Silk Road forums
Discussion => Newbie discussion => Topic started by: southpour on June 20, 2013, 04:42 am
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Just thought it would be worthy of posting a recent experience with VIRWOX (source of bitcoin). A lot of Silkroad users do use the service and they have been in the game a long time, but they can let you down - and when you are paying a premium I think the service should match.
There are well documented methods of getting funds into VIRWOX and then by a series of conversions turn it into bitcoin which you can send to any bitcoin wallet. The process is a bit of a hassle but its not rocket science. The problem being between getting the funds into VIRWOX and making the relevant conversions you end up paying a lot more for the bitcoin. So why would you bother? Well, these transactions are supposed to happen instantly, allowing you access to that much needed bitcoin - NOW. So you are paying for this convenience with higher fees.
The problem arises when VIRWOX decided they want to HOLD your bitcoin for up to 48hrs. For new accounts the chance this will happen is extremely high, however it is very unclear that it can happen at all - until it does. Now in 48hrs alot can change with bitcoin, fluctuations are not uncommon and we are unfairly exposed to risk, this potentially could cost some series dough. Not to mention all those extra fees you paid for the "express service" now do not count for shit.
The spirit of VIRWOX's actions are anti bitcoin, reputable exchanges provide you the crypto currency at the time you hand over the funds, to do what you like with at the market rate. VIRWOX holding something YOU own because they are uncomfortable with their affiliates and chosen methods of accepting funds isn't right. They are holding YOUR bitcoin so they can continue to take risky deposits which we are proping up. My cash is on the table. Where is the bitcoin VIRWOX, where is the bitcoin!?
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That's lame. Thanks for the warning
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Iv had this happen once out of the 3+ years I have been using them and its in the TOS so not much you can do about it just wait it out and it will transfer.
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Yah I checked them out but never used them. Between their daily limits, delayed btc withdrawals, several conversions needed to get to BTC (so that effective fee will be 10+% anyway), there were other options out there. Their main business seems to be funding secondlife accounts.
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They do that on new accounts for the first couple of transaction. After the initial period they have been really quick for me.
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Ok, A few points:
1. They have the 48hr hold mainly for people paying with credit card, Just like any other exchange that would offer purchases with credit/debit cards, They don't want charge backs.
2. My daily limit was 68.00 and after about 4 transactions, it was raised to 175.00 daily.
3. You don't have to do to many conversions to obtain bitcoin, just usd/ssl -> ssl/btc.
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Good points. I was pissed as hell when I first saw the 48 hr disclaimer but it is for good reason. I didn't take 48hrs for me though. After the first limit bump it doubled after 30 days. Once you use it a couple of times you zip right through the process.
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Yeah, they just want to establish trust.
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Understand their concerns for security but these measure can be extremely adverse for customers. If bitcoin depreciates I am sure they will be happy to hand it over after 48hrs, however if it appreciates what is to stop them voiding the transfers? They don't have my trust, I cannot see anything stopping them from having their cake and eating it to.
Also the fact their service gets better after 30 days and lots of transactions isn't any consolation. The only reason they are worth using in any case is the speed in which you should be able to obtain the bitcoin. They want to be involved in the market but don't feel its necessary to operate within the spirit of it. Juggernog unless your limits are 175 bitcoin they are arbitrary, my concern relates to what possibly could adversely impact volume trades.
I will be using them sparingly in future, and will definitely be looking into alternatives for "instant" methods of obtaining bitcoin. Otherwise the tried and true reputable exchanges offer too much reliability to consider VIRWOX which is too keen for a buck
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what other options are there besides mt gox and bitinstant , both of which i refuse to do buisness with
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what other options are there besides mt gox and bitinstant , both of which i refuse to do buisness with
Lots, it really all depends on how anonymity you feel you require. Its worth looking into yourself for sure, especially if you are using VIRWOX because the additional fees make a big difference to the bottom line of the product you are buying. I believe a lot of people are using https://btc-e.com/ there is also a wiki on "buying bitcoins" that identifies the exchange, deposit & withdrawal methods which can be found here; https://en.bitcoin.it/wiki/Buying_bitcoins
Generally I would expect that someone who is taking such a strong stance by refusing to do business with them may have spent the time to evaluate their options, that may have formed the basis of their stance. Anyhow depending on trading volume/your need for anonymity will determine the best method of obtaining bitcoin for your purposes.
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Oh, I only use it once in awhile.
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Understand their concerns for security but these measure can be extremely adverse for customers. If bitcoin depreciates I am sure they will be happy to hand it over after 48hrs, however if it appreciates what is to stop them voiding the transfers? They don't have my trust, I cannot see anything stopping them from having their cake and eating it to.
Also the fact their service gets better after 30 days and lots of transactions isn't any consolation. The only reason they are worth using in any case is the speed in which you should be able to obtain the bitcoin. They want to be involved in the market but don't feel its necessary to operate within the spirit of it. Juggernog unless your limits are 175 bitcoin they are arbitrary, my concern relates to what possibly could adversely impact volume trades.
I will be using them sparingly in future, and will definitely be looking into alternatives for "instant" methods of obtaining bitcoin. Otherwise the tried and true reputable exchanges offer too much reliability to consider VIRWOX which is too keen for a buck
I have been using virwox for years now and I have never come across a whisper of them doing anything shady and believe me, if they were it would be out there.
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Holding peoples funds is dodgy, and its out there...
Please to note that they released my funds after 40hrs. Still, the 40hrs they did hold it for were important.
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The virtual worlds that feed these exchanges have quite serious problems with stolen credit cards being used. One that I know of holds funds for a couple of months so that the card owner has time to read their statement and take action (excessive I think but they've been burnt severely). The exchanges do hold transfers for a couple of days initially just in case the card company wants to take action. It might suck but there are reasons as you can see - whether you like their reasons or not. So that's why we can't have nice things.
these days local bitcoins is pushing paypal purchases so perhaps you should try them instead if you want instant access to the coins.