious scams. It didnt matter, IPO's where as much a hype as ICO's today, and virtually never failed to sell out in record times, raising millions of dollars. Almost nothing was scrutinized, anyone scammer with a tiny amount of photoshop knowledge or anyone promising to achieve some ridiculous ROI had no problem raising millions. After the companies, came the investment funds. Someone raised bitcoins through an IPO, and used that money to trade in other securities listed on that same exchange. Then they launched a second IPO for another fund, and used fund A to buy shares in fund B, and fund B to buy shares in fund A. Prices went through the roof. You couldn't make up stuff like that, it was hilarious. Almost nothing that was traded on those exchanges, had any real value. A few notable exceptions include Asicminer, which raised money to develop an asic, actually managed to get it produced as one of the first ever bitcoin mining asics, sold in large quantities and made a huge profit, paying back investors through dividens many times the IPO value. It was the largest success story by far, but even that ended with an exit scam when the anonymous founder ran off eventually. Around 2013, the SEC intervened, closed a few of the largest exchanges, charged and fined some of the operators and issuers. Other exchanges collapsed or vanished. Tens of thousands of BTC where lost. Im not aware of any company that was launched on any of those exchanges that still operates, except for the gambling site satoshidice (which was among the ones fined by the SEC). What caused this to happen? The enormous rise in value of bitcoin created a group of early-investor millionaires, who believed in crypto currency, who where accustomed to double or triple digit gains in a very short time and who had money to burn. Many of them got rich "by accident", not because they did a lot of due diligence or understood the risk/rewards or even the technology. This gullibility was clearly seen with Trendon Shavers aka Pirateat40, who at that time operated a gigantic, half million bitcoin ponzi scheme by promising 7% weekly returns. These people where very likely to invest large sums of money in risky crypto related startups, expecting a repeat of the success of their early bitcoin investment. This created a self fulfilling prophecy where IPO's always succeeded, prices always went up, creating gigantic bubbles. Fast forward a few years. Besides bitcoin millionairs, we now have ethereum and a few other altcoin millionaires. Instead of IPO's, we now have ICO's. Instead of GLBSE, we have ethereum as the enabling platform. Instead of tradeable funds, we will soon have things like iconomi. Instead of bubbles created by funds investing in each other, we will have blockchains that are denominated in each other. And instead of thinking security regulation can be avoided by denominating an investment in bitcoin, we have people thinking regulation can be circumvented by calling something a token. Am I the only one having a terrible deja vue?
The beginning of the great transition to an Ancap world
We have already entered the transition - it began with the creation of the internet. Going by the definitions of a state that Julian Assange has laid out here: Control of force, control of communications and control of violence. Free market, open and freedom oriented solutions for all of these are emerging into the world today:
Defence Distributed has provided a open source and distributed mechanism for defence, in the intent to take away the monopoly on force
Tor has created a way for people to communicate anonymously. Also PGP and a bunch of other systems are emerging for communication that is violence resistant - meaning that violence cannot penetrate it.
Bitcoin - complete and utter financial freedom. Using Bitcoin, there is nothing any government or anyone at all can do to stop a transaction from happening or confiscate a person's funds. Cryptographic Assets (not only BTC currency but BTC related assets, stocks, etc) are going to completely change the world and allow for vastly more scaled up levels of agorism.
Combine these things together and what happens? Let's look at some business examples...
Silk road, a company operating over a TOR url and accepting Bitcoin as payment in an industry that has been highly criminalised by governments - drugs. This company has made the acquisition of drugs vastly safer and the quality much higher
Asicminer is a company that IPO'd on a Bitcoin stock exchange for a USD value of $500,000 and 8 months later, their stock was traded for $170 M. They pay weekly dividends and have made tons of revenue. With fiat currencies? Totally impossible. With Bitcoin? Completely frictionless economy...
Satoshidice has generated around $30M in revenues in it's 2 years of operations and after IPOing on a Bitcoin stock exchange, was acquired for $12M in Bitcoin. Also operating in an area that the US government has criminalised - online gambling.
Getting back to the OP's question. You ask "how do we get there?" The answer is simple - by proving to the world that using non-violent methods to interact creates that opportunity for frictionless, open, transparent, censorship-resistant, EXTREMELY PROFITABLE and economically uplifting effects. Once they see that, they will switch - in the same methods that consumers switch to better, cheaper, faster and easier products at the grocery store. When the choice is made available, the consumers will choose.
Want to invest in bitcoin but willing to accept more risk for more return? Maybe investing would be right for you!
As we all know, companies such as AsicMiner are currently kicking butt with their asics by releasing the eruptor blades and Erupter USB sticks for mining. This combined with their 28% or so of total hashing power for the entire bitcoin network is resulting in fantastic growth over the past few months, and their dividends are doing quite well. If you are interested in shares of AsicMiner , check out either Direct Shares or Pass Through shares, which is just one share of AsicMiner. You can find them in auctions on bitcointalk as well as sites such as BTCT.TO
There are other shares too, such as AMC which just recieved a few Avalons they purchased a while ago. Keep in mind that the owners relations with others on the forum is quite poor and very unprofessional, so I would still consider it rather risky.
There are also companies which are not based on bitcoin but experimenting with it as a source of capital, such as KenilWorth on bitfunder, who are a mining company which finds raw material deposits and then sells them to another company (I think). The people with that company are VERY responsive on bitcointalk and seem to be very professional.
You can even if you wish bet on funds which are reliant upon BFL's shipping, such as HaveLock's Investments Mining Fund. The owner of that fund is also rather response on bitcointalk and is a very down to earth person from what I have seen. For example, they just purchased a single Jupiter rig from KnCMiner in an effort to diversify so if BFL fails they will not be destroyed.
They are also other funds out there which are designed to represent an amount of Mhash/s per each share, for example RedStarMining which aims to have 180 Ghash/s eventually, with each share containing 2.818 Mhash/s.
Also, a very cool thing about these funds is that they are very present on bitcointalk in the securities section, so you can see up to date discussion about each fund. For example, for red star mining, here is their thread: https://bitcointalk.org/index.php?topic=63257.0 You can even get a fund in an exchange, such as Crypto-Trade! Though, they seem to be having some major issues with their site for a while now, which is unfortuntate.
There are tons of such securities available for lots of different styles people could choose, and because of bitcoin buying these shares is a very painless process. But do keep in mind that this is riskier than just holding bitcoin, and there are a good bit of scams prevalent in such securities, but if you keep an eye out and read their associated threads on bitcointalk you will be for the most part safe. Also, investing in companies like AsicMiner increases the network hash rate, making it even harder for a single entity to barge in and get more than 50% of the network hash rate, resulting in an even more secure network! These sometimes even hare shares which cost less than five dollars, so to get started you don't need much BTC at all. And here is the link to bitcointalk for anyone who wants to do more research and look at any other funds which might be of interest. Don't forget that there are some funds which are not exchanged on these sites, for example group buys where each buyer holds a certain percentage of proceeds from a very expensive miner they pool together to buy. As earlier though, be careful.
There is also a really good subreddit for discussing these securities as well as others on /BitcoinStocks ! Edit: Added in bitcointalk threads for each security I listed. Edit: It seems that there are nearly half as many downvotes as there are upvotes. Can anyone clarify?
Hi guys, I am 21 years old, been following bitcoin since it was around $20 in the beginning of 2012, but don't have any saved atm due to a gambling habit that I broke a month ago. I was never a gambler, thought it was silly, but then found out I was when I won 10 bitcoins on satoshidice from 1, which was the biggest mistake ever because I couldn't stop. I have had over 100 bitcoins at one point.. I'm over it though, I digress. Now I only have I have around 2-3 bitcoins atm lol. I bought them at around $300-400 for those last year. Haven't made any trades at all, don't even use exchange sites (Besides mtgox/bitinstant when it was around)... just going with the rollar coaster and hoping it gets somewhere good :) That's another story haha. My main question is how to convince my Dad to invest a decent sum in bitcoin? He is very intelligent and trades stocks pretty well as a part-time job, however he has no idea about bitcoin until it started getting popular on the news and such. He still doesn't really trust it since it's so volatile, but I think now is a good time to buy. I first asked him to invest when it was around $100 during the later part of 2012, and then asked him to invest when it was $200 in 2013... all failed attempts haha. How can I convince my Dad to set aside some money in a bitcoin investment? I know it's a gamble in it's own, however I do think he will profit which I want of course... I told him when it was at $100, $200... he would have profited. Now hopefully this will be third times the charm and he'll invest a decent amount in it and I have a lot of confidence it'll pay off. Please let me know your thoughts, thanks :) made a coinbase account for him and trying to teach him more about it.
SatoshiDice is now one of the largest businesses in the Bitcoin economy, beaten out by the mining company ASICMiner, worth roughly $150 million, and perhaps Bitcoin merchant and exchange juggernauts such as BitPay, BitInstant and Coinbase, all of which have received millions of dollars in investment. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange On March 3, they sent a letter to Mircea Popescu asking about the sale SatoshiDice, an online Bitcoin gambling business, on MPEx, the Bitcoin-based online exchange run by Popescu. Global Bitcoin Stock Exchange. The Global Bitcoin Stock Exchange, or GLBSE, was the first major player in the crypto equity space. Access to the exchange was originally restricted to command line prompts, but it eventually grew into a full web interface. Although many, some would say most, of the assets issued through this service were complete History of Bitcoin Stock Exchanges. Centralised Bitcoin stock exchanges show what will be possible with decentralised crypto assets. To attract investors on a Bitcoin stock exchange, all a person has to do is write up a business plan and explain how they are going to make money for their shareholders.
GBTC Stock: Is This Bitcoin Stock Market Play A Buy Amid for Dummies
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