Silk Road forums

Support => Feature requests => Topic started by: got2luvfreemarket on September 06, 2011, 09:14 pm

Title: Idea to stabilize our market
Post by: got2luvfreemarket on September 06, 2011, 09:14 pm
After watching all my profit go down the toilet with the bitcoin these last couple weeks I thought of something and I still can't think of a reason why it would not work. Maybe there is something I haven't considered so I wanted to throw it out here and see what you guys think.  My idea is basically at some point to cut off all bitcoins from going in and out of silk rd and creating our own internal market and setting the price at say $10. After all a currency is worth what people think its worth.  The only way to get bitcoins on silk rd would be to sell something or purchase them with cash in the mail from silk rd vendors and we all agree to hold the price at $10( + service fee which is up to the vendor giving room for healthy competition). Buying and selling Bcoins through silk rd is faster and safer than the whole Mtgox bullshit anyway.  The very announcement that this would happen in the near future would quickly push the price up close to $10 because of all the people wanting to make money selling the bcoins to the would be buyers on silk rd. Then once the price gets close to $10 we shut out all incoming and outgoing bitcoins.  There are some big players on the bcoin market that are able to drive prices in both directions making a lot of money at our expense and putting fear into would be buyers and sellers alike. Not to mention I would not put it past our Government to try and manipulate the bitcoin market somehow. This would protect buyers, sellers, and  greatly increase confidence knowing we can always buy and sell our bitcoins for approx the same price. Just thinking out loud.
Title: Re: Idea to stabilize our market
Post by: RickyRango on September 06, 2011, 11:24 pm
Maybe we could make our own currency?  Anarchist communities have been known to do this, and they usually tie their currency to something tangible.  There was some anarchist settlement in the US where each of their dollars equaled 3 hours of work.  In the free settlement Christiania in Denmark, they had coins that could be used to purchase weed.

Maybe we could create Silk Road Bucks where the value equals a certain amount of weed.
Title: Re: Idea to stabilize our market
Post by: johnwholesome on September 07, 2011, 12:11 am
That's all nice and fine, adore the idea, except, there's one big issue: Sellers need to pay the rent, and the product etc. etc. etc.

So, while in theory it's all nice and fine, it's practically impossible. How do you figure it would work. Seller opens SR account with x amount of item ABC. Seller sells all ABC. Now what? How is seller to get more ABC to distribute to the market?
Title: Re: Idea to stabilize our market
Post by: got2luvfreemarket on September 07, 2011, 03:00 pm
We already have a currency and what I'm talking about is making it OUR currency.  Using our power as the biggest bitcoin community to stabilize our currency and prevent people from driving the market up and down, and  making a lot of money off of us.  If we all agree that a bitcoin is worth $10 then that's what it will be.  The announcement would force almost all bitcoins into silk road then we cut off all withdrawals and deposits other than through silk rd vendors and we make the price $10 and we would  have a stable market.  What am I not seeing?
Title: Re: Idea to stabilize our market
Post by: mseller on September 07, 2011, 03:29 pm
SR market btc exchange has some impact on fluctuations but not so much.
To support your idea we need an exchanger who would offer fixed buy/sell btc price at $10.
But no exchanger would accept a risk to change at fixed rate. What if price is $5 on mtgox? Your idea is based that SR has large impact on btc value and there is no evidence to support that.

edit;
Op idea can work only if;
exchanger work only with sr members.
Payed $10 per 1btc and sell for $10 (all transaction would have and additional fee)
SR members must have passwords to log onto exchanger to buy/sell

Bad thing is that there are many non US vendors and buyers. How would they get their money? Where? Connection to SR? No way!
Title: Re: Idea to stabilize our market
Post by: MrDdroMcGillacutty on September 07, 2011, 05:47 pm
Buy bitcoins. The supply will go down causing the price to go up. The more buyers the better. Tell your friends and neighbors to buy bitcoins. You can buy them at Chase and Wells Fargo banks. Maybe others. Tell your friends and neighbors it's the greatest thing since sliced bread and that they should buy and hold them for about 2-3 months. THEN SELL!! Keep them in a safe place. With all the hacking and phishing going on the internet today, one has to be careful. Mt.Gox and MyBitcoinWallet are good examples of good companies getting robbed! Don't let that happen to you! I suggest putting them in my VAULT/wallet for safe keeping. Deposit Here: 121YoTfPjkxiHRwQMSG5cGHhRxkq7nGnie  The BTC is safe with me. Then when the time is right, ie, high btc price, SELL! Sweet!
Title: Re: Idea to stabilize our market
Post by: chronicpain on September 07, 2011, 06:54 pm
Ok, so now SR makes the value of the btc 10 dollars yet the btc value outside is 5.. As a vendor what am I going to do with all these bitcoins that I can only sell at 5? See the problem? The only way it would work is if someone would buy the bitcoins from me at 10
Title: Re: Idea to stabilize our market
Post by: got2luvfreemarket on September 07, 2011, 07:28 pm
Let me try this again.  The price of the bc outside of silk road would be irrelevant. If my idea was implemented the only way to get bitcoins would be to buy them from a silk rd vendor for $10.  This will create a market for people buying and selling bitcoins on silk rd for $10 with a competitive service fee because that will be the only way to get and sell bitcoins from silk rd.  You will not be able to bring in cheaper bitcoins from your wallet after the cut-off or send them back to your wallet to send to mt gox or whatever. EVERYTHING WILL HAVE TO HAPPEN THROUGH SILK ROAD. The very essence of the idea is to cut off all incoming and outgoing bitcoins and control our own bitcoin economy. We could set a date and on that date at a certain time all bitcoins on silk road will stay on silk road and no new coins will enter.  They will all be bought and sold on silk road for the agreed upon $10. There will always be a market for people providing the service of buying and selling our bitcoins.  All problems solved.   Still waiting for a reason why this won't work. 
Title: Re: Idea to stabilize our market
Post by: mseller on September 07, 2011, 07:50 pm
Who and where would btc be exchanged to real money? Explain little better.
Let say I am an venor and item is priced $100(10btc)
You are a buyer.
How will you and where purchase btc and where and to which account(LR or ?) will receive btc to real$ in bank acc ?

Or you suggesting that we all keep our btc till btc value of $10 ?
If SR would be that who would pay/withdraw "somewhere" all annonimous market is the uselles.
we can simply use beans and say 1 bean worth 1$. But where will I get real money?
Like I said, moneypak is availible only for US. There are many non US vendors, how and where will they cash out money?
Your idea can not work just because that fact.
Now SR has a hedging, fluctuations does not really matters. Demand and supply - buyers buy btc, buy something on SR and vendors withdraw btc and exchange ASAP.
Only danger is time beetwen confirm shippmant and wd/exchange time if order is hedged. (That cost around 4%
Title: Re: Idea to stabilize our market
Post by: got2luvfreemarket on September 07, 2011, 09:57 pm
Its easy!  CASH IN THE MAIL!!!! I have liquidated all my bitcoins since I started selling through silk road by cash in the mail.  .  It will be "unlawful" to sell bitcoins for less than $10 and there will be no way to import bitcoins from a cheaper source. Obviously since all of our bitcoins will be bought and sold this way there will naturally be many people wanting to get in on the action which will be healthy competition keeping service fees low and  so buying and selling bitcoins will be easier than ever.  If you want bitcoins you post an add.  If you want to sell you will respond to an add and that will be the only way to buy and sell.  There will naturally be plenty of adds because of the laws of supply and demand.   Its so simple.  Keep the questions coming, lets figure this shit out.
Title: Re: Idea to stabilize our market
Post by: mseller on September 07, 2011, 10:40 pm
I understand that for US will be relately easy to send  cash in mail, where has a lot of mailing services dcn and other.
But to send a cash to vendor? And vendor should give an address, ??? Come on..
I wont repeat that for non US that would not be accepted.
And again, why to bother?
Hedging is solution. Its just a matter that buyer transfer BTC to SR and purchase ASAP.
To vedor to confirm a shippmant (that is when a hedging start) and that when BTC are relased, to exchange it to real money ASAP.
Title: Re: Idea to stabilize our market
Post by: got2luvfreemarket on September 07, 2011, 11:18 pm
I guess it would be too hard to use another account to liquidate your bitcoins to a trusted vendor.  And again where there is a demand for a service such as liquidating bitcoins into Euros or yen or whatever, a supply will  naturally occur.   Its called free market capitalism,  we should all try it sometime.   Why Bother?  Hedging is the answer? Really???  You have to know there are hundreds of people out there sitting on there bitcoins waiting for them to be worth what they paid.  I am one of them.  Not to mention the threat of total market collapse by government intervention, hacking, whatever which we could avoid through this simple implementation and finally have stability. 
Title: Re: Idea to stabilize our market
Post by: johnwholesome on September 07, 2011, 11:34 pm
Mate I am hearing you. Even love the theory........................but

The value of BTC or even any currency can not be stabilized by one single factor. What you suggest would only work if there wasn't such real life hassles as say....uhm......your hookup saying "I have a pound of product NAOW, get it now or leave it"

The problem you're having is simply this, what you suggest would only work in an entirely self-contained system. We can never have that though because the supply is not covered from inside the system but from outside.

I understand what you are getting at, and it might even work if we were exponentially larger than we are with the supply side being covered from inside. But the real life reality is that unless you grow shit yourself, you have a real life hookup for what you vend here, and more than likely your hookup couldn't care less if you have to wait for the "letter with the money". That's the problem.

Yo' G, I gotz them dank ABCs wanna buy? Sure foo, lemme just request a letter with RL currency real quick.

I hear you mate, I'm not saying your idea has no appeal, I'm just saying that from an economical point of view it can't be realized.
Title: Re: Idea to stabilize our market
Post by: chronicpain on September 08, 2011, 12:13 am
I understand what you want to do, If it could be done, I think its a good idea. But, there would have to be trusted exchanges here on SR. Or SR could be the exchanger. I mean, If this was plausible, I would love to bring in 30 or 40k (if I had it, lol) worth of btc at the current value (7.0) and immediately get 10 for it. The biggest problem is there would be too much power in the hands of a few, unless SR were to step in and actually do this. but I think SR's answer to all of this is hedging. Also, I never keep any bitcoins in cold storage. When (if) I need btc's I buy it then send it on over. That way I don't get hurt on the btc fluctuation.

I think the best bet is for buyers to open up an account at mt. gox or wherever, and you can put 1k dollars in your account then buy the btc's when you decide you want to purchase. It only takes a couple hours from purchase of btc to purchase of product on Sr. BTC usually doesn't move too much in that time. So, if the items are hedged, and buyers only purchase the btc when they want something will solve most, if not all, the issues..

I like your outside the box thinking though...
Title: Re: Idea to stabilize our market
Post by: mseller on September 08, 2011, 01:59 pm
+1 CP
We all should learn from mistake to hold btc on cold when we really do not need them. Many buyers bought extra btc but that is nobody fault. Many vendors had 100 of relased btc on sr account or wallet. Now, we know better not to hold btc because is so unstable.
I am a vendor on SR and I do not like giving my name or address to receive a cash in mail.
Title: Re: Idea to stabilize our market
Post by: ThinkPositive on September 15, 2011, 11:38 am
Silkroads future is bound to the future of bitcoins. You cant change that.
What SR rly needs is a huge legal market for BTC to stabilize it.

Best thing one can do is support the idea of free market, free drugs, free opinion and a free self determination.
I trust that decentralized markets are the future and only the internet can provide that.

The hype and crash was necessary. Dont hype it again.. stay true to the idea of BTC.