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91
Off Topic / I am selling Augur REP
« Last post by zack on March 03, 2016, 01:57:38 pm »
I was involved in augur's development, and will own some of the REP when it launches.
I want to sell it for bitcoin now.
We can use a 2 of 3 multisig like Hedgy as our escrow, so you don't have to trust me. I am willing to lock up some of my bitcoins too, to show you I am not wasting your time.

We could use the price off gatecoin: https://gatecoin.com/
92
Off Topic / Re: consensus method even cheaper than POW
« Last post by zack on March 03, 2016, 01:16:34 pm »
Oh, you think that bitcoin's reward schedule results in the largest market cap.

Could you explain why diluting the shares in exchange for investment at a higher valuation would lower the market cap?
Market cap = price of a share * number of shares.
If we increase the price of a share at the same time we increase the number of shares, it seems like the market cap would have to increase.
93
Off Topic / Re: consensus method even cheaper than POW
« Last post by psztorc on March 03, 2016, 06:27:06 am »
> How would you change bitcoin's reward schedule to allow for a faster growing market cap?

I wouldn't change it at all. Bitcoin is the e-gold, alternative to managed fiat currencies.

That being said, I've previously argued that this particular version of a fixed reward schedule might have some problems, and we should soft fork it to a different reward schedule.
94
Off Topic / Re: consensus method even cheaper than POW
« Last post by zack on March 02, 2016, 07:30:14 pm »
Yes, that is what I think too.

How would you change bitcoin's reward schedule to allow for a faster growing market cap?
(Where market cap is means how many meals you could buy if you could sell all the coins at the current price)
95
Off Topic / Re: consensus method even cheaper than POW
« Last post by psztorc on March 02, 2016, 05:47:32 pm »
>Can you answer the questions?

Sure, but I don't think they will help, as you are very confused about much simpler issues.


> If a fixed supply of shares is best, why are startups willing to dilute shares when they get investors?|

Question contains a false premise. (A fixed supply of shares is not always best.)


> Can you give any reasoning for why it is bad to change the rate of production relative to investment for new coins, but good to change the rate of production to keep it at a fixed ratio to the current price of a coin?

No.
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Off Topic / Re: consensus method even cheaper than POW
« Last post by zack on March 02, 2016, 06:59:22 am »
Yes of course, I do not doubt this.


Can you answer the questions?:

If a fixed supply of shares is best, why are startups willing to dilute shares when they get investors?

for gold, doubling mining investment rate doubles the rate of gold production. Bitcoin is unique in that doubling the rate of investment doesn't change the rate of production at all. Can you give any reasoning for why it is bad to change the rate of production relative to investment for new coins, but good to change the rate of production to keep it at a fixed ratio to the current price of a coin?
97
Off Topic / Re: consensus method even cheaper than POW
« Last post by psztorc on March 02, 2016, 12:36:49 am »
At any given time, there will be 12 inches in every foot.

At any given time, the market cap will be equal to the 'price per share' multiplied by 'the total number of shares outstanding'.

It does not matter if a tree grows from being 40 inches to 50 inches, or the tree is measured in centimeters instead of inches, there will still be 12 inches in each foot.
It does not matter if the price per share rises, or if there is share dilution, the relationship between price and marketcap will be the same.
98
Off Topic / Re: consensus method even cheaper than POW
« Last post by zack on March 01, 2016, 07:12:07 pm »
Sorry if I typed something that seemed contrary to a rudimentary financial concept. I have 2 questions:

If a fixed supply of shares is best, why are startups willing to dilute shares when they get investors?

for gold, doubling mining investment rate doubles the rate of gold production. Bitcoin is unique in that doubling the rate of investment doesn't change the rate of production at all. Can you give any reasoning for why it is bad to change the rate of production relative to investment for new coins, but good to change the rate of production to keep it at a fixed ratio to the current price of a coin?
99
Off Topic / Re: consensus method even cheaper than POW
« Last post by psztorc on March 01, 2016, 05:38:11 pm »
If you think that share dilution changes the relationship between market cap and price (a fixed MC = P * SO), then you are too ignorant of rudimentary financial concepts to post anything of value to anyone, sorry.

This is not even finance, it is 4th grade multiplication.
100
Off Topic / Re: consensus method even cheaper than POW
« Last post by zack on February 28, 2016, 06:10:56 pm »
http://paulgraham.com/equity.html
Paul Graham seems to think that diluting the shares can be worth it when the investor increases your valuation enough.
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