Silk Road forums

Discussion => Newbie discussion => Topic started by: RunWithScissors on August 01, 2013, 12:57 pm

Title: question about bit coins
Post by: RunWithScissors on August 01, 2013, 12:57 pm
Hey I thought went the bit coin price went up the price of things on sr came down and vice versa? Or thats what they were aiming for am I wrong I would love for someone to explain if they can :)
Title: Re: question about bit coins
Post by: BillWithers on August 01, 2013, 01:29 pm
It's identical to the way any other currency works.

Typically a vendor is going to set an item's price in some currency say EUR. So if that's say 100 Euros, and a bitcoin is worth 100 Euros per SR's exchange rate for example, you see the price as 1 BTC. But then let's say BTC value per SR's exchange rate climbs and a bitcoin is worth 200 Euros. Now you will see the price as .5BTC.

If you want to try to play or time the market, like any currency it works out best when you can buy BTC when it is cheap relative to the currency you're buying it with, and spend it when it is expensive.
Title: Re: question about bit coins
Post by: RunWithScissors on August 02, 2013, 12:39 am
Thanks thats what I thought but it was taking 24 hr's sometimes for changes in prices to occur but adding in time difference and because bit coin is itself it's own currency but controlled by all major currency's depending on where you live as to the pricing of things lol it's hard to time sometimes lol.
Title: Re: question about bit coins
Post by: Micromanage on August 03, 2013, 04:27 am
the more money you put the more you gain when value goes up.
Title: Re: question about bit coins
Post by: mojosagii on August 03, 2013, 04:42 am
SR/Dread Pirate (et al) decided to hedge or basically do a moving average, due to massive fluctuations...actually now...when you buy coins, you get market price, then when they're moved to SR, they command whatever the avg price that's been set on SR....more purchasing power once the coins hit your SR account
Title: Re: question about bit coins
Post by: noshah on August 03, 2013, 04:45 am
The price depends on the exchange rate with your currency the actual price of the goods is static.