Silk Road forums
Discussion => Off topic => Topic started by: sofish89 on April 25, 2013, 03:30 pm
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I placed an order on fri nite when bitcoins were alot lower. Because of the outages my vendor probably hasnt been able to log on much, he contacted me today and apologized and said hes away today and tommoorow and wont be able to ship it out til saturday or monday (if i dont mind waiting). He told me that if i cant wait that long i can cancel the order if i want.
So my question is that since the bitcoins went up 50% since then, will I get the amt of bitcoins i spent back (and have more dollars to spend elsewhere) or will i get back the amt in USD?
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You get the same amount in bitcoins that were put in escrow for the order.
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Does it matter if he did the hedging thing or the unhedging thing? and if yes, how do i check if its hedged?
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Umm, unfortunately, my knowledge about that is limited. Maybe someone else can answer that definitively.
But I'm inclined to say that it doesn't matter.
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Does it matter if he did the hedging thing or the unhedging thing? and if yes, how do i check if its hedged?
Hedging vs. Unhedging is actually the determinant factor. The vendor determines it and you wont notice it until u add something to the cart.
If it is "Hedged"... you are guaranteed to either pay the USD amount at purchase when u finalize, or will receive the dollar amount back in bitcoins at their rate at the time of the refund. This makes it safer from Vendor's getting burned as the will get the value no matter what in cash. For the buyer, it's also , personally, I believe a little safer and better If you find a hedged one because.. if the price is $100USD/coin in the morning and you have 2 BTC, but you hold off to the afternoon and buy and it 160$ USD/ coin .. instead of a 50$USD Product costing you 0.5 BTC... now you saved (or got for free) as it is only 0.33 BTC
HEDGED ESCROWED IN DOLLARS
Unhedged is more risky for vendor, and can be profitable as well. It is all BTC.. U pay 1BTC, you get 1BTC in refund whether it was 100 when you bought it rising to 10,000 or dropping to 0.01. but... same for the vendor in that risk.. they can choose that risk and they may profit as well. If things are increasing unhedged, you are paying more... order unhedged when u think its the lowest it will be cause thats the best you can do. if a coin is 100 in the morning, and 130 in in an hr. when u buyed, u payed an extra .3 BTC, which if jumped to 260 u paid ( and lost) really a lot more. .3 BTC is 280 now. u gave ur .3 away for 130. u payed an extra 150 essentialy. Conversely, (some vendors bailed on fall recently but) roles reversed you bought it when it was 260 a coin for .3 BTC,... they lost whatever it is...
Your BTC coin account is what matters. When 1 coin was 11 dollars a year ago... If people would have had kept 20.... .. Figure out the math. Stuff drops make a hedged purchase so you wont lose all... (like droppping quick... unhedged... if it seems stable... and has been (you have been checking and I believe there are apps ahead of SR as SR is a weighted avg so you can see the fall before it gets here...)... Act...
Gahlee that was a lot to type.. I hope it made sense. +1 good question goblin... use ur coins wise with the volatility... Hedged buy HIGH... unhedged buy stable as low as u think.... if you need it now go hedged... or to the quick E mart..
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and so fish as well... forgot who posted it... it matters though, ESP to vendor. If your purchased was hedged... hell yea hed hope you cancel... or Ida jumped on it.
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So if I make a purchase on a hedged listing that is $100 while coins are worth $10 each and I cancel or get refunded when coins are worth $10 each, then I will receive ten bitcoins back?
Where do the nine extra bitcoins come from??
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If you click on 'Account' you will see the coins available to you at the top centre of the page. You will also see dollar in escrow and btc in escrow in the same area. If an order is hedged, it will appear as dollars in escrow. If it is unhedged, it will appear as btc in escrow.
Also, if you go to your orders page, there is a transaction ID to the left of each order. Click on that and it will show you either dollars or btc. If it is dollars, it is hedged and if it is btc it isn't hedged.
To answer your question Jack N Hoff; when a vendor decides to hedge their orders, SR charges them a 4% fee. In essence, this is where the extra bitcoin come from. Also, when the bitcoin value rose sharply, SR would have accumulated a lot of bitcoin on hedged orders as vendors received less bitcoin at the time of finalizing than the customer spent. Contrarily, when the value fell, vendors would have gotten more bitcoin than the customer spent. I guess it balances itself out in a lot of circumstances. I hope my answer explains what you are asking ;)
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Thank you psychedelicmind. That's wild.
I could essentially use a vendor account and a buyer account to make orders through myself before I think the bitcoin price will crash and make lots of money from the hedging system.
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Thank you psychedelicmind. That's wild.
I could essentially use a vendor account and a buyer account to make orders through myself before I think the bitcoin price will crash and make lots of money from the hedging system.
That idea never crossed my mind, but i'm sure it could be done. Although, there are rules about vendors buying with dummy accounts as it is unethical. You could just save the 4% hedging fee, the hassle of getting coins to SR etc and trade bitcoins on the bitcoin market. It would save a lot of hassle ;)
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Thank you psychedelicmind. That's wild.
I could essentially use a vendor account and a buyer account to make orders through myself before I think the bitcoin price will crash and make lots of money from the hedging system.
That idea never crossed my mind, but i'm sure it could be done. Although, there are rules about vendors buying with dummy accounts as it is unethical. You could just save the 4% hedging fee, the hassle of getting coins to SR etc and trade bitcoins on the bitcoin market. It would save a lot of hassle ;)
That is true. Just sell them on the market and buy them back cheap.