Silk Road forums

Discussion => Newbie discussion => Topic started by: twopackshaker on February 21, 2013, 06:35 pm

Title: Question about Bitcoins and the SR
Post by: twopackshaker on February 21, 2013, 06:35 pm
Hello! I am still pretty new to this. Thanks to some very helpful people on the PGP thread, I now consider myself to be PGP literate -- I wanted to get that under my belt first before attempting anything... else.

I am pretty sure most of you already realize this by now, some of you are probably undoubtedly even happy about it, but from a newbie's standpoint (outside looking in) BitCoins have completely exploded in value to the point that buying them is much more difficult. In the past 3 or 4 months, the cost of BitCoin has tripled. In November '12, it was $10/Bitcoin... now it's knocking on $30's door.

I understand that BitCoins as a commodity rise and fall in value over time, and that's perfectly fine. But my question is this: do the prices on the Silk Road also fluctuate in the same way, to match the current value of BitCoin in actual dollars?

The reason I ask, and I don't necessarily think it's necessary to specify which product(s) I am speaking of, is that many/most of the items for sale on the SR haven't fluctuated since the recent BitCoin boom. In other words, certain things that used to be cheaper, are now like ... well, they cost two or three times as much. I don't intend to buy BitCoin or really anything from the road until prices better reflect the street prices. A charge for convenience and safety, fine, but like 2-3x as much? Nope lol

If BitCoin stays more valuable like it currently is, will the prices on the road go down in turn? Or no?
Title: Re: Question about Bitcoins and the SR
Post by: connoisseur on February 21, 2013, 06:49 pm
SR prices are tied to the BTC exchange rate at MtGox.
When BTC rise > pay less BTC
when BTC fall > pay more in BTC.

check the buyers guide for information on escrow hedging which is done by many vendors, but not all.
http://dkn255hz262ypmii.onion/wiki/index.php?title=Buyer%27s_Guide
You will see whether a vendor does so when you place an order.
Title: Re: Question about Bitcoins and the SR
Post by: twopackshaker on February 21, 2013, 06:53 pm
Okay can I ask you something? I have been seeing that word all over the place lately, what do they mean when they say "escrow"? Sorry, if I can get this information from the buyer's guide, I will read it right away.

Thanks for the response homie
Title: Re: Question about Bitcoins and the SR
Post by: connoisseur on February 21, 2013, 07:43 pm
Escrow means that SR holds your BTC until you finalize the transaction.
Title: Re: Question about Bitcoins and the SR
Post by: baconmacguru on February 21, 2013, 08:11 pm
The prices fluctuate with the cost of coin so it really doesnt matter.  Other than that its not really hard to buy coins at whatever market price they may be.
Title: Re: Question about Bitcoins and the SR
Post by: fullofnicethings on February 21, 2013, 08:14 pm
Has the bitcoin always been this volatile? I've only been looking into this for a couple of months within which time the price has more than doubled. If something like that happened to any regular currency people would be throwing themselves out of high block windows (and some buying new jets). The only problem is I can't honestly remember how many BTC anything was when I was originally looking, so thus far if deals are tied to the exchange rate I'm not actually out of pocket as a gram that was $100 is still worth $100. It can't suddenly be worth $200 because the value of the BTC has doubled. But I am screwed if I buy BTC and it suddenly falls in value before I make my purchase.

I guess the moral of the story thus far is unless you're keen on speculating just buy any many BTC as you need for any planned transaction and no more?
Title: Re: Question about Bitcoins and the SR
Post by: twopackshaker on February 21, 2013, 08:45 pm
Has the bitcoin always been this volatile? I've only been looking into this for a couple of months within which time the price has more than doubled. If something like that happened to any regular currency people would be throwing themselves out of high block windows (and some buying new jets). The only problem is I can't honestly remember how many BTC anything was when I was originally looking

Thank you @nicethings,

That is essentially my point. I was looking into joining the Road like... a month or two ago. Looked at the pricings of things, thought it was awesome because of how similar it was to actual pricings on the street. I come back like a month or two later, actually join, start browsing, and suddenly things cost like twice as much.

to @nicethings, I intend to just wait it out. If the prices keep climbing, SR prices need to be adjusted. But if it dives again for whatever reason, you're exactly right in realizing that if you pay current prices... you'd lose half your money.

thanks for all the responses, guys. I don't feel comfortable with the current boom in BC value vs. SR prices. I can even provide a link IF REQUESTED that will show a chart of the pricing boom. I will hold off on that until otherwise said, though, in case linking out is against the rules.

twopack
Title: Re: Question about Bitcoins and the SR
Post by: fullofnicethings on February 21, 2013, 08:58 pm
Has the bitcoin always been this volatile? I've only been looking into this for a couple of months within which time the price has more than doubled. If something like that happened to any regular currency people would be throwing themselves out of high block windows (and some buying new jets). The only problem is I can't honestly remember how many BTC anything was when I was originally looking

Thank you @nicethings,

That is essentially my point. I was looking into joining the Road like... a month or two ago. Looked at the pricings of things, thought it was awesome because of how similar it was to actual pricings on the street. I come back like a month or two later, actually join, start browsing, and suddenly things cost like twice as much.

to @nicethings, I intend to just wait it out. If the prices keep climbing, SR prices need to be adjusted. But if it dives again for whatever reason, you're exactly right in realizing that if you pay current prices... you'd lose half your money.

thanks for all the responses, guys. I don't feel comfortable with the current boom in BC value vs. SR prices. I can even provide a link IF REQUESTED that will show a chart of the pricing boom. I will hold off on that until otherwise said, though, in case linking out is against the rules.

twopack

Welcome mate, thanks for posting the topic in the first place and already having some of my questions answered. Likewise I'm in no great rush to use the Road so I'll do the same for now and just sit tight. Ironically enough it's been the legal side (Bitcoin) that's been by far the most complicated aspect of the whole set up.
Title: Re: Question about Bitcoins and the SR
Post by: baconmacguru on February 21, 2013, 09:14 pm
I personally dont really mind the hike on prices as long as everything goes the way it should (Being able to anonymously purchase something, delivered to your door of reasonable quality without arising undue attention and with respect that the seller takes accounts for profit in my opinion) I pay the premium here just so I dont have spread my business around.  Find a few quality vendors and sticking with them is my goal, I dont intend to send every vendor on SR my shipping address.
Title: Re: Question about Bitcoins and the SR
Post by: BlazedForDays on February 21, 2013, 09:18 pm
Welcome to the road :)

Vendors have the option of setting their prices in BTC or USD. Any vendor worth his salt sets his price in USD, which makes the price automatically change as the value of BTCs updates. I would personally never buy from a vendor who sets his prices in BTC.

From your account settings you can set the currency you see to USD. This makes it so you see your account balance, and prices on products, in USD instead of BTC. This can make things a lot easier if you're not as into BTCs as some people lik myself.

I hope you enjoy the Road, you're taking part in a revolution!

-Blaze
Title: Re: Question about Bitcoins and the SR
Post by: fullofnicethings on February 21, 2013, 09:27 pm
I personally dont really mind the hike on prices as long as everything goes the way it should (Being able to anonymously purchase something, delivered to your door of reasonable quality without arising undue attention and with respect that the seller takes accounts for profit in my opinion) I pay the premium here just so I dont have spread my business around.  Find a few quality vendors and sticking with them is my goal, I dont intend to send every vendor on SR my shipping address.

Of course, the convenience and, in my opinion safety of using SR is worth a premium, just so long as that premium doesn't escalate at the same rate as the value of the Bitcoin. Like I say, I can't remember exactly how much say a gram of coke was when I first started looking, but a gram from BudWorx or Lloydsbrothers is about £130, and I'm sure it wasn't nearly that high when I first started browsing. Perhaps someone can chime in.
Title: Re: Question about Bitcoins and the SR
Post by: twopackshaker on February 21, 2013, 09:33 pm
@nicethings --

yes, the BitCoin aspect seems to be the most complicated... such as, locating veritable places nearby where I can exchange cash for BitCoins, and also worrying about the (currently) rapid trend of BitCoins costing more and more money to purchase. The way things are going, I would be wary as an economist, because it's so volatile right now that somebody is bound to get burned by it. (Especially if you intend to buy the Coin at current value and hold it... I do think it is going to "crash" again. Not sure how much, though)

@baconmcguru --

basically agreed. I even stated in an earlier post that I understand paying a LITTLE bit more for the convenience and safety. BUT, that doesn't mean I understand paying 2 or 3 times above local market price. Would you understand? I certainly don't. But hey, I am a Newbie (it says) lol... what do I know, really.

@Blazed --

thank you! I actually had heard that same bit of advice somewhere before I went ahead and joined. I already set my listings to show in USD automatically, as well as tweak a few other settings. Especially since BTC has really exploded in value over a very short amount of time. It's hard to keep up with. But yeah, I don't know if it's inflation (BTC) or deflation (USD) or what the deal is.
Title: Re: Question about Bitcoins and the SR
Post by: SOUTHPAW on February 22, 2013, 12:39 am
Thanks for all the info. The part about how a vendor list his prices makes sense on why some of the vendors prices change automatically with the increase or decrease of the bitcoin, while others do not. It makes things a lot less complicated when you know the current value of the coin and can do the simple math while shopping on a particular vendor's page.

I have made just over 20 transactions in just under two months, around 2k usd, and have not had one disappointment with product. I have found the vendor's that are on point with getting packages out quickly and the one that can take several days to put it in transit. I understand some are very busy but a week to get it moving seems ridiculous without notification on when or why it is delayed.

My biggest obstacle is figuring out how to use gpg,pgp and such. I have read the threads on here and watched you tubes but it is like Chinese math to me. Any help one to one would be repaid generously. Thank you.
Title: Re: Question about Bitcoins and the SR
Post by: 1byday43 on February 22, 2013, 12:51 am
I try not to stay vested in bitcoins for very long because they do tend to fluctuate in value.  get them and spend them.  or if you like the thrill of gambling play them like the stock market (buying low, selling high).
Title: Re: Question about Bitcoins and the SR
Post by: twopackshaker on February 22, 2013, 03:27 am
I try not to stay vested in bitcoins for very long because they do tend to fluctuate in value.  get them and spend them.  or if you like the thrill of gambling play them like the stock market (buying low, selling high).

For your "investment" in BitCoin to pay off, do you have to actually SELL them later on? For example, I know some people are pissing their pants in joy at the fact that their coins are now worth triple from four months ago. But for them to actually CASH OUT, do they have to actually sell the coins first? Cause if so, then I will never invest in BitCoin like that. Some Doomsdayers will tell you that they have BitCoin as a hedge against currency collapse. My question is, well if there is a major economic disaster, what exactly would you be "cashing out" to? Gold? let me know

twopack

PS

@SOUTHPAW

There is a major thread on PGP in the Newbies forum, as I am sure you know. But if you need one on one help, let me know homie. Cause I just figured that shit out earlier today. peace
Title: Re: Question about Bitcoins and the SR
Post by: vitocyco on February 22, 2013, 03:40 am
you can only assume sellers will begin to ask for less bitcoins as a result of the rise in price. Im completely new to this process myself but after doing seller research and price comparisons, the average value in USD for certain  products appear to stay relatively in the ball park. But like you said, it wouldnt make sense to pay overly high prices via bitcoins if sellers arent fluctuating asking prices to appease to the rise in bitcoin value.
Title: Re: Question about Bitcoins and the SR
Post by: anabri on February 22, 2013, 04:13 am
"Vendors have the option of setting their prices in BTC or USD. Any vendor worth his salt sets his price in USD, which makes the price automatically change as the value of BTCs updates. I would personally never buy from a vendor who sets his prices in BTC.

From your account settings you can set the currency you see to USD. This makes it so you see your account balance, and prices on products, in USD instead of BTC. This can make things a lot easier if you're not as into BTCs as some people lik myself.

I hope you enjoy the Road, you're taking part in a revolution!

-Blaze"
HOLY SHIT BATMAN!! Do you have ANY idea how much you just made my life SOOOO much easier? I have been racking my freaking brain over this whole stupid bitcoin thing-had no idea you could change the settings to USD-that's a HUGE help... and are you telling me you don't *HAVE* to use bitcoins to pay vendors? I can use an easier way??? PLEASE say yes cause as poor Princess High, and Modzi, and RxKing will tell you I have been pelting them with questions and reading to the point of my head almost exploding trying to figure out the whole bitcoin thing. I thought I had a basic understanding of what to do until today-now I'm blown again. Princess has been desperately trying to help me but seems I am the only one in this world who simply cannot comprehend the whole bitcoin thing. I have a block chain wallet AND a bitcoin wallet on my computer. I know how to use bitinstant-but there I am stuck. I *thought* the process was to use bitinstant to deposit funds into say Mt. Gox (which I opened an account with), then in Mt. Gox buy bitcoins-then transfer them to my wallet on my computer or the block chain wallet and then transfer them to the vendor when my order arrives-however I am told Mt. Gox is not the safest way to go and Princess tried to explain the steps- Bitinstant-blockchain wallet-blockchain mixer-silk road wallet.... God bless her but I am clueless as to what the block chain mixer is and I cannot for the life of me find where to get a SR wallet nor do I understand why I need one if I already have a block chain wallet AND a wallet thru bitcoin on my computer.... UGH see what I'm going thru here? Am I REALLY completely stupid here? This is like learning chemistry to me-I am trying so hard. It was hard enough just to figure out the exchange rate of a bitcoin to a USD... *Head falls on desk* All of you admins are amazing and kind and very helpful and patient with me so far and I really appreciate it. I refuse to allow myself to do anything until I understand what I'm doing 1st ya feel me? I want to make my first purchase tomorrow-was planning on making a deposit tomorrow-but lost from there =( Please be easy on me when replying. I really am trying. I'm not trying to annoy anyone. I know how frustrating it is for people who already know how to do all this to have to deal with newbies learning. Thanks all for any *easy in anabri terms* help you can give me on this... I finally got a grasp of the stupid PGP thing thank God-that was a whole other challenge I spent the entire day on yesterday. CRAZY
Title: Re: Question about Bitcoins and the SR
Post by: FieryDahlia on February 22, 2013, 07:05 am
I was wondering this same thing and kicking myself for not trying this shit out in December..
Title: Re: Question about Bitcoins and the SR
Post by: twopackshaker on February 22, 2013, 05:33 pm
@fierydahlia Yeah, well... for most BtC fans, the rising value of the coin is a great thing. However, I believe the SR is more responsible for the rising value of coins than anyone over at BitcoinTalk would care to admit. But if sellers don't accomodate for these kinds of market fluctuations, then sales will slow down until prices come back to more reasonable levels. That's not to say you can't find some good deals on there right now... it's just not across the board yet.

Or, maybe prices are no more expensive than they ever were, and shit's just really expensive by default lol :P... certain shit, I should say, anyway. Cause some people are saying the prices will adjust themselves automatically if you set it to "USD"... but that doesn't mean the seller's actual price has changed though. It just goes up as the BtC goes up; i.e more expensive.
Title: Re: Question about Bitcoins and the SR
Post by: onetwothree on February 22, 2013, 06:54 pm
I try not to stay vested in bitcoins for very long because they do tend to fluctuate in value.  get them and spend them.  or if you like the thrill of gambling play them like the stock market (buying low, selling high).

For your "investment" in BitCoin to pay off, do you have to actually SELL them later on? For example, I know some people are pissing their pants in joy at the fact that their coins are now worth triple from four months ago. But for them to actually CASH OUT, do they have to actually sell the coins first? Cause if so, then I will never invest in BitCoin like that. Some Doomsdayers will tell you that they have BitCoin as a hedge against currency collapse. My question is, well if there is a major economic disaster, what exactly would you be "cashing out" to? Gold? let me know

Not exactly. Bitcoin is a currency. If you exchanged USD for Euros right now and then the dollar collapsed, you wouldn't have to "cash out" your Euros. Their values are independent. It's not like a stock where it is all paper profits until you "cash out". You can't go somewhere and buy something and pay with 2 shares of Amazon. There ARE places you can go to buy something with 2 Bitcoins ( like, well, here for example =] ). However, since Bitcoins are virtual and people have a hard time grasping that concept and because the number of places that accept payment in Bitcoins is limited, to many people it doesn't very much feel like a currency. The fluctuations in the currency can also be pretty volatile, which is not usually present in more traditional currencies. Can you imagine if that 10$ Pizza in December was now 30$ and in two months was 5$ and in six months 50$?

HOLY SHIT BATMAN!! Do you have ANY idea how much you just made my life SOOOO much easier? I have been racking my freaking brain over this whole stupid bitcoin thing-had no idea you could change the settings to USD-that's a HUGE help... and are you telling me you don't *HAVE* to use bitcoins to pay vendors? I can use an easier way???

I don't want to speak for him, but no, that is most definitely not what he's telling you. It's just there so it's easier for people to understand pricing. If I tell you a pizza is 10$, you'd be okay with that. If I told you it was 50$, you'd think it was insane. Now if I tell you a pizza is 1000 yen, is that a good deal? 5 yen? 25000 yen? 85 rubles? I have no idea and you probably don't either. Most are just as clueless with Bitcoin, so you can display prices in USD since most people have a more accurate basis of what the hell that actually means.

however I am told Mt. Gox is not the safest way to go and Princess tried to explain the steps- Bitinstant-blockchain wallet-blockchain mixer-silk road wallet.... God bless her but I am clueless as to what the block chain mixer is and I cannot for the life of me find where to get a SR wallet nor do I understand why I need one if I already have a block chain wallet AND a wallet thru bitcoin on my computer.... UGH see what I'm going thru here?

The only purpose (albeit an extremely important one) of the mixer is to 'mix' your money to sever any ties from the original wallet, which can usually be tied to a real-life identity (for beginners anyway). If you order a pizza and give the driver a $20, the driver definitively knows that YOU just paid $20 for a pizza. If you were to leave the $20 taped to the door instead, you could have paid for it, your dog could have paid for it, your neighbor, a ghost, etc etc. There's no way to tie that $20 to you(r identity). That's not exactly a 100% analogous situation, but it should illustrate the idea.

The reason that Mt. Gox is not safe is because it's REALLY safe. They keep very extensive records, have strong tracking like banks do, often have verified identification for most accounts, is difficult to use anonymously, etc. All WONDERFUL things if you're using Bitcoin to pay for services or investing in the currency or whatever else. Not so much if you're buying drugs illegally through the internet.

I cannot for the life of me find where to get a SR wallet nor do I understand why I need one if I already have a block chain wallet AND a wallet thru bitcoin on my computer....

Your SR 'wallet' is found on your Account page. It's not really a 'wallet' in the traditional sense but allows you to see your current balance.

You don't *have* to have a blockchain wallet and a wallet on your computer, but it's a best practice. Do you have 100% of your USD in the same place? No, you probably have a bank account with the majority of your funds, a billfold with some spending money, and maybe a safe in your bedroom. Having a wallet on your computer (encrypted, offline, etc) is the equivalent of the safe. The blockchain wallet is the equivalent of a billfold - don't keep more in there than you're willing to lose should blockchain get hacked or something. And there isn't really an equivalent for the bank since this is an entirely virtual decentralized currency.
Title: Re: Question about Bitcoins and the SR
Post by: twopackshaker on February 22, 2013, 07:05 pm
@onetwothree

Thank you for such a thorough response... Basically, that's what I am observing as the value of BitCoin skyrockets like it currently is (it actually just passed the $30 mark/BtC, and still rising). I like the Pizza analogy. About a month or two ago, when coins were like... $15/each, the prices were definitely closer to actual "street" prices. Now, it kind of seems like not everyone has adjusted their own pricing to accomodate for what is basically ... inflation? Is that the right term?

On an unrelated term, how do you quote multiple people? Have multiple tabs or something? lol --
Title: Re: Question about Bitcoins and the SR
Post by: onetwothree on February 22, 2013, 07:34 pm
@onetwothree

Thank you for such a thorough response... Basically, that's what I am observing as the value of BitCoin skyrockets like it currently is (it actually just passed the $30 mark/BtC, and still rising). I like the Pizza analogy. About a month or two ago, when coins were like... $15/each, the prices were definitely closer to actual "street" prices. Now, it kind of seems like not everyone has adjusted their own pricing to accomodate for what is basically ... inflation? Is that the right term?

I don't think inflation would be the right term, but I don't know what would be. But I think most people would know what you meant if you used that term.

As someone else mentioned, most sellers set their prices in USD. If something is $100, it stays $100 (plus or minus 1% or so to account for conversion rounding). The day you buy it, that may be 10 bitcoins, 5 bitcoins, whatever, but the equivalent of about $100. If a seller has their prices set in BTC, then yes, you'll get half as much whatever now than you would have in December unless the seller is constantly updating their pricing. For me, that's a red flag... either a) they understand Bitcoin volatility and are letting their prices rise to unfair amounts hoping buyers with less understanding will purchase not really knowing how much USD they're spending or b) they don't understand Bitcoin volatility, which means they may not entirely grasp all the steps in other aspects (PGP, encryption, shipping, etc), which could in turn put both seller and buyer at risk. It doesn't mean they can't be a good vendor, but it's just one thing I stay away from. We're behind computers, but these are real life crimes being committed with real life consequences. That can be lost on new members who get big eyes and view SR as sort of a fool-proof fantasy anonymous candy-shop of drugs.

On an unrelated term, how do you quote multiple people? Have multiple tabs or something? lol --

Yeah, haven't found a way to multi-quote without clicking 'quote' into a new tab and then copy/pasting it. Most people here use the Tor Browser with NoScript, so a javascript Multi-Quote would look 'broken' unless you enabled scripts, so my guess is there is no multi-quote here just to avoid the hassle.
Title: Re: Question about Bitcoins and the SR
Post by: codiedog on February 22, 2013, 07:39 pm
 8)
Title: Re: Question about Bitcoins and the SR
Post by: twopackshaker on February 22, 2013, 08:19 pm
As someone else mentioned, most sellers set their prices in USD. If something is $100, it stays $100 (plus or minus 1% or so to account for conversion rounding). The day you buy it, that may be 10 bitcoins, 5 bitcoins, whatever, but the equivalent of about $100. If a seller has their prices set in BTC, then yes, you'll get half as much whatever now than you would have in December unless the seller is constantly updating their pricing. For me, that's a red flag... either a) they understand Bitcoin volatility and are letting their prices rise to unfair amounts hoping buyers with less understanding will purchase not really knowing how much USD they're spending or b) they don't understand Bitcoin volatility, which means they may not entirely grasp all the steps in other aspects (PGP, encryption, shipping, etc), which could in turn put both seller and buyer at risk. It doesn't mean they can't be a good vendor, but it's just one thing I stay away from. We're behind computers, but these are real life crimes being committed with real life consequences. That can be lost on new members who get big eyes and view SR as sort of a fool-proof fantasy anonymous candy-shop of drugs.

Thanks, man, that basically answers my primary question. That is a good means of protection against the ever-changing price/value of BitCoin. I have already changed my settings on the road to "display prices in USD" -- is that the same thing as what you are saying? Or do I need to do something extra in the settings to only show sellers who list their prices in USD to begin with?

As for you, @codiedog, if you ever wear sunglasses in my thread again... just kidding lol
Title: Re: Question about Bitcoins and the SR
Post by: onetwothree on February 22, 2013, 08:52 pm
I have already changed my settings on the road to "display prices in USD" -- is that the same thing as what you are saying? Or do I need to do something extra in the settings to only show sellers who list their prices in USD to begin with?

That's all you need to do to have the prices shown in USD. I don't think there's a way to know how sellers list their prices other than seeing if the price changes constantly/noticeably/proportional to bitcoin over the course of a few days.
Title: Re: Question about Bitcoins and the SR
Post by: MainStay on February 23, 2013, 12:55 am
Also, remember that a vendor doesn't need a reason to change prices, even though he may have a couple reasons: better product, rising shipping costs, maybe the first few weeks was an intro price to get good feedback. Basically, you need to really research your vendors and get a feel for how they do business. Like SOUTHPAW here, who has spent 2k  but still hasn't figured out PGP,  he is sending his unencrypted address out to known criminals, who may or may not handle that information discretely. Go slow and be careful, this place (or something much like it) will be around for as long as the internet is here, which is forever I guess. :o
Title: Re: Question about Bitcoins and the SR
Post by: anabri on February 23, 2013, 04:27 am
onetwothree-THANK YOU =) and I am happy to say that I was completely successful in dealing with the entire process today! It has LITERALLY taken me ALL day and still working on it now though lol-due to A: I had to ride the bus to a couple different places and waiting on buses can be very time consuming... THEN when I got home I started the transfer process and had no idea it takes a min of 6 hours for it to transfer from Bitcoin Fog to SR wallet! MY God-and not only that I freaked myself out thinking I somehow lost the funds twice during transfers-long story... AND had no idea that not only does it take a min of 6 hours but the transfer is not all in one lump sum at one time-it's several lump sums over the 6 hours so I was needless to say freaking out when I saw the first lump sum thinking Bitcoin fog had eaten most of my money in fees or something-BOY did I lay into them-then I felt really bad and apologized to them when I saw the next lump sum and figured out what was going on. Haven't got to officially do my first order yet because I'm still waiting the last of the funds to reach my account. This has been a hell of a learning process! I began all this I believe Monday? Now knowing all of this I feel incredibly accomplished and proud of myself lol. I did not think I had a chance in the world to understand any of it. I felt so stupid! I felt like I was dropped off at the stock market exchange for the first time lol. If I didn't have so many of you here helping me oh Lord I don't know what I would have been doing at this point. Probably would have given up by now =( So anyhoo after that long-winded novel I thank you! I thank everyone who has helped me. I know I'm still a newbie but I feel like a Juniorette newbie now lol
Title: Re: Question about Bitcoins and the SR
Post by: RxKing on February 23, 2013, 02:35 pm
I try not to stay vested in bitcoins for very long because they do tend to fluctuate in value.  get them and spend them.  or if you like the thrill of gambling play them like the stock market (buying low, selling high).

For your "investment" in BitCoin to pay off, do you have to actually SELL them later on? For example, I know some people are pissing their pants in joy at the fact that their coins are now worth triple from four months ago. But for them to actually CASH OUT, do they have to actually sell the coins first? Cause if so, then I will never invest in BitCoin like that. Some Doomsdayers will tell you that they have BitCoin as a hedge against currency collapse. My question is, well if there is a major economic disaster, what exactly would you be "cashing out" to? Gold? let me know

Not exactly. Bitcoin is a currency. If you exchanged USD for Euros right now and then the dollar collapsed, you wouldn't have to "cash out" your Euros. Their values are independent. It's not like a stock where it is all paper profits until you "cash out". You can't go somewhere and buy something and pay with 2 shares of Amazon. There ARE places you can go to buy something with 2 Bitcoins ( like, well, here for example =] ). However, since Bitcoins are virtual and people have a hard time grasping that concept and because the number of places that accept payment in Bitcoins is limited, to many people it doesn't very much feel like a currency. The fluctuations in the currency can also be pretty volatile, which is not usually present in more traditional currencies. Can you imagine if that 10$ Pizza in December was now 30$ and in two months was 5$ and in six months 50$?

HOLY SHIT BATMAN!! Do you have ANY idea how much you just made my life SOOOO much easier? I have been racking my freaking brain over this whole stupid bitcoin thing-had no idea you could change the settings to USD-that's a HUGE help... and are you telling me you don't *HAVE* to use bitcoins to pay vendors? I can use an easier way???

I don't want to speak for him, but no, that is most definitely not what he's telling you. It's just there so it's easier for people to understand pricing. If I tell you a pizza is 10$, you'd be okay with that. If I told you it was 50$, you'd think it was insane. Now if I tell you a pizza is 1000 yen, is that a good deal? 5 yen? 25000 yen? 85 rubles? I have no idea and you probably don't either. Most are just as clueless with Bitcoin, so you can display prices in USD since most people have a more accurate basis of what the hell that actually means.

however I am told Mt. Gox is not the safest way to go and Princess tried to explain the steps- Bitinstant-blockchain wallet-blockchain mixer-silk road wallet.... God bless her but I am clueless as to what the block chain mixer is and I cannot for the life of me find where to get a SR wallet nor do I understand why I need one if I already have a block chain wallet AND a wallet thru bitcoin on my computer.... UGH see what I'm going thru here?

The only purpose (albeit an extremely important one) of the mixer is to 'mix' your money to sever any ties from the original wallet, which can usually be tied to a real-life identity (for beginners anyway). If you order a pizza and give the driver a $20, the driver definitively knows that YOU just paid $20 for a pizza. If you were to leave the $20 taped to the door instead, you could have paid for it, your dog could have paid for it, your neighbor, a ghost, etc etc. There's no way to tie that $20 to you(r identity). That's not exactly a 100% analogous situation, but it should illustrate the idea.

The reason that Mt. Gox is not safe is because it's REALLY safe. They keep very extensive records, have strong tracking like banks do, often have verified identification for most accounts, is difficult to use anonymously, etc. All WONDERFUL things if you're using Bitcoin to pay for services or investing in the currency or whatever else. Not so much if you're buying drugs illegally through the internet.

I cannot for the life of me find where to get a SR wallet nor do I understand why I need one if I already have a block chain wallet AND a wallet thru bitcoin on my computer....

Your SR 'wallet' is found on your Account page. It's not really a 'wallet' in the traditional sense but allows you to see your current balance.

You don't *have* to have a blockchain wallet and a wallet on your computer, but it's a best practice. Do you have 100% of your USD in the same place? No, you probably have a bank account with the majority of your funds, a billfold with some spending money, and maybe a safe in your bedroom. Having a wallet on your computer (encrypted, offline, etc) is the equivalent of the safe. The blockchain wallet is the equivalent of a billfold - don't keep more in there than you're willing to lose shouldblock chain get hacked or something. And there isn't really an equivalent for the bank since this is an entirely virtual decentralized currency.


I think you missed the point and gave bad information here------

I don't want to speak for him, but no, that is most definitely not what he's telling you. It's just there so it's easier for people to understand pricing. If I tell you a pizza is 10$, you'd be okay with that. If I told you it was 50$, you'd think it was insane. Now if I tell you a pizza is 1000 yen, is that a good deal? 5 yen? 25000 yen? 85 rubles? I have no idea and you probably don't either. Most are just as clueless with Bitcoin, so you can display prices in USD since most people have a more accurate basis of what the hell that actually means.


Vendors price there item in US DOLLARS so that it makes no difference what the btc it trading for. THATS IT. Other wise if I listed a pill for 1btc then depending on the day that pill could cost you $5 or $30. So instead EVERY vendor prices their products to the dollar. And in doing this you will always pay the same amount of cash for the item.  It is actually very simple. I am shocked(not really though as there is so much misinformation in these forums by people that think they know and they do not know shit) at how many people thing that that with the btc going UP in value that they are paying more for their drugs.... the price of the btc in no way affects the price you pay for your drugs. Since we all price them in dollars. So as long as you buy your drugs as soon as you buy your coins then you are fine..but in the last 30 days you could have waited and the more you waited the "less you pay" as the btc has doubled in that time.


Also there is absolutely NO REASON to "wash" your coins or any other thing at all. Just send the coins to your Sr account and use them!! There is NO risk WHAT SO EVER. Anyone that is doing anything other then sending their coins to SR is wasting time and money for no reason. You do not need to use a mixer or anything else.

I have read through this thread and I can't believe how much bad information there is in here about the bit coin and using it for buying on silk road. For 99% of you the only reason you are getting it is because that is all we vendors take. So all you need to know is that the prices for goods are set in dollar amounts. And you will ALWAYS pay the same price for goods no matter what the btc does. It makes no difference if a btc is worth $1 OR $100. All that matters is that you use your coins as soon as you get them so that in case from the time you purchase your coins to the time you purchase goods on Silk Road if the btc is going down then you will need MORE btc....if it is going up...you will need less. The good thing is SR uses a 24  hour average of MT.GOX so you can get the app that tells you the current price of the btc and you will then know what the SR price will be in the next 24hrs. There is a free app for this so that you can always see the current exchange rate for btc. And unless you are buying your coins from me...then you are paying some sort of premium for the btc usually less then 10%. And that is just the price of doing business. :) So sit back and relax and realize that 95% of the "information" on the forums is wrong. And that you do not need to know most of it anyways...as 99% of you are going to get btc in your account...then use them! So no need to worry about the btc going up and down.

Title: Re: Question about Bitcoins and the SR
Post by: onetwothree on February 23, 2013, 04:19 pm
I think you missed the point and gave bad information here------

Vendors price there item in US DOLLARS so that it makes no difference what the btc it trading for. THATS IT. Other wise if I listed a pill for 1btc then depending on the day that pill could cost you $5 or $30.

Yes, it very well could, depending on how the vendor lists the pricing...

Quote from: SRWiki
http://dkn255hz262ypmii.onion/wiki/index.php?title=Seller%27s_Guide#Pricing
You have two options when pricing your listings. They can be priced in constant Bitcoins, or constant US Dollars. If you choose to peg your listings to the dollar, your prices will change dynamically in accordance with the exchange rate between the two currencies. When the Bitcoin appreciates, your prices will fall. When it depreciates, they will rise, so no matter what, you will get the same dollar value for your item. We recommend that you peg your prices to the dollar.


Also there is absolutely NO REASON to "wash" your coins or any other thing at all. Just send the coins to your Sr account and use them!! There is NO risk WHAT SO EVER. Anyone that is doing anything other then sending their coins to SR is wasting time and money for no reason. You do not need to use a mixer or anything else.

This puts 100% faith into the SR Tumbler. Many prefer the security of the high-reserves blockchain opensource widely used mixer. And many of us have our real identities easily tied to the coins when we first receive them. If you don't, then it's less of a concern.

I have read through this thread and I can't believe how much bad information there is in here about the bit coin and using it for buying on silk road. For 99% of you the only reason you are getting it is because that is all we vendors take. So all you need to know is that the prices for goods are set in dollar amounts. And you will ALWAYS pay the same price for goods no matter what the btc does.

Same as above

  It makes no difference if a btc is worth $1 OR $100. All that matters is that you use your coins as soon as you get them so that in case from the time you purchase your coins to the time you purchase goods on Silk Road if the btc is going down then you will need MORE btc....if it is going up...you will need less.

So in other words it makes a HUGE difference whether a bitcoin is worth $1 or $100.

So sit back and relax and realize that 95% of the "information" on the forums is wrong.

I know, right?!?
Title: Re: Question about Bitcoins and the SR
Post by: anabri on February 23, 2013, 06:23 pm
=) @ the King-one of my teacher hero's!
Title: Re: Question about Bitcoins and the SR
Post by: RxKing on February 24, 2013, 06:06 am
@onetwothree

You clearly have no fucking clue what you are talking about. This is the LAST place someone that has been here for less then 4 weeks should be giving advice like you know what you are talking about. I have been a vendor here for 11 months and a member since the 4th week of SR's opening..so clearly I know what I am talking about!! I am giving facts and advice to help the new people with BTC...and you are giving typical paranoid, weed talking "advice/your opinion. And it is bad advice at that.

First EVERY vendor lists there prices to the dollar. So in makes no difference what the BTC is trading for. NONE. Will only matter if .....from the time you buy your btc  and get it into your account then you go to make a purchase and the btc might have gone down a few cents and you could not have enough  btc to buy the item....but this is easily fixed by always having a few more dollars then you need as to take care of this..as it is rarely anything more then a few cents the btc has dropped in that short period of time.

Also when sending coins into SR ...you tell me why you would ever need to use a tumbler for your coins? How is that in ANYWAY going to help you?

And instead of just giving non answers.... give an example as to what you are saying..



And NO..... it makes no difference if a BTC is worth $1 or $100...as long as you paid for the btc and use it right away(though in the last 8 weeks all it has done is rise so if you waited you "made" money).. These people are buying coins to buy drugs..that's it..so they will be buying them and using them..they do not have to worry about anything else. They sure as fuck don't need to waste time or money on a tumbler service or anything like that. Also your vague answers are not helping them. And you sound like someone that doe not even purchase off SR and is paranoid as shit. And to say something like---

This puts 100% faith into the SR Tumbler. Many prefer the security of the high-reserves blockchain opensource widely used mixer. And many of us have our real identities easily tied to the coins when we first receive them. If you don't, then it's less of a concern.

Why would you not trust SR's tumbler? You trust the site? No one is looking where the coins you purchased are going to.....How does that hurt you..and who would have that info anyways..this is pure paranoia talk and will not apply to 99.999% of buyers on here.

And to use the word "many" is misleading...if by many you mean 15 out of thousands...ok..:)