Introducing Bitcoin forward
If you intend to hold your bitcoins for at least 6 months, then buying bitcoin forward contracts directly from the mine may be just what you are looking for. Bitcoin forwards are similar to gold deferred-delivery purchase agreements, which have been used to finance precious metals and gemstone mines large and small for hundreds of years. Some of the largest Asian miners use Bitcoin forward contracts to finance equipment purchases. This may have helped contribute to their present domination of the Bitcoin mining industry.
Bitcoin forward purchases are now available in the USA.
Now, for the first time, Bitcoin forward contracts are available for purchase directly from our mine. Bitvest Digital Mining, a US-based, large-scale enterprise miner, is celebrating our third year by offering you, the long-term Bitcoin buyer your best opportunity to enter the Bitcoin market or to increase your holdings, all at a substantial discount. Buy Bitcoins within your IRA – 401K or SEP.
BitvestMint llc has recently been approved to offer you the ability to rollover your IRA/401k or your SEP to buy Bitcoins and or Bitcoin Forward Bitcoin for your self-directed IRA. Please visit BitvestIRA.com to get started.
What is buying Bitcoin forward?
Simply put, buying Bitcoin forward consists of an agreement between yourself and Bitvest Digital Mining d/b/a www.bitvestmint.com to purchase a portion of our Bitcoin production at a discounted price, to be delivered at a predetermined schedule in the near future. In this case Bitcoin transfers begin after 180 days from the date of your purchase. Forwards offer downside protection from short-term price manipulation and increased profitability for those who have an eye towards the future of Bitcoin.
What is a forward contract?
Forward Contract as defined by the CFTC: Is a cash transaction common in many industries, including commodities such as Gold, Gems Stones, Farmer’s production or Oil and Gas. Whereas a buyer and seller agree upon delivery of a specific quantity of goods at a specified price for delivery at a future date. Terms may be more “personalized” than is the case with standardized futures contracts (i.e., delivery time and amount are as determined between buyer and seller). A price may be agreed upon in advance or there may be agreement that the price will be determined at the time of delivery. (Reference; www.cftc.gov/ConsumerProtection/EducationCenter/CFTCGlossary/glossary_f)
What is the discount rate?
The current discount rate ranges between 10% and 20% below the spot price as established on the US-based exchange (GDAX) owned and operated by Coinbase Inc. www.coinbase.com at the time of purchase.
How can we afford to offer you bitcoins at such a large discount?
A simple mathematical formula is used by all Bitcoin miners to extrapolate the cost of producing each newly minted Bitcoin. Based upon the network hash rate, cost of mining equipment, and the electricity used in the “mining” process, we know how much it costs to produce each bitcoin. As such, we only sell a fraction of our projected overall Bitcoin production, which is then held in an offline cold storage wallet off the Blockchain until customer payments are due. A percentage of the remaining bitcoins are sold, in order to cover our capital costs for hosting and the electricity to run our mining equipment.