Silk Road forums
Discussion => Newbie discussion => Topic started by: mobile96 on April 10, 2013, 04:05 pm
-
I see that Bit coins have gone up in price a lot lately so my question is this if I buy Bit coins and put them in Silk Road account and they decrease in value I will loose money. The prices on Silk road will Change to reflect that decrease in value so no matter if they do decrease I will still be able to buy the items I want. is this correct?
-
Yup! I bought some a couple days ago, made a purchase and now have nearly got that money back purely from interest, good stuff :)
EDIT
may have had a brain fart. If BTC crashes then you will lose money, because vendors will increase the amount charged so they meet their margins.
-
It'll grow in your account :-)
But prices are adjusted on items
-
If you have BTC in your wallet now and tomorrow the market crashes, you'd lose most of your money.
For example, say BTC traded at $100 per coin today, so you bought 5 coins for $500, and tomorrow they dropped to $1 per coin, you'd only have $5 in your account. That's how exchange rates work.
The volatility of the market is awful, I know. But the vendors are at a great risk as well, because once they have the BTC they need to be able to convert it to USD. It would suck to be a vendor and get a few BTC from a transaction just to find out the market has crashed and the BTC is relatively worthless.
-
SR wallet is like a investment fund.
-
that's why you should exchange it for a more stable currency once a sizable amount is accumulated.
-
that's why you should exchange it for a more stable currency once a sizable amount is accumulated.
Truth, although vendors have to be careful when converting to USD because many institutions now have systems in place to stop money laundering.
Everyone's at risk when the market is this volatile.
-
If you don't wanna play games with the ever-changing market the best thing to do is buy bitcoins only when you want to purchase something and buy it right away. The price of bitcoins may change but the price of drugs in major currencies always remains the same
-
True but drug dealers always have to worry about laundering their money, whether or not bitcoins are involved