Silk Road forums

Discussion => Security => Topic started by: chronicpain on October 08, 2011, 04:46 pm

Title: The reason bitcoin is diving!!!!
Post by: chronicpain on October 08, 2011, 04:46 pm
I already posted this, but for some reason, I can't find it anywhere....I also did a search and didnt find any posts regarding this, so if its already been posted, please forgive  me..

Anyway, Bitcoin7 was hacked! Here we go again.. Not only were they hacked, but all groups associated with them that used the same servers were hacked. They lost almost all their money.

I signed up at bitcoin7 but never used them. I cant remember what password I uised, but i never use the same password for anything to do with bitcoins or SR. But just to be safe, Im changing my SR  password, just to be safe..

As I predicted yesterday, when the bitcoin was at 4.50 cents, I posted to sell or buy what you can with your bitcoins because its going to nose dive. And its dropped another 60 cents then...So, i still would pull out or just hold  on.

Whoever stole the bitcoins are just going  to flood the market and get rid of them, they dont care what they do to the market, they just want as much money as they can get..

Keep an eye on this, this will be a great time to buy if you can get close to the bottom. but, the only problem is that more faith will be lost in the bitcoin and who knows if the value will recover...

I see it going to at least in the 2 range.. Im just speculating.. dont do anything because of what I say.. do whatever on your own free will. It might even go lower.. it will depend on how much was stolen.. if it was just tens of thousands then the worst is probably over, if its a lot more, its just begun...
Title: Re: The reason bitcoin is diving!!!!
Post by: 77Tjm on October 08, 2011, 06:31 pm
Hope it stays low until Monday, definitely want to grab some BTC on the cheap while everyone's panties are in a bunch.
Title: Re: The reason bitcoin is diving!!!!
Post by: chronicpain on October 08, 2011, 08:05 pm
I still think its a great time to buy. Even if it goes down further, keep buying. Then your average cost will be quite low.. I think you will see a lot of bitcoin investors doing this. I wish I had the funds to do this. Ill do it as much as I can afford, but this is a great time to invest... I wouldn't go crazy, but a few hundred, why not?
Title: Re: The reason bitcoin is diving!!!!
Post by: mito on October 08, 2011, 09:12 pm
What difference does it make to us if all prices are automatically adjusted according to the rate between bitcoins and dollars?

Title: Re: The reason bitcoin is diving!!!!
Post by: chronicpain on October 08, 2011, 10:30 pm
Mito, theres a big difference. If the bitcoin is at 3.90 and I buy 1k worth and 2 days later it goes to 5, Ive made a lot of money..I lose a lot if it goes to 1 dollar. it has nothing to do with what the bitcoin is attached to.  you are just looking at is as a buyer. but if your a seller and you didnt use the hedging option and the bticoin dives, the buyer can be screwed. that is why you see a lot of sellers cancel orders when the bitcoin drops.

It would take too long to explain why its good to buy the bitcoin when its low, but do some research on Forex. That will give you a good idea. but what you are talking about has nothing to do with what Im talking about...
Title: Re: The reason bitcoin is diving!!!!
Post by: mito on October 08, 2011, 11:22 pm
Mito, theres a big difference. If the bitcoin is at 3.90 and I buy 1k worth and 2 days later it goes to 5, Ive made a lot of money..I lose a lot if it goes to 1 dollar. it has nothing to do with what the bitcoin is attached to. 

ok, I got the picture.    Sellers are vulnerable, they sell something today and if bitcoin drops too much they'll lose money the moment the hedge is finalized.

However, if I buy something today and if bitcoin drops or goes up wildly, I have nothing to lose or gain, I'm getting the product I paid for, and that doesn't change.  One gram is one gram and I'm not reselling it.

Right?
Title: Re: The reason bitcoin is diving!!!!
Post by: chronicpain on October 09, 2011, 12:15 am
As a buyer, you are safe (unless the bitcoin skyrockets then you will be kicking yourself and the vendor will reap the benefits)

As long as the vendor hedges, it really doesn't matter what the bitcoin does. And yes, you are right. Once you have purchased the product, you are locked into that price. But, if the bitcoin drops, and the vendor didn't hedge, you will see a lot of them cancel the order, they dont want to take the loss. I have never done that, most reputable vendors won't do that, but some small time vendors have no choice. They cant take the loss ( i believe if they cant handle the swings, they shouldn't be in the biz)

But, we are really talking about 2 separate things..
Title: Re: The reason bitcoin is diving!!!!
Post by: Paperchasing on October 09, 2011, 05:42 am
I see the downward spiral has reversed .. whew!  It was just at 4.33 on the SR indicator at the bottom of the page a few minutes ago.

Paperchasing
Title: Re: The reason bitcoin is diving!!!!
Post by: Cgault on October 09, 2011, 03:15 pm
here is the question, and I have a personal stake as I was moving BTC to $$$ during the dip and back - ultimately I lost 10%-

Is there a market? When a bad thing happens, as it does in stock and currency markets, are there buyers on the other side. Presently, for a retail SR buyer, it is HASSLE to get funds into SR through the exchanges like Gox. bank, Dwolla, Gox. Green Dot miney card swaps are fraught with danger even when the exchanger is honest, there are all kinds of things that can go wrong. as I said, the standard exchange chain is slow.....

so, when you want to get in fast, out fast, what do you do, you see a .50 cent dip.? what do you do? the best thing is to look at the long term history of BTC / $ and and the SR hedging notes, and you will either see a thin, volatile market that cant rebound, or a market that can rebound, no matter what the hack. In the standard markets, what is flash trading and naked shorting anyhow????     Hacks!