Silk Road forums

Discussion => Newbie discussion => Topic started by: TurpenT on March 20, 2013, 01:50 am

Title: BTC Bubble Burst
Post by: TurpenT on March 20, 2013, 01:50 am
wouldnt it be great if BTC dropped back down to $6-7 by the time the Road is back up?

this 50 post thing is ludicrous
Title: Re: BTC Bubble Burst
Post by: Millboy on March 20, 2013, 02:06 am
Why? SOOOOOO many people would lose money

and when you buy coins you would have to buy like 50 instead of 10.
Title: Re: BTC Bubble Burst
Post by: NurseJoy on March 20, 2013, 02:07 am
Always hedge!
Title: Re: BTC Bubble Burst
Post by: enjoytheride85 on March 20, 2013, 02:15 am
Care to explain what hedging is??
Title: Re: BTC Bubble Burst
Post by: loadz on March 20, 2013, 02:26 am
I'd hate to see it drop now, but right before buying BC would be nice.
Title: Re: BTC Bubble Burst
Post by: TurpenT on March 20, 2013, 02:27 am
yea, it wouldn't be good. It would actually be awful.I would be among the many losing money :-\

Luckily, the very opposite could in this instance. Our BTC's could be gaining value right now (or losing value in opposite conditions).

I'm just bored and playing over here since the main site's down. I guess this gives us more time to watch our BTC's value go up up up (knock knock)
Title: Re: BTC Bubble Burst
Post by: joedoe on March 20, 2013, 02:28 am
it will burst just like any bubble does.
Title: Re: BTC Bubble Burst
Post by: ontheroadagain on March 20, 2013, 02:33 am
wouldn't the sellers just change their btc prices to even out the exchange rate anyways? it'd be nice to see some stability i think but i'm pretty new to all this
Title: Re: BTC Bubble Burst
Post by: enjoytheride85 on March 20, 2013, 02:36 am
Active bitcoin charts show the bitcoin going up right now, currently around 60
Title: Re: BTC Bubble Burst
Post by: TorUser1549 on March 20, 2013, 02:39 am
I believe everyone on the road would lose money. That is a bad idea!
Title: Re: BTC Bubble Burst
Post by: iiivision on March 20, 2013, 02:41 am
should i buy now or wait a day or 2 whats the predictions for the next couple of days?
Title: Re: BTC Bubble Burst
Post by: NurseJoy on March 20, 2013, 02:44 am
Care to explain what hedging is??

Hedging just means that by the time the order is finalised and you get sent payment, the amount of bitcoins SR gives you will be the dollar amount at that precise time. This means that if you sell something for one bitcoin at $50/coin, then even if by the time you get paid the value of a coin crashes, SR will still give you 50 dollars worth of coins. Of course, this means you also run the risk of getting less bitcoins than initially expected (if the value of a bitcoin goes up). But I find that is simply a gamble some people are willing to take, I find the dollar value is what counts in the end so I always hedge.

There is a buyers guide on SR that explains a lot of things, in your account section.

<3
NurseJoy
Title: Re: BTC Bubble Burst
Post by: Experienced Dreamer on March 20, 2013, 02:45 am
From what I have read and from what I understand, there seems to be many people who have invested into BTC.  They will most likely cash out sooner than later.  When this happens, BTC cost will drop significantly.
Title: Re: BTC Bubble Burst
Post by: ruby123 on March 20, 2013, 02:45 am
With the considerable turmoil in Europe and Brussels hell bent on levying a tax on Cypriot CD's, BTC's value will hit 100.The currency's anonymity could solve the problem of  banking's strangulation of the business transaction market. The inability to tax BTC also helps to counter the significant austerity measures which have been imposed.
Title: Re: BTC Bubble Burst
Post by: ruby123 on March 20, 2013, 02:47 am
From what I have read and from what I understand, there seems to be many people who have invested into BTC.  They will most likely cash out sooner than later.  When this happens, BTC cost will drop significantly.

That presupposes BTC's growth is flat and/or demand is deceasing.This isn't true but any measure.
Title: Re: BTC Bubble Burst
Post by: TurpenT on March 20, 2013, 02:48 am
Care to explain what hedging is??

Enjoy-

Hedging (correct me if I'm wrong Nurse) is used by strictly Vendors.  Hedging locks that BTC value in once the order is placed and is in escrow. So when something like a site outage happens, the Vendor isn't affected by whatever happens in the BTC climate during that time. The order has already been paid for and the BTC's or $$ doesn't change once the order is in escrow. (Hedging is a safeguard for Vendors, and Escrow is a safeguard for Buyers). This is much more relavent for Vendor's, as they are more likely to have large sums of BTC sitting in their wallets. But with hedging, regardless of what happens to the BTC climate, they won't be effected.

For us measly buyers that have BTC in our wallets on SR, well we're not protected and don't have an option of hedging. Depending on the BTC climate we are at risk of either gaining or losing $. We're just lucky that BTC prices are still increasing for now.
Title: Re: BTC Bubble Burst
Post by: ravola on March 20, 2013, 02:49 am
BTC is what HAD been keeping me from SR...
Title: Re: BTC Bubble Burst
Post by: enjoytheride85 on March 20, 2013, 02:52 am
Care to explain what hedging is??

Hedging just means that by the time the order is finalised and you get sent payment, the amount of bitcoins SR gives you will be the dollar amount at that precise time. This means that if you sell something for one bitcoin at $50/coin, then even if by the time you get paid the value of a coin crashes, SR will still give you 50 dollars worth of coins. Of course, this means you also run the risk of getting less bitcoins than initially expected (if the value of a bitcoin goes up). But I find that is simply a gamble some people are willing to take, I find the dollar value is what counts in the end so I always hedge.

There is a buyers guide on SR that explains a lot of things, in your account section.

<3
NurseJoy

Ahh, that makes a lot of sense. I am not a vendor, just a buyer who is concerned I may have bought at the wrong time! THANKS!
Title: Re: BTC Bubble Burst
Post by: TurpenT on March 20, 2013, 02:53 am
Active bitcoin charts show the bitcoin going up right now, currently around 60

The current price for BTC: 60.29 and still climbing. Weighted avg is 56.29 (what SR bases prices on)

**clearnet**

http://preev.com/
http://mtgox.com/
Title: Re: BTC Bubble Burst
Post by: djebz on March 20, 2013, 02:54 am
I should have been able to get my bitcoins about 8 hours earlier, but for some reaosn the place never gave me a coupon code to enter, and the bitcoin price went up by almost 10 dollars, costing me about 50 bucks, just for their mistake. Oh well. =/
Title: Re: BTC Bubble Burst
Post by: enjoytheride85 on March 20, 2013, 02:57 am
Thanks TurpenT. Useful Information.
Title: Re: BTC Bubble Burst
Post by: Experienced Dreamer on March 20, 2013, 02:58 am
@ ruby123

I should have mentioned I have not read much at all.  I was only speculating, poorly.  ;D
Title: Re: BTC Bubble Burst
Post by: enjoytheride85 on March 20, 2013, 03:01 am
And then down to 59.7 in less than a minute.. How does this fluctuate so dramatically?
Title: Re: BTC Bubble Burst
Post by: PrincessHIGH on March 20, 2013, 03:15 am
Everyone who's concerned read this thread, it just about explains everything you need to know about the current Bitcoin situation 'Dispelling SR Myths: #1 Hashrate influences Bitcoin price' dkn255hz262ypmii.onion/index.php?topic=134258 especially the last sentence if you wish to know what's responsible for the rapid rise.