Silk Road forums

Support => Technical support => Topic started by: jorg on December 22, 2011, 06:41 pm

Title: Questions on bitcoin fluctuations
Post by: jorg on December 22, 2011, 06:41 pm
Hi,

I cant figure out properly how this works. I will try to explain with some examples.

Let's say i want to buy something that costs 20$ on SilkRoad.

If i buy the needed amount of BTC when the rate is at 3.50$ = 1BTC. I will get 5.71BTC...
Same with a rate of 4.00$ = 1BTC. I will get 5BTC...

So let's say I've bought them when the rate was at 3.50$/BTC. But then the rate goes to 4.00$/BTC. Will I have more $ on my account or it changes nothing  ?

How can I add an exact amount of $ on my account ? Does the $ balance changes with the BTC balance when the rates vary ? (i think SR already improved that but it's not clear for me yet)

Sorry if you don't understand clearly what I'm trying to explain.

I hope someone does understand...  ???




Title: Re: Questions on bitcoin fluctuations
Post by: rule175 on December 22, 2011, 08:06 pm
Regardless of which way the exchange rate goes, you will still have paid the same amount of bitcoins and nothing more will happen on your end (besides receiving the product).

On the seller hand, however, it will depend on whether the seller has enabled a hedged escrow or not.  If it is not hedged, then the seller will receive all of the bitcoins (minus the transaction fee).  If it is hedged, then the seller will receive the amount of bitcoins equal to the dollar amount of the transaction at the time of shipping.  So the fluctuations in exchange rate will only affect the number of bitcoins received by a hedged seller.  If the value goes up, then the seller will receive fewer bitcoins and if the value goes down, then the seller will receive more bitcoins.  When the seller receives fewer bitcoins, the rest of them go to the Silk Road admint, but if the seller receives more bitcoins then they will be taken out of the Silk Road admin's account.

Hope this clears things up. =]
Title: Re: Questions on bitcoin fluctuations
Post by: jorg on December 22, 2011, 09:37 pm
Everything is clear now.

Thanks !