furuknap: Which is safe and fine, it's just a strategy of caution rather than risk. Great for investors looking for long-term profitability. Except for the halving effect, of course.

furuknap: In Febraury, we're just over 1.5 years away from halving.

furuknap: That is because of the halving effect; investments now have much shorter time before halving, so they can't be as high as they used to be.

furuknap: http://coin.furuknap.net/what-is-the-halving-effect-in-bitcoin-mining-investments/

furuknap: With the halving effect, AM is losing money for investors every week. With 30TH they wouldn't even beat NASDAQ composite.

furuknap: For your consideration: http://coin.furuknap.net/what-is-the-halving-effect-in-bitcoin-mining-investments/

furuknap: If halving effect is 50% then each month, with a price of 3BTC/share, AM 'loses' 0.0340909BTC.

furuknap: Yeah, but problem is that we don't know what happens to price when halving becomes more prevalent in mining discussions.

furuknap: This is the halving effect I've been touting for the past few weeks in practice. We know that once a more powerful bond comes online, the less powerful bonds will drop in dividends. It's simple math, plus and minus. So why aren't anyone even noticing this?

furuknap: Of course, because the halving effect every week takes away 0.05 of dividends at ฿2.

furuknap: AM cannot grow much further in terms of revenue and dividends at these price points do not add up when you take halving effect into account.

furuknap: Chaang, at 2.0, the ROI is roughly 2% per year, taking the halving effect info account.

furuknap: Or rather, there are enough people that don't take the halving effect into account to ignore it :-)

furuknap: The higher the price, the higer the halving effect.

furuknap: But the stable income is not as high as people think it is. friedcat has said he expects 10% on average. That correlates to around 0.006 per week. From that, you need to deduct the halving effect, which is 0.005, yielding 0.001 in real ROI.

furuknap: Nope. I care for price only to the extent it affects cost of halving effect.

furuknap: It's really not that complicated. It makes a couple of assumptions. 1) With the current dividend level, AM will focus solely on churning out cash, not preparing for 2016 halving, and 2) in 2016 due to halving of revenue, share prices will halve too. If those assumptions are correct, you simply divide half the current share price over the number of weeks or months, subtract that from the dividend based on expected hashrate (whi

furuknap: I don't get that sarcasm. Do you not believe that halving will disrupt profitability of miners?

furuknap: Dividends don't amount to much if you account for the halving effect in 2016.

furuknap: I do actually believe in AM as a long-term prospect so that's why I try to get people aware of the dangers. I'd like to see AM at around 1.3 as that price with projected dividends would roughly defend a 15-20% yield until the 6.25 halving.