(cache) Bitreserve update..... : Buttcoin

A month ago there was lively discussion about Bitreserve.

Since then, their leverage ratio has increased to 19.55 to 1 and their capital has dropped $4K to $124,000 even though the price of Bitcoin has increased. This is a higher leverage ratio than allowed for a bank.

I qualify that this is only based on their reported status; they may have other financial resources (e.g. paid in capital, capital commitments from investors).

From June 11:

You are not "over reserved" any more than a typical bank is. If this is your full balance sheet you have about 14.47 to 1 leveraged (i.e. 6.9% of assets as Capital). This is calculated as assets/(assets-liabilities). You have about $128,000 in Capital, each 10% increase in the value of the GBP will blow away $19,000 and each 10% decline in the value of the Bitcoin will blow away $18,000. You are also exposed to the risk of a bank failure. If the bank holding your USD reserves goes under, only $250,000 is insured. You would need other sources of liquidity while you wait to get the rest.

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トップ新着論争中古い順 Q&A

[–]timparsa 0ポイント1ポイント2ポイント 2時間前 (5子コメント)

[–]ihatepasswords1234 1ポイント2ポイント3ポイント 1時間前 (2子コメント)

[–]timparsa 0ポイント1ポイント2ポイント 1時間前 (0子コメント)

Why wouldn't we include what? Why wouldn't we publish our company assets and liabilities? Short answer: the company balance sheet is irrelevant to the real-time transparency of our cloud money system.

Bitreserve is the world's first real-time transparent financial service. That means we publish a real-time accounting of our obligations to our members and the assets in our full reserve that back those obligations. Bitreserve's balance sheet is irrelevant to this transparency.

I don't know what you mean by "assets in your reserve go under." Assets can change in value relative to each other but an asset cannot "go under."

Banks can go under and do with alarming regularity. The reason they do is because the assets they hold are not sufficient to meet the obligations to their clients. Because Bitreserve operates a full reserve that is held transparently and audited quarterly, there is zero risk that assets in our reserve will not be sufficient to meet our obligations to our members.

Thanks for your interest in BR!

[–]ChicagoSchooler 0ポイント1ポイント2ポイント 28分前 (0子コメント)

I trust you've read this comedy gold.

Banks can go under and do with alarming regularity. The reason they do is because the assets they hold are not sufficient to meet the obligations to their clients. Because Bitreserve operates a full reserve that is held transparently and audited quarterly, there is zero risk that assets in our reserve will not be sufficient to meet our obligations to our members.

That's it ladies & gentlement. Bitreserve operates a "full reserve".

Wait, hold on. What's a "full reserve"? Does that mean that assets exceed liabilities? No, it can't be that because the average US bank has that, too, and they fail alarmingly regularly.

Could a "full reserve" mean that assets & claims to assets are perfectly matched? It can't mean that because there are many currency liabilities with no assets at all!

Wait a second. If you look closely at their balance sheet, you'll see that assets are vastly overinvested in BTC, metals, and dirty fiat USD.

There's an entry for 142891.60 GBP in liabilities with no GBP assets, 248113.78 EUR in liabilities with only 44847.51 in assets. That's a lot of yummy exposure.

Apparently "full reserve" has an Austrian meaning not used by anyone else in the sane world like "inflation" being the change in the money supply because we all know that's relevant.

How do people get away with statements like this?

there is zero risk that assets in our reserve will not be sufficient to meet our obligations to our members

Lawyers, start your lawsuits!

[–]ChicagoSchooler 0ポイント1ポイント2ポイント 54分前 (0子コメント)

[–]endmathabusenow[S] 0ポイント1ポイント2ポイントたった今 (0子コメント)

π Rendered by PID 31915 on app-302 at 2015-07-16 19:51:48.703656+00:00 running 6d3411e country code: JP.

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