Asset Buy Back - Burst Valuation



  • Well this question is specially for All Asset Issuers & Admins, But open to everyone for discussion :)

    I just wanted to understand how you guys are planning to Buy Back Asset Shares in Future, if the Value of the Burst Keeps Increasing....

    So for example, Value of 1 Burst right now is $0.0006
    So if you Issue 1,000,000 Shares with the value of 1 Share being 1 Burst, current valuation will be $600

    After an Year, if the value of Burst jumps to $1 per Burst... Valuation of your 1,000,000 Shares will be 1,000,000

    So All Asset Issuers... How are you planing to Buy Back your Shares ?? or will you be making that $1,000,000 within an year ??



  • @Castiel Well so far as my asset is concerned there is some information in a Google Sheet i have made :) i plan to build up slowly a buyback program for all shares that will stay in buy order. I doubt BURST will increase its price drastically anytime soon, but if it did so well i guess i would need reevaluate. Since i keep all logs it wouldnt be hard to calculate average price in satoshis and go from there.

    But since asset is long term i hope investors wouldnt want to sell it anytime soon either :)



  • It's definitely a flawed system as of now. IMO the asset issuer should insure the asset at the price (value) that it is offered at. For example , NEWS is issued at 100/asset. Should value of Burst increase, any asset of NEWS would be insured at the initial purchase value. If Bursts value doubles in this time then the asset issuer returns 50 Burst as a buyback for one asset.

    An important step towards solving this problem is incorporating fiat valuation of Assets.



  • @nox or as i said you keep logs :) but again i think it depends from asset to asset and what it does. Also like all investing stuff there are risks.



  • Only pure burst mining assets can retain value. Any other asset that is tied to anything other than burst mining loses value (in burst) as burst price increases. BUT , there is one thing to keep in mind : all assets grow in value regardless because all/most of them have a reinvestment failsafe. That's why that is in place. By reinvesting us asset managers insure not only that the value of our venture grows over time, but also the fact that it keeps up with the rising price of burst as much as possible.

    One other thing investors need to consider is real life dollar value. You invested a dollar today, and regardless of the burst price next year, if you invested in the proper asset, your share dollar value would have increased anyway.

    The idea of the assets is to increase your earnings/invested money the best way we can. Whether if it's pure burst or dollar for dollar value, that depends on each asset according to its type and goal. I for one go for the dollar value, because that's what i trade. People who have been with 402 since the beginning for instance, for every dollar they invested, have earned 2 more :) (fucked if i know how much in burst, but i believe 3x) . But anyway, even if the price of burst becomes 5000 satoshi a piece, their share will still be worth 2x as much in dollars (although less in burst unfortunately...) , but i have plans for that as well .

    This is indeed a very touchy subject and it's a matter of perspective. Either way you take it, your wealth increases one way or another by investing in assets.

    And come to think about it, not even mining assets can retain their value... the equipment that cost 100k burst today, when the coin price increases will be worth much less, so in case of liquidation...again it's a dollar to dollar value. Unfortunately, either way you want to go, it's still all tied to the real world moneys...

    Safest bet would be to hold on to just the coins themselves, but then comes the question : what if burst never increases in price? With the exploding price of BTC, burst can stay at under 100 satoshi forever because again, it all ties to the dollar. 100 satoshi today might be worth 1 dollar years from now... the economics are fucked up i know, but the base idea stands : income is generated either way, unless it's a shitty asset or a scam.

    And one final thought : people investing into assets attracts entrepreneurs to burst and allow issuers to come up with all sorts of crazy and useful stuff for the comunity. If it weren't for the assets and people investing in them, this coin would be fucked because aside from the mining, nothing else would give it value. This way we have assets and crowdfunding, all atracting new tallent into the comunity.



  • @LithStud Well I have consider 1 Burst as price per asset ... If I turn it into 10 Burst Per Asset & say that price of 1 Burstcoin will be 10 Cents... Result still remains the same.

    Doesn't matter how much you maintain the logs .... The question is about your purchasing power capacity & undoubtedly its one of the case where you will be able to make to $1,000,000 to cover your buyback.... Most of the Assets will either fail or turn into SCAM :)



  • @LithStud

    Good job



  • @Castiel @nameless has explained the best :) well he is good at these things so no wonder :D



  • @nameless @LithStud Hopefully I turnout to be wrong on this matter in Future :)



  • Proud to say M2b is a pure burst Asset and upon reaching it's threshold of 5x the houses bank we will pay everyone off in one feel swoop giving Roi + tier Bonus + and a little extra for holding :) not affected by burst price

    1 Burst = 1Burst :)



  • come to think about it, @dagentlemang and @Zeus run the only assets based purely on BURST with no dependency on any real-world items/currency and that can fully liquidate at 1:1 BURST value at any time. So there's your answer kids!



  • @nameless

    Yep, so if you're not one of those names, there's no obligation to insure the asset :)



  • @nox said in Asset Buy Back - Burst Valuation:

    @nameless

    Yep, so if you're not one of those names, there's no obligation to insure the asset :)

    lol... definitely yes. But I hope @nameless can do better than only buyback the shares. If the asset's running with nice divvy, and its value keeps increasing, I don't think there's a need to liquidate the asset. Just throw 'em in AE with double or triple of initial price, and get the cash.



  • @nameless if i was to make a assert how could i or any of us follow that 1:1 ratio?



  • @Castiel If an Asset has sold out 1,000,000 Burst and eventually becomes worth 1Million dollars it has paid its investors back. The fact that the investors have held their Burst may also be the reason why Burst became worth 1 dollar. So the investors have profited from the Asset on the way up. If someone bought in 1,000 shares at $0.0006 and they were paid dividends for 1 year of 10,000 Burst, they now have $10,000. Your asset will be affected by the current price and will pay accordingly. It is inherent in the Asset. What took money from an investor as a promise to pay will always be a set amount. Like linking to Silver, you just split the accumulation of that silver bought by the asset.

    If it happens overnight then this still holds true since you still have to pay Burst to the holder of the asset which is now worth $1. By giving them Burst you now fulfill the assets obligation while you now have $1Million dollars to yourself. Just keep paying and at that point they can also Sell the Asset at market value. It will always be worth more than what they paid for it generally if you have a good asset.



  • @falconCoin The 1:1 ratio doesn't apply to an asset, you are paying in Burst and if you gain $1Million on your asset you will be held to the same structure that started the asset. Lets say it is a Mining Operation. It will have paid out investors over time, if they hold their Burst they also profited. The amount of Burst that can be mined by that asset will be diminished at that point but you have 1 Million to invest in hardware now, you could compete or just buy the shares back off the market to nullify your obligation and take even more profit. If you put in a high bid to buy people would sell to you. If people bought in and the price goes up and they are not happy with the return they may also sell to any buyers at any time and get out.

    You only have to fulfill your end of the bargain. If things go out of balance then there won't be buyers of your asset. At that point you are a Burst Millionaire so you just pay your dividends and be happy. Most of the time an Asset will already be sold to buy things with so the asset may not make the 1 Million for the Asset Owner too. If they had to sell their Burst to buy Hard Drives to fulfill their Asset obligation then the asset may fail to attract new investors without injection of capitol. So it is only about your own participation level and promises.


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