BSILVER - by crowetic - silver backed BURST asset!
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I also like this idea! Pretty cool.
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I hate to poop on other people ideas but as someone who deals in precious metals let me show you some of the holes.
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I think an asset back by a tangible asset (precious metals) is absolutely a fantastic idea, let me start there. This capital investment is one of the largest I've ever seen attempted by a crypto coin.
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Physical backing requires consistency. I became greatly concerned when you shared what the physical makeup of the asset would consist of. This can be corrected (and IMHO should be). Assets should all be listed as 1troy Oz .999 silver preferably sourced from the same location. Last week I purchased personally American Eagles @ $5USD over spot. why did I pick these? Here's why 1) Minted by the US Government so you know what's in it. You could use anything pretty much listed on apmex.com though. I did pay more because they were Eagles but eagles have the silver value and the collector value. For the purposes of this asset I would consider something like. http://www.apmex.com/product/27024/1-oz-silver-round-apmex
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If 1000 assets will equal 1oz there needs to be some strong supporting evidence from a financial perspective. Here is how I would expect the calculations to happen closely, I'll use $USD for my example but any currency could be used.
Today's market (all numbers have been rounded for simplicity)
1oz .999 Silver - $21
1BTC = $570USD
1 BURST = .00000005 BTC
1oz Silver ($21USD) = (1000 Assets * 100 BURST p/ Asset)
so Given all of the Above we could calculate what an expect value asset should be
.037 BTC = 1 oz of Silver
.05 BTC = 50 Satoshi (per Burst) * 100 Burst Per Asset * 1000 Assets to a an OzI see a discrepancy today of .013BTC which is calculated to be a margin of error of 35%. I understand over head costs and associated risks but I would expect those to be less than 10%.
I suggest one of the following happen, either initial cost per asset goes down, or the number of assets required to obtain silver become variable. I guess we could always pray for silver to go down in price as well.
Again I love the concept, from an investors prospective I need it to make sense. I also know that lots of people don;t understand assets or the supporting structures. Hope this is informative for the Asset designers and potential investors.
-IceBurst
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@crowetic Wow very cool! Can trade in for silver AND is backed by mining power? amazing!
One question is what is the mining power like on this? like what are you mining?
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@IceBurst said in NEW ASSET BY CROWETIC, kitsune, and mm of BURST and BURSTKORE extended teams! BSILVER - silver backed BURST asset!:
I hate to poop on other people ideas but as someone who deals in precious metals let me show you some of the holes.
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I think an asset back by a tangible asset (precious metals) is absolutely a fantastic idea, let me start there. This capital investment is one of the largest I've ever seen attempted by a crypto coin.
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Physical backing requires consistency. I became greatly concerned when you shared what the physical makeup of the asset would consist of. This can be corrected (and IMHO should be). Assets should all be listed as 1troy Oz .999 silver preferably sourced from the same location. Last week I purchased personally American Eagles @ $5USD over spot. why did I pick these? Here's why 1) Minted by the US Government so you know what's in it. You could use anything pretty much listed on apmex.com though. I did pay more because they were Eagles but eagles have the silver value and the collector value. For the purposes of this asset I would consider something like. http://www.apmex.com/product/27024/1-oz-silver-round-apmex
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If 1000 assets will equal 1oz there needs to be some strong supporting evidence from a financial perspective. Here is how I would expect the calculations to happen closely, I'll use $USD for my example but any currency could be used.
Today's market (all numbers have been rounded for simplicity)
1oz .999 Silver - $21
1BTC = $570USD
1 BURST = .00000005 BTC
1oz Silver ($21USD) = (1000 Assets * 100 BURST p/ Asset)
so Given all of the Above we could calculate what an expect value asset should be
.037 BTC = 1 oz of Silver
.05 BTC = 50 Satoshi (per Burst) * 100 Burst Per Asset * 1000 Assets to a an OzI see a discrepancy today of .013BTC which is calculated to be a margin of error of 35%. I understand over head costs and associated risks but I would expect those to be less than 10%.
I suggest one of the following happen, either initial cost per asset goes down, or the number of assets required to obtain silver become variable. I guess we could always pray for silver to go down in price as well.
Again I love the concept, from an investors prospective I need it to make sense. I also know that lots of people don;t understand assets or the supporting structures. Hope this is informative for the Asset designers and potential investors.
-IceBurst
Hello, and thank you for your opinions. We have decided that the silver will be weighed based on the actual silver, not on the coins, so if they are 90% silver coins, you will get 10% off the weight of the coin, to account for the silver only.
We have some more valued silver pieces, and when it comes time someone would like to cash out, we can discuss that, and come to an agreement that works for the person and us when they're deciding to trade in and receive their silver.
The prices are a little higher right now, but that is because it is also paying dividends, thus it has a higher value.
But, the overall goal is to make the silver prices LOWER than market rates. We will be doing this by constantly adding mining power in all different aspects, and purchasing more silver.
Also, we will be lowering the amount of assets needed to acquire 1 OZ of ACTUAL SILVER as the price of BURST / BTC and the asset fluctuates.
When it comes to a point that people would like to cash out the assets into silver, after 3+ months of the asset running and the silver reserves growing, we will discuss with the trader and find an agreement with a trade that works for them, making it fair for all parties based on how many assets they would like to trade in.
So yes, as of right this moment during the initial release, the price per oz may be a bit higher, but I'm making up for it by giving a bonus payout to the first dividends, and also we're adding a bunch of mining power, and more silver.
The asset will take a little time to 'even out', but I believe that after 3 months things will be pretty solid, then after 6 we should be able to offer lower than market rates on the silver itself.
But it's a way to hold silver, and collect a monthly dividend on it, it isn't JUST silver, it is silver, and mining power, and trading power, and sales power. So it SHOULD technically be worth MORE than market rates of silver, but like I said, the overall goal will be to make it not only LESS than market rates, but also have a higher dividend payout each month.
it's just right now that it will be a little more than market rates, but we will make up for it with the addition of mining power, and by a bonus payout to the asset holders. We will always make sure it is fair, and I think that because normal sivler doesn't give you payouts for holding it, the value in reality SHOULD be a bit higher than market rates, but our goal (once again) is to offer lower than market rates to BURST holders.
Let me know if this doesn't fully answer your question, and I'll make sure we work it out so that it makes sense to you as an investor. Thanks!
We will never rip anyone off, and we will always hold true to our word.
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The number of assets required to get the silver ARE variable, but at this point they are 1000/oz until we get the asset sufficiently built up, hopefully this resolves your issue ,thanks for the comments!
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@crowetic That's something unique .... I liked that !
But one question ... why not release such thing via website ?
Wallets will keep it limited only to Burst miners ... Why not turn this as an investment opportunity for other investors ?Generally people find it boring to download a wallet & invest in assets ... But are more comfortable to invest via sites....
This would give Burst Coins a better visibility improving its performance on exchanges :)
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@Castiel You can access the online wallet to get into the asset marketplace. The market place is only accessible via a wallet, but there are online wallets, eg: wallet.burst-team.us
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@haitch I know how to use, but people outside burst world who are not into mining may find it difficult :)
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@Castiel said in NEW ASSET BY CROWETIC, kitsune, and mm of BURST and BURSTKORE extended teams! BSILVER - silver backed BURST asset!:
@haitch I know how to use, but people outside burst world who are not into mining may find it difficult :)
The whole point of this, is to provide a cheap silver gateway to BURST community members. If other investors want the opportunity to be involved, then we simply teach them the way of the future, BURST way!
The fiat system is outdated, and will soon be done away with, this is the future, and the people should really start learning how to use it!
If you have anyone who would be interested in getting in, send them my way, and I will explain to them how to go from USD to BURST, and get into the asset.
When we get our decentralized trade portal completed, it will be possible to purchase BURST assets directly with BTC, and that should provide a bit of help to newer people as well. But as it sits, it isn't very difficult to get into BURST, and I think explaining how to do that will help people in the long run...
Give a person a fish, or teach them how to fish, right? ;)
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@stupendelious said in NEW ASSET BY CROWETIC, kitsune, and mm of BURST and BURSTKORE extended teams! BSILVER - silver backed BURST asset!:
@crowetic Wow very cool! Can trade in for silver AND is backed by mining power? amazing!
One question is what is the mining power like on this? like what are you mining?
The miners are still being put together, some of them are finished now.
We will be mining ETC, ETH, and any other profitable GPU coin, as well as most likely HODL for the CPU, then of course, BURST for HDD. I will be posting pictures of the miners, the silver, and more once everything is setup, etc.
For the first 3 months, it is a build-up period in which we're finishing the building of the miners, and stashing of the silver. The next 3 months after that, will be finalization period to make sure all assets are backed 100%, then continuing to add mining power, and silver to the asset will be a long-term goal.
We will be working out the details and posting them all on http://burstcoin.online for real-time tracking of the asset funds, and mining systems currently mining for the asset.
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@crowetic You are right & I liked that line
'Give a person a fish, or teach them how to fish, right? ;)'I got one one more question ...
Lets say that if the value of Burst keeps going up on market, don't you think Asset price (not asset value) will keep going down ?Just for quick example,
Price Today
2 Burst = $1 = 1 AssetPrice Tomorrow (When Burst Goes up)
1 Burst = $1 = 1 AssetSo now same asset which was worth 2 Burst yesterday is now worth 1 Burst due to Burst appreciation against USD
So Investors lose 1 Burst ?
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@Castiel Your thinking on the value of an Asset is limited in terms of value. Let me rephrase your question and you can answer yourself what happens in the real world.
You buy a Widget for 1 Burst which was $1 per burst, the value of the burst strengthens to 1 burst is worth $2. What is your asset worth now, $1 or $2? I would say you made a sound investment by purchasing an asset that was purchased with Burst. The asset (assuming it is unchanged) is still worth 1 burst which could be sold and traded back to $2. Congratulations you just doubled your money.
HTH,
-IceBurst
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@IceBurst unless everyone else realizes this and demands half the price for the asset because burst would be worth more.
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@ddos For your comment to be true something has to drive the value of Burst, Burst like bitcoin has no tangible value initially. When I commented to say that an Asset backed by a physical item (in this case silver) is a wonderful idea it is because it provides a realized backing and truly strengths Burst. It could be any number of physical things that are desirable. In the case of BTC you were basically paying for the ability to procure good anonymously hence the greatest use initially was drugs (a la Silk Road) but it is now an acceptable form of payment with many major retailers which means it's reached mainstream as a payment type. A currency; Burst, backed by real value (in this case silver) also provides a fall back mechanism. This could be one of the major steps to becoming a recognized currency for the market places.
I just don't want to see the newest Asset become "Zombie Apocalypse Kit", "We convert burst into items that help you survive the Zombie attack!" In the armory we stock Bullets and MREs.
Where do I stand on this asset? Personally I respect and value the core members of the Burst team, they are inventive and concerned about the long term value of Burst which in turn creates typically well thought out assets. Today I believe this asset is over valued given the current release prices but that's what makes an asset great, people will only pay what they deem it to be worth. I will watch the asset value trading prices and the conversion price from assets to 1oz silver bullion. If the numbers makes sense I would certainly buy in, again this asset has the potential to be the strongest one in existence due to a physical backing.
Enjoy your morning coffee while you continue to read my diatribes.
-IceBurst
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@IceBurst I like to read your comments, they make sense and are well written :) Good day.
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@crowetic I like the asset idea of investing in Silver. But I think it would be more helpful of describing the asset investment in terms of percentage allocations. % allocated to actual silver, mining power and trading plus sales power. This way at least one can make a more informed decision of how much to invest and speculate on the actual gains.
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The document I posted has all of the details, and I would like to point out...
The asset / silver trade ratio will be in constant flux, we will have to come to an agreement during the time someone wants to cash out, and make a fair deal at that point based on the price of the asset, BURST, and BTC. We will make sure the deal works for all parites.
Also, The asset will have mining power of all types mining for it. Basically you can think of it as an asset that is like holding silver that also pays you dividends. Yes, we realize that the initial trade in price (though it isn't necessarily 'real' because you can't trade in for 3 months anyway, and things are certain to have changed by then) is a bit higher than the market rates of silver, however, with the mining power going to the asset, and the payouts to the holders, eventually, the prices on the silver will be able to be lower.
We will likely hold the price of silver anywhere from 10-25% lower than market rates when we get to our goal.
We're still in the process of setting up a page on http://burstcoin.online that will keep up to date numbers on how much mining power, what types of mining power, and how much silver the asset has in its possession, as well as what TYPES of silver, because we have a bunch of different types, some of which have value over the value of the silver alone.
So yea, the number of assets to silver ratio will be in constant flux, and will be updated regularly once we hit the 3 month mark (the time that the silver can start being redeemed if the asset holder chooses to do so.)
We think that it is a great option to purchase silver, that pays you dividends, and also helps keep the price of BURST up.
Any other questions feel free to ask, I just wanted to point out the fact that when the trade-in is requested, we will have a talk with the asset holder wishing to trade in, and we will come to a deal that is fair for all parties.
Thanks!
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@ddos said in NEW ASSET BY CROWETIC, kitsune, and mm of BURST and BURSTKORE extended teams! BSILVER - silver backed BURST asset!:
@IceBurst unless everyone else realizes this and demands half the price for the asset because burst would be worth more.
The asset to silver trade in ratio will be constantly changing since silver is tied to USD. This will also force us to maintain a growing silver reserve, and continue adding mining power to the asset with which to purchase more silver, and also pay out the asset holders.
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also, just in case no one else noticed the ratio...
it's split 50-50 on everything, 50% to buying more silver and 50% to the asset payouts. The asset hosting fees I will cover from my own payout from the 10% that I hold of the asset, so the asset holders will not have to worry about hosting costs.
I do have the ability on the sales, and trading, to pay as little as 10% to the asset holders and 90% to the silver reserves, but I will generally try to keep it 50-50 on everything as to not confuse matters.
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As of right now, the mining power I have that will be going to the asset initially is...
2 - AMD 380 cards
1 - AMD 470 card
1 - 7950 AMD card
1 - 280x AMD card
5 - 750ti NVidia cards
1 - 970 NVidia card
1 - S7 antminer SHA-256
1 - 6th gen i7 CPU 8 threads
10+TB initially more coming of HDD power
(ordered but not arrived yet) 8 24 physical core XEON servers (only 4 of them will be mining most likely, haven't decided fully yet)
(not sure if I will be using this or not, but 1 - 8core 4th gen i7 and 270x GPU
2 - 12 core i7 rigs one 5th gen one 3rd gen extreme edition CPU
MUCH MORE COMING SOON we are only just beginning to acquire more mining hardware :)
All of the above are subject to change, the finalized mining power going towards the asset will be listed on http://burstcoin.online when the site is up, I will be posting about it when that happens.
The list of mining, and silver reserves, with pictures, will be posted on http://burstcoin.online shortly, I've been really busy with a lot of things so I haven't had time to get the site up, but it will be done shortly. Thanks!
