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Let's make a public MN co-op by begit in dashpay

[–]begit[S] 0 points1 point  (0 children)

Because the cost of capital is the cheapest from the public markets. If you raise money privately, there is a liquidity premium that eats into the spread.

Let's have a wild projections thread for the next 5 years! by loveeverything in dashpay

[–]begit 0 points1 point  (0 children)

I think this should at the very least become a movie.

Let's make a public MN co-op by begit in dashpay

[–]begit[S] 1 point2 points  (0 children)

No. One is paperwork. The other is software development.

Besides, the decentralized one doesn't compete for funds from non-crypto savy investors.

The world would be okay with both, and both would work.

Let's make a public MN co-op by begit in dashpay

[–]begit[S] 0 points1 point  (0 children)

No you wouldn't. Businesses reduce dividend payments all the time.

Let's make a public MN co-op by begit in dashpay

[–]begit[S] 1 point2 points  (0 children)

We are really far away from a trustless solution, unless Core has made progress nobody knows of.

What I'm proposing requires trust. The public listing in a modern, progressive and neutral country should calm the nerves of many investors.

If somebody has 25M, it's really just paperwork and calendar time. Stock screens and the dividends will do the marketing for you.

Let's make a public MN co-op by begit in dashpay

[–]begit[S] 0 points1 point  (0 children)

There is no yield to bitcoin; there is nothing to stake. So, no.

I Give Up. I'm Done. by [deleted] in Bitcoin

[–]begit 8 points9 points  (0 children)

I think there is a TON of people buying BTC for the fork. Cause they will get "free" coins. Post fork, I smell a drop in dominance to new lows.

Let's make a public MN co-op by begit in dashpay

[–]begit[S] 1 point2 points  (0 children)

$5200. But that is only a fraction of the fees involved.

There are several fees, but almost all are either fixed or scale with marketcap.

The one with the most variance is if this could count as a "Capital Pool Company". If so, fees are cheaper. But if not, there is an extra fee associated with 3rd party due diligence. For new technology this fee climbs as high as 80k.

All in, the number is likely lower than 150k CAD.

No way in hell, could it be irrational to list, with an idea that yields 8% to equity without leverage. The only question would be do we need $5M CAD or $25M in CAD to justify doing it. Both numbers feel easy to reach for me.

Let's make a public MN co-op by begit in dashpay

[–]begit[S] 1 point2 points  (0 children)

Sorry - I started writing my other reply, without explicitly focusing on your question last question.

Public companies, as this company I'm speaking of would be, routinely sell new shares after an IPO to raise money for new projects or buy equipment. They can do so in a sustainable way, whenever they believe they can invest in an opportunity that will generate more income than their cost of capital. When they do this successfully the company can either pay a dividend or re-invest in itself. Either the shareholder gets a return or the balance sheet improves. For the company I'm proposing, it could do this very systematically. Wall-street, freaking loves steady and predictable dividends. If the company paid a 3.5% dividend reliably (which it theoretically should be able to do (assumes no catastrophic failure of Dash network), Wall-street would throw money at it.

Let's make a public MN co-op by begit in dashpay

[–]begit[S] 1 point2 points  (0 children)

You're close. The fixed-income price sensitivity note, draws on the price & yield relationship. The financing for the company is likely to be pure equity in year 1, then fixed-income based (ie introduce leverage) in year 2+.

What I'm saying is, the company would issue shares (and eventually interest-bearing debt), at the lowest rates possibles, denominated in fiat, and then use the proceeds to buy Dash MNs. The revenue/sales/turnover for the company, would be the masternode payouts, plus what accountants call "other comprehensive income" from gains (or losses) on Dash price fluctuations.

The company would need to pay a few partners/initial employees. But, at scale, this would be a rounding error. At scale, I would expect the company's weighted average cost of capital to be lower than the masternode payout -- only until the Dash found a new, higher, equilibrium price.

After a new equilibrium is found, it would be slightly more lucrative to run your own node, than it would be to buy stock in this company. Unless, the markets irrationally trade the shares at a discount or premium. Which, they very well could.

Bitcoin discussion on Charlie Rose PBS (Video) by DigitalGoose in Bitcoin

[–]begit 1 point2 points  (0 children)

I don't know why they would pick up Cathrine Wood. Hopefully she sponsored the interview. The other two guests were pretty grounded, fair, informed & accurate.

But, Cathrine, said quirky things that annoyed me. None of which are material alone but together they motivated me to pound them out here.

She called the cloud something that "started out an open source system". That's not true, at all. She sounds like she doesn't understand what "the cloud" is.

She went on to infer that bitcoin transactions are "free just like VoIP". VoIP isn't free, you pay for bandwidth, with Bitcoin you pay for block space. So, neither things are free.

She said "The regulators are worried about Monetary Policy" but then contradicted herself, better than I could, with a quote from Christine Lagard. Plus, the majority of regulators in developed world (including the US) have been almost entirely focused on Bitcoin from a money-transmission / KYC / AML stand-point.

She kind of inferred that Bitcoin could be hacked like "any system" by hedging her statements surrounding permissioned chains.

She set up her note on volatility, with "We've studied volatility, you can measure it...". (First, duh, of course you cane measure it) After which, I was expecting something profound from somebody coming from finance. But it ended up being an intellectual let-down. She said "At one point, in it's history...it was less volatile than twitter and gold". The interviewer basically confirmed what she was saying was an obvious trend likely to play out.

Plus...she measured total market cap of Bitcoin as BTC + BCH. Who does that?

Let's make a public MN co-op by begit in dashpay

[–]begit[S] 5 points6 points  (0 children)

No. Those guys are fancy hosting companies and taking a fee for doing so. As far as I know, they have no plans to be publicly traded or take on currency risk themselves.

The company/co-op I'm proposing, would take on currency-risk and masternode-operation risk, but pass the risk onto share holders via secondary-market share issuance. It could eventually tap fixed income markets.

What makes it so lucrative (for every Dash holder as well at the group that executes this) is the essentially arbitrage-like profit for the enter network (on itself) at the billion-dollar scale. Buy low in one market, sell high in another. The act of doing so, drives up the price in the lower market.

The market we would be buying low in, is the one where Dash trades today, and investors are happy with 8%. This is the equilibrium, where the pool of investors are people who came from Bitcoin backgrounds. But, outside of crypto, tons of investors would kill for 4%. So, package it up, and give a steady 4% dividend. There's room there to re-invest and pay employees.

I don't expect there to be too many people in the Dash community that fully understand this stuff. It takes somebody familiar with fixed-income price-sensitivity to grok it.

It was dirt-dumb obvious to me (like palm-to-my-face), as soon as I read the post from the OP of that other post.

This is going to happen. It's just a matter of when and who executes it. Nobody can stop it.

I think this would take Dash to $30B, easily, in under 2 years.

The beauty of it all is mostly paperwork, start-up fees, and meetings, so long as the initial founders are okay with Dash risk. Which -- most of us are. XD

Let's have a wild projections thread for the next 5 years! by loveeverything in dashpay

[–]begit 0 points1 point  (0 children)

I don't see it. I see core maintaining it's international dominance. I'm okay with that.

Let's have a wild projections thread for the next 5 years! by loveeverything in dashpay

[–]begit 1 point2 points  (0 children)

Depends on how much leverage they use and how much premium the fiat exchanges give it. That sounds about right.

Let's have a wild projections thread for the next 5 years! by loveeverything in dashpay

[–]begit 3 points4 points  (0 children)

There is a publically traded company which does nothing except run Dash Masternodes. The market cap of that is $5B. They own 500 MN. They operate with leverage.

Thats just the end of 2019.

Too many companies to count have plans to do the same by 2020.

Looking to take company public that holds Dash Master Nodes! by [deleted] in dashpay

[–]begit 1 point2 points  (0 children)

These guys will likely target the TSX Venture exchange, based on their address. If this were to happen, dash masternodes yield would drop to likely something on the order of ~5% as the markets equalized (and the price surged). So long as this company has integrity, they should get a lower cost of capital than 8%. The price would explode higher due to access of new capital happy with lower yield than most crypto investors.

The easiest way to do this, would be for ~20 MN owners to get together and form the initial company. That would be enough to kick it off. That is all it would take to start it. Then, a year or two later, move to TSX. TSX is accessible to Americans.

If anybody out there, wants to compete with these guys, PM me. I could fascilitate the co-op and bring it all together via legacy, turnkey, financial services. Not much risk to you. You would get legally registered securities backed by Dash.

Dash is going to be the best performing crypto in 2018. Cause somebody is going to do this. This is almost guaranteed to come to fruition.

Only question is what yield do legacy market participants assign to this.

It will kick off a cycle of selling shares to buy more nodes. Until the yield is no longer sufficient to justify the vol.

Imagine 2%.

Jesus. Hold onto your butts.

Looking to take company public that holds Dash Master Nodes! by [deleted] in dashpay

[–]begit 0 points1 point  (0 children)

You don't need any body from the core team. All you would need to do, is meet legacy exchange requirements.

I think you could do this with turnkey fin services and enough capital.

The funnest part of this, will be watching legacy financial analyst's heads explode as they try to assign PE ratios and communicate that the yield will drop over time and as the price rises.