Silk Road forums

Discussion => Newbie discussion => Topic started by: pakaibuang on April 03, 2013, 11:39 am

Title: Hedge buyer account
Post by: pakaibuang on April 03, 2013, 11:39 am
I think SR should give option for buyer to hedge their account to usd. I'm scared shitless that a few week ahead, bitcoin value will depreciate and we will see increase in price in bitcoin for stuff sells here. I cant buy any shit in SR now because of several reason.  anyone think this is a good idea?
Title: Re: Hedge buyer account
Post by: Propylhexadrine on April 03, 2013, 11:47 am
I would love for that to happen. Unfortunately, it probably exposes SR capital to too much volatility.
Title: Re: Hedge buyer account
Post by: pakaibuang on April 03, 2013, 11:49 am
care to explain in detail?
Title: Re: Hedge buyer account
Post by: smokecrack on April 03, 2013, 11:56 am
care to explain in detail?
only a child could not understand that. are you six years old?
silk road would lose a lot of money. you deposit ONE BITCOIN into your silk road account when it was $50. if bitcoin goes to $100 then you only have a half a bitcoin now! how the fuck would you expect to have $100 still? where would the second bitcoin come from?  DPR's asshole?  no it would come from HIS POCKET! i broke it down into baby turns for you young child. now dont be late for school, you need it.
Title: Re: Hedge buyer account
Post by: pakaibuang on April 03, 2013, 12:18 pm
what i mean is, if i transfer 50usd worth of bitcoin into SR. it will stay 50 usd. and i like that to happen because it is more stable for the buyer.  why is that bad for SR capital?
Title: Re: Hedge buyer account
Post by: Propylhexadrine on April 03, 2013, 12:29 pm
If BTC crashes, then SR would have to provide its users with more BitCoins in order to maintain the value of their accounts. This would open up their capital reserves to a large amount of volatility. I mean, the compensation for lost value has to come from somewhere. If SR hedges its buyers accounts, then SR has to pay for it when a crash comes. The only way to really make it worthwhile would be to charge a very large premium for the service.
Title: Re: Hedge buyer account
Post by: enigma6667 on April 03, 2013, 03:34 pm
I don't understand the rants in reply to a reasonable question ...
My understanding of the question is why not allow users to have a USD balance as well as a BTC balance.
Give users the option of converting BTC to USD at whatever the prevailing rate is, in a similar fashion to that used by hedged orders.

If this can be done for vendors why not for buyers ?

In fact this sounds like a decent business opportunity for DPR !
Title: Re: Hedge buyer account
Post by: look @ my nuts on April 03, 2013, 03:36 pm
hi
Title: Re: Hedge buyer account
Post by: smokecrack on April 03, 2013, 03:40 pm
I don't understand the rants in reply to a reasonable question ...
My understanding of the question is why not allow users to have a USD balance as well as a BTC balance.
Give users the option of converting BTC to USD at whatever the prevailing rate is, in a similar fashion to that used by hedged orders.

If this can be done for vendors why not for buyers ?

In fact this sounds like a decent business opportunity for DPR !
its a stupid question with a simple answer that you cannot grasp.

vendors have BITCONIS not USD.  the usd value fluctuate.  only the LISTINGS are hedged. 

brains wernt strong in your family's genes
Title: Re: Hedge buyer account
Post by: enigma6667 on April 03, 2013, 04:07 pm
Smokecrack ... Nothing wrong with my genes

When I make a hedged purchase my bit coins ARE converted to USD ... Nothing to do with vendors having BTC
Which is why a refund after a failed transaction may result in fewer BTC being returned than the original amount.
SR do not have a BTC exposure and do in fact charge a commission which is borne by the vendor on successful completion.

Please feel free to correct me ... No need to cast aspersions on my genetic background unless you are feeling really insecure about yourself !
Title: Re: Hedge buyer account
Post by: zombai spy lab on April 03, 2013, 07:54 pm
SR either pays or takes the btc value from it's tumbler.