Silk Road forums

Discussion => Security => Topic started by: real pharmaceuticals on August 18, 2012, 11:19 am

Title: WHAT MAKES BITCOIN GAIN/LOOSE VALUE ?
Post by: real pharmaceuticals on August 18, 2012, 11:19 am
Hello ,

Hope your all having a nice day .

I am curious about bitcoins value, I run a business on SR marketplace and yesterday lost a bit of money whilst SR transfered BTC to an exchange,  in the space of 3 hours the price had fallen by around 5 dollars .

Does any one on here know what effects the value of bitcoins?  If there are any vendors how do you negotiate the profit loss? Do you stand stern and wait for it to go back up gain ? My prices are the cheapest i can do them for so profit margins are slim and when this happens it eats in to my profits? Anyone have the same predicament? ???

Kind regards

RP
Title: Re: WHAT MAKES BITCOIN GAIN/LOOSE VALUE ?
Post by: PiggyPie on August 18, 2012, 12:02 pm
Put simply, Supply and Demand.

If lots of people suddenly want to buy BTC to make purchases but there are not many available on the marketplace the price will rise.

The same is true of the opposite, lots of people suddenly want to sell there BTC and people don't seem to be buying prices drop as the sellers compete for the custom of the few buyers there are.

I read that the amount of BTC gained through BTC mining is slowly being reduced (by which i mean the amount you get when you break a set of code). As such we will reach a point surely where the community demanding BTC will be growing far faster than the supply of BTC in usable existence. This would mean the price of BTC would just go up and up and up. The only way this would be avoided is if the release of BTC through mining was maintained (or even increased slightly), or if websites like SR started getting busted, if buying stuff through Tor seems less safe, be that through fear of police or the removal of the safer market places, then the price of BTC would plummet due to a sudden lack of demand.

I suppose all i mean to say is im not sure viable BTC is in the long run.
Title: Re: WHAT MAKES BITCOIN GAIN/LOOSE VALUE ?
Post by: TheBusiness on August 18, 2012, 12:45 pm
Yes, look at last 24 hours of BTC trade volumes.

Big cash out = price suddenly drops.

Followed by a big buy in (since the price was low) = price rises again.

Can the market be gamed/manipulated though I wonder?
Title: Re: WHAT MAKES BITCOIN GAIN/LOOSE VALUE ?
Post by: gonzorx on August 18, 2012, 12:57 pm
most definitely. I am sure people have a lot of money (%) in this relatively small market and would be able to throw their weight around pretty ruthlessly imo
Title: Re: WHAT MAKES BITCOIN GAIN/LOOSE VALUE ?
Post by: adam420 on August 18, 2012, 03:33 pm
lost 200-300 USD within couple hours and its more and more by the hour . fuck it
Title: Re: WHAT MAKES BITCOIN GAIN/LOOSE VALUE ?
Post by: Andrewbud420 on August 18, 2012, 03:40 pm
It's Pirate@40    His investment fund is over with and closing.. that is multples of 100k+ BTC......


The price is either going to drop very low or climb due to him having to BUY BTC to give back to his investors.
Title: Re: WHAT MAKES BITCOIN GAIN/LOOSE VALUE ?
Post by: aginalda on August 18, 2012, 05:18 pm
As for factors that increase bitcoin value, bitcoin gambling sites may be increasing bitcoin demand.  Also, I have read about some bitcoin investment schemes structured like ponzi schemes, though explicit and so not fraudulent, are also pulling new users into bitcoin and so increasing bitcoin demand.  I wish I knew how important a factor these new developments in the recent bitcoin price runup are. 
Title: Re: WHAT MAKES BITCOIN GAIN/LOOSE VALUE ?
Post by: wt on August 18, 2012, 07:49 pm
Put simply, Supply and Demand.

If lots of people suddenly want to buy BTC to make purchases but there are not many available on the marketplace the price will rise.

The same is true of the opposite, lots of people suddenly want to sell there BTC and people don't seem to be buying prices drop as the sellers compete for the custom of the few buyers there are.

I read that the amount of BTC gained through BTC mining is slowly being reduced (by which i mean the amount you get when you break a set of code). As such we will reach a point surely where the community demanding BTC will be growing far faster than the supply of BTC in usable existence. This would mean the price of BTC would just go up and up and up. The only way this would be avoided is if the release of BTC through mining was maintained (or even increased slightly), or if websites like SR started getting busted, if buying stuff through Tor seems less safe, be that through fear of police or the removal of the safer market places, then the price of BTC would plummet due to a sudden lack of demand.

I suppose all i mean to say is im not sure viable BTC is in the long run.

Yeah, it seems like a active futures market might help smooth out some of the volitility.  I wonder if there are people out there are taking really long positions on bitcoins.   

I also kind of wonder if fbi/cia/dea are buying up a lot of coins, driving up the price, and then dumping them.  Not a bad way to destablize things (and they've certainly tried it in other countries).   That almost seems to subtle for them though - no one gets killed, no fundamental rights gets violated?  Isn't that what the drug war is all about?
Title: Re: WHAT MAKES BITCOIN GAIN/LOOSE VALUE ?
Post by: Andrewbud420 on August 18, 2012, 08:18 pm
one of the co-creators "Gavin Anderson" did a speech or whatever about Bitcoins for the CIA i think it was... There is a thread about it on the bitcoin forum.
Title: Re: WHAT MAKES BITCOIN GAIN/LOOSE VALUE ?
Post by: real pharmaceuticals on August 19, 2012, 02:20 pm
lost 200-300 USD within couple hours and its more and more by the hour . fuck it

Hello my friend,
Yeah i know it was harsh , its not easy running a shop SR and then to loose our profits so quickly makes it all the more harder , oh well got to take the bad with the good. Take care buddy.

Kind regards
RP
Title: Re: WHAT MAKES BITCOIN GAIN/LOOSE VALUE ?
Post by: real pharmaceuticals on August 19, 2012, 02:30 pm
Hello everyone ,

Thank you for the information was very good to be able understand a bit better why i lost my profits that day. Maybe it is outside forces that is trying to destroy the BTC so we have to use their currency and therefore have more control over us ,
 free world? where i would gladly move there lol free speech ? I wish. I believe greatly in the concept of SR and hope it has bright future.

 anyway thank you , just have to hope next time it does not happen , is it worth having auto with draw on i have read that if it is on it is easier for someone to gain information about your accounts? is this true? Enjoy the rest of the weekend  :)
Kind regards
RP
Title: Re: WHAT MAKES BITCOIN GAIN/LOOSE VALUE ?
Post by: awakened350 on August 19, 2012, 06:33 pm
Well fuck me, its down to $8 now and I'm losing tons of money :( Not going to be able to restock my MXE until it goes back up :(