So, about four weeks ago I took my £4,000 profit, added another £11,000 from my savings and set about buying and building Bitcoin and Litecoin mining hardware in my spare time. For Bitcoins, I invested in pre-orders of new, specialised mining hardware called ASICs. For Litecoin mining rigs, I bought lots of Graphics cards and built computers out of them in plastic crates. I also regarded this as a home R&D project for my main business, Memset. We\’re a hosting/data centres company and I\’ve been keen for us to experiment with GPU-based cloud computing so I was reassured that even if it came to nothing, I could likely find a use for what I learned.
Along my journey I had discovered that there were virtual securities exchanges games where one could float a virtual stock or bond quoted in crypto-currencies, and this too intrigued me. I decided I was going to need some help, so rounded up a few more techies, two of whom I\’d met on the bitcoin forums and another two who are work colleagues. They all agreed to help me out in their spare time in exchange for shares in my planned virtual company. Next, while on a scuba holiday between dives, I made a business model and plan for our new company, \”CipherMine\”. After crunching the numbers, my model was forecasting that with an extra £25,000 investment, we could be making £20,000-£30,000 per month profit from mining by the end of the year. It looked like we had a virtual business with potential.
By this point, I had also come to believe that Litecoins had greater potential for growth than Bitcoins, so I eschewed the Bitcoin exchanges and instead submitted CipherMine for flotation on Litecoin Global. We made our initial public offering on Monday last week. I think I probably got the IPO price a bit wrong since the 20,000 shares I listed sold out in a matter of hours. We raised a total of 15,667 Litecoins in exchange for 20% of CipherMine\’s shares; about £27,700 at current prices. We are in the process of investing that money into more mining hardware, but in the meantime, our share price has continued to rise. As I write this, under a week later, the shares are being actively traded at about 1.6 Litecoins each; double the IPO value.
What? There are virtual stock markets out there that can be played for real money? You mean you can float a company with no, I repeat no, oversight from the FSA, Stock Exchange or anything like that?
Jesus Mary and Joseph.
So, who\’s in with me then? Might need to have some techies aboard if we\’re to go mining. But Jeebus: a bit of a business plan and you can float and trade? Surprisingly I would insist that any such adventures were in fact honest. But this is such a way to make hay!