Silk Road forums
Discussion => Silk Road discussion => Topic started by: iiivision on April 12, 2013, 04:21 am
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I just wanted to say that everyone needs to stop panicking about the bitcoin price crash they are going to go back up and they will be higher than ever, i know this is true because the special k told me so... love yourself, love others, love the road because the road loves you.
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Well, I don't know if BTC will go to new highs or not, but I heartily agree with every single other word in this post!
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Heres my thoughts on it that I just sent in a message to one of my customers, be cautioned that it is pretty disorganized and I didnt have much time to type it (and still dont to edit it) just hits on a couple of points, I might be able to come back later and expand on a couple topics if wanted :)
I personally am not counting on them to go up, although it was very nice being able to go just buy dinner and bring it home (15min adventure, if not less) and seeing that in that time I've made a couple hundred dollars, no good comes out of it, it will make investors who would normally be buying for long term investments not want to have anything to do with btc, it will also make businesses who are debating accepting it shun it for good. the rising was nice and brought in a lot of money, but now the get rich quick investors are all selling off as fast as they can, with no where near as many buyers, which is NOT good at all, because if it just keeps falling, nobody is going to want to buy any and supply and demand will shoot the price way down.
It could very well be the end of SR if bitcoins become entirely worthless, or if bitcoins go into a free fall and theres enough money in escrow that is being hedged, there is a possibility that SR wouldn't be able to cover it. As well as if vendors are not hedging their money, and BTC crashes (like it did in the last couple of days) for any outstanding orders, and orders in transit, us vendors could VERY easily be paying way more than what were getting paid, which would mean vendors no longer have funds to reup, or even worse, causes vendors to decide its time to retire and attempt a massive scam.
What I am hoping for btc is that they steady out, and if they rise or fall, no more than 10% per day, and even that is pretty volatile. it NEEDS to start working as a currency again to be successful.
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It could very well be the end of SR if bitcoins become entirely worthless, or if bitcoins go into a free fall and theres enough money in escrow that is being hedged, there is a possibility that SR wouldn't be able to cover it. As well as if vendors are not hedging their money, and BTC crashes (like it did in the last couple of days) for any outstanding orders, and orders in transit, us vendors could VERY easily be paying way more than what were getting paid, which would mean vendors no longer have funds to reup, or even worse, causes vendors to decide its time to retire and attempt a massive scam.
As long as the listings are in based in USD and are hedged, the price of bitcoins or the fluctuations have no effect on the vendors other than the 4% hedging fee.
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The road is going nowhere... the road is eternal... panic is a tool used by evil men to stunt the growth of love.
Have faith in your bitcoins and support this community... the road is where i reside forever.
Thankyou DPR
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I will use an example with numbers that just make it a whole lot easier to see what could happen.
Lets say btc shoot up to $10,000 and vendors all start hedging everything because a drop would mean a major loss of profits...so lets say SR has 100btc being hedged at a time. worth $1,000,000. now lets say mtgox gets hacked, as with how much btc are currently worth that is a LOT of money that can be made...BTC drop down to $100 as a result, even if its only for a week or so, SR is responsible for paying out $1,000,000 worth of btc, whenever the buyers finalize...so now instead of having to pay back 100btc, they must pay back 10,000btc...which at the beginning of my example would be worth $100,000,000...so unless they had that just sitting around they would not be able to pay back the money...I know I am going to get at least one person saying theres no way it would drop THAT much or those numbers are ridiculous, but that example is fully possible, even if you replace mtgox being hacked with someone hoarding a bunch of btc slowly over time and then dumping them all at once.
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DPR will disappear sooner rather than later.
If they dont find a way to stabilize the coin no one will sell drugs and/or run the site at a loss and the risk of life imprisonment.
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and dont get me wrong here, I would love to see btc going up to $10,000 each, and to see SR be around for the extreme long haul, BUT I am just saying possible effects of the btc doing what it has done recently with its jumping up in price. Us vendors have been seeing a huge decline in sales, due to people holding on to their bitcoins as they double every couple days/hours, or similar. because why buy 1g of (insert drug here) when in 2 hours you'll be able to afford 3g? and on the opposite side (btc price free falling) why would I sell drugs if (even if hedged) when I am actually able to fully cash out I get even less than what I paid for the drugs?
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Yeah well there will always be the greedy people who need to horde but there will also always be the people like me who just want there drugs... i will be buying every week no matter what the bitcoin price is and i am sure many others will too.
As for DPR disappearing i must say i do like magic but i believe the ideals and principals he has started are immortal.
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The btc, just help outside SR, i mean, the prices are fixed, so its the same, its just a way for us to get anon money fast, up or down according to your stock change.
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Yeah well there will always be the greedy people who need to horde but there will also always be the people like me who just want there drugs... i will be buying every week no matter what the bitcoin price is and i am sure many others will too.
As for DPR disappearing i must say i do like magic but i believe the ideals and principals he has started are immortal.
I am with you on this one. I was not investing or anything in bitcoins, I bought them and used them on the good shit as soon as I got them. You know life is good when the hardest part of your day is deciding which drug you want to order today lmao!
Stupid bitcoin hoarding losers I hope every one of those motherfuckers go broke. Instead of being hard working trying to make money as fast and easy as possible without having any idea what you are getting in to.