Silk Road forums
Discussion => Silk Road discussion => Topic started by: Reseller on March 04, 2012, 05:19 pm
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The Definition of a Stock
Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater.
Being an Owner of Silkroad's stock
Holding a Silkroad's stock means that you are one of the many owners (shareholders) of the Silkroad and, as such, you have a claim (albeit very small) on the revenue Silkroad earns through its listing fee.
Purpose of DPR issuing stock:
He would issue stock for the express purpose of raising money to expand the Silkroad.
What do you y'all think?
Personally, I would invest roughly $20,000 - $30,000 of BTC into the Silkroad if I was given the chance. I believe this site will only expand and it has reached a sliver of its total potential.
Post up your opinions - noone will judge anyone.
Love
Zeus { BronzeFidelity }
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I see colossal potential in this site, I'm with you on this one. Technology is becoming more and more prominent in peoples' lives.
Not that up on money right now, so I couldn't put in that much BTC! lol.
Would EASILY trust a third of my wealth in this site, though.
-CA
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In theory, it doesn't sound like a bad idea, and I could see some ways in which it might work, but in practice, I think the risks outweigh the benefits. A couple of things to think about...
Calling it 'stock' might not be the best approach, because, as said in the OP, you're implying some sort of *ownership* stake in SR, and that implies some sort of control over the operations of SR that I doubt DPR is going to want to yield to some random set of 'investors'.
I also don't think DPR would want to open the books, as it were, for people to see how much money is or is not flowing through the coffers of SR on a monthly basis. Without that, how would the potential investor even know how to properly value a share of SR "stock" ?
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It would be a pretty lucrative investment if you could some how legally invest in a site like SR, but it would be like explaining to the IRS "I was just a share holder in the Medallin Cartel, I didn't actually do any of the smuggling..."
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Supposing the things Blackbird states could be overcome, it would like investing in a ponzi scheme. It will provide record returns for the time being but if it is ever shut down you will most likely lose everything. It also seems like a stock that could fluctuate wildly depending on BTC and new implementations so short-term day trading theory would need to be employed.
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Why do you think SR needs money in the first place?
I'm pretty sure they're doing just fine.
Plus, why would he want other people telling him what to do, and possibly be able to take over ownership of the site?
Its not that good of an idea, btc aren't really made for this application. They are made to be an anonymous currency.
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i don't think investing in a drug ebay is a great idea from a legal stand point
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Besides the legality of the stuff sold on the site, you would also have to deal with Bitcoins for your income. For one I only see this as a pain in the ass to try and easily exchange to "real" currency, but then you also have the legal aspects that some governments can try an impose on the Bitcoin itself.
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This is a horrible idea. Horrible horrible horrible.
Potential issues:
How is this stock going to be issued? Obviously no underwriter. IPO will have to be run by DPR himself.
How does a stockholder prove ownership? You don't want some central database of stockholders.
What kind of liquidity is the stock going to have? Zero.
There cannot be any auditing, independent or internal. Whatever DPR says the numbers are, they are.
Likewise - if dividends are to be paid out, how do we know DPR won't screw you on them?
Ownership of any amount in SR/Armory will put you at risk for RICO prosecution (among the dozens of drug/weapon trafficking charges).
As a user, I love SR, but I would never touch a potential stock issue.
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According to financial theory, any security is worth it for the right price, what kind of div yield we talkin? I can see the Prospectus now...
There's way to many complications for this to ever work. I think DPR will have to remain a sole proprietor/partnership.
Beyond that, I'm not so sure about the growth prospects of SR. The growth *rate* seems to have plateaued recently. Honestly I think something like this can only exist in a happy medium of size. Too few and get busted becomes increasingly possible. Too many and it collapses under its own weight or the adversaries crack down on the mail. Where the respective limits are is anyone's guess.
If you want to get into some bitcoin financial innovation though, I'm sure there's a market for derivatives.I'd buy appropriately priced put options with every order of btc.
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It's a theoretical question, obviously DPR isn't in the business of running a public company.
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According to financial theory, any security is worth it for the right price, what kind of div yield we talkin? I can see the Prospectus now...
There's way to many complications for this to ever work. I think DPR will have to remain a sole proprietor/partnership.
Beyond that, I'm not so sure about the growth prospects of SR. The growth *rate* seems to have plateaued recently. Honestly I think something like this can only exist in a happy medium of size. Too few and get busted becomes increasingly possible. Too many and it collapses under its own weight or the adversaries crack down on the mail. Where the respective limits are is anyone's guess.
If you want to get into some bitcoin financial innovation though, I'm sure there's a market for derivatives.I'd buy appropriately priced put options with every order of btc.
There is a guy who used to work for Citi who's got a BTC exchange in beta right now (been in beta for a LONG time, so my hopes get less and less every week of it becoming a reality). If he launches live he's planning on offering a full buffet of derivatives on BTC and potentially other online currencies. Could be some interesting opportunities.
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According to financial theory, any security is worth it for the right price, what kind of div yield we talkin? I can see the Prospectus now...
There's way to many complications for this to ever work. I think DPR will have to remain a sole proprietor/partnership.
Beyond that, I'm not so sure about the growth prospects of SR. The growth *rate* seems to have plateaued recently. Honestly I think something like this can only exist in a happy medium of size. Too few and get busted becomes increasingly possible. Too many and it collapses under its own weight or the adversaries crack down on the mail. Where the respective limits are is anyone's guess.
If you want to get into some bitcoin financial innovation though, I'm sure there's a market for derivatives.I'd buy appropriately priced put options with every order of btc.
There is a guy who used to work for Citi who's got a BTC exchange in beta right now (been in beta for a LONG time, so my hopes get less and less every week of it becoming a reality). If he launches live he's planning on offering a full buffet of derivatives on BTC and potentially other online currencies. Could be some interesting opportunities.
Now this, this has piqued my interest. Very, very interesting.
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According to financial theory, any security is worth it for the right price, what kind of div yield we talkin? I can see the Prospectus now...
There's way to many complications for this to ever work. I think DPR will have to remain a sole proprietor/partnership.
Beyond that, I'm not so sure about the growth prospects of SR. The growth *rate* seems to have plateaued recently. Honestly I think something like this can only exist in a happy medium of size. Too few and get busted becomes increasingly possible. Too many and it collapses under its own weight or the adversaries crack down on the mail. Where the respective limits are is anyone's guess.
If you want to get into some bitcoin financial innovation though, I'm sure there's a market for derivatives.I'd buy appropriately priced put options with every order of btc.
There is a guy who used to work for Citi who's got a BTC exchange in beta right now (been in beta for a LONG time, so my hopes get less and less every week of it becoming a reality). If he launches live he's planning on offering a full buffet of derivatives on BTC and potentially other online currencies. Could be some interesting opportunities.
Now this, this has piqued my interest. Very, very interesting.
yeah I check back at least once a week to see if any new progress has been made on it. A multi-online currency exchange would be pretty amazing, where you could acquire LR, Pecunix, UKash, bitcoins, regular USD/Eur/etc., and even gaming currencies. Such an exchange would make millions, I would think. If I had the bankroll and programming skills and lived in a non-reporting banking district I would probably attempt such a thing myself.