Silk Road forums

Discussion => Newbie discussion => Topic started by: badassdaddy on February 05, 2013, 03:48 am

Title: prices
Post by: badassdaddy on February 05, 2013, 03:48 am
whats with the bitcoin going up in price everyday? i dont understand alot with  SR cause im a newbie and well .... this site looks effin DOPE! Cant wait to get sorted with the whole coin thing but man theres so many questions i need  answered but dont want to be a pest... :-\
Title: Re: prices
Post by: boomer1932 on February 05, 2013, 03:58 am
It fluctuates according to how many BTC are being bought and sold.  It functions similar to the way stock in a company works.  When more faith is being put into BTC as a form of money, the value of each BTC increases.

Most items on Silk Road are tied to a specific dollar amount though, to avoid changes in revenue due to fluctuations in the price for BTC.
Title: Re: prices
Post by: farmer1 on February 05, 2013, 04:07 am
You aren't being a pest. Discussing this stuff is what the forums are all about.

More people are buying bitcoins every day. They are scarce so this makes the price rise. Remember, the price you buy them for is meaningless without comparing it to the price you sell them for.
Title: Re: prices
Post by: badassdaddy on February 05, 2013, 04:34 am
do they ever go down.and trying to set bitcoins up hard?
Title: Re: prices
Post by: farmer1 on February 05, 2013, 04:48 am
Yes, they do go down.

Read up on the forums about bitcoins. They are fairly easy to obtain.
Title: Re: prices
Post by: d5 on February 05, 2013, 04:56 am
Silkroad has long been holding it down in terms of keeping bitcoins stable, without it they would have already died. They are going crazy at the moment due to in increase in non-onion sites starting to accept them and the media has began portraying them as more than just a medium for drug transactions.
Title: Re: prices
Post by: alevay on February 05, 2013, 05:01 am
I am going to be careful and spend what I get when i get it, as the market can crash at anytime, but you would have to think that they will eventually keep going up steadily as they are only making a set amount. i believe that silkroad is the number one vendor for BTC
Title: Re: prices
Post by: maple on February 05, 2013, 05:03 am
If you are new to Bitcoin, I would reccomend checking out the website, bitcoin.org.
Title: Re: prices
Post by: UkuleleManster on February 05, 2013, 05:04 am
Bitcoins started making a major move up around October. At that time, the mining difficulty doubled. The difficulty in mining bitcoins always increases incrementally, but last October you had the first time in Bitcoin history that the difficulty doubled. So for small time miners like me, it takes twice as much time or twice as much hashpower to generate the same amount of coins. Looking back on it now I wish I would've bought bitcoins before October! I think it's pretty safe to say that the value of bitcoins will always be going up... as more and more people use them and at the same time they are harder and harder to mine. Now for the first time you have specialized "ASIC" rigs coming online- whereas before you could use an old gaming graphics card to mine bitcoins, increasingly you will have to shell out big bucks for specialized hardware. So as time goes on there are fewer miners... and those people who are no longer mining have to buy their bitcoins, which further pushes up the price.  I wouldn't count on bitcoin prices dropping much. The rule of thumb seems to be buy now before prices go up higher. But I could be wrong.  8) ;)

Here is the forum for learning everything you ever wanted to know about bitcoin-

https://bitcointalk.org/
Title: Re: prices
Post by: badassdaddy on February 05, 2013, 05:05 am
so what should i do? since im new. should i set up a BTC and how much should i start  with
Title: Re: prices
Post by: John Humphreys on February 05, 2013, 05:14 am
Bitcoin is a currency, so it has an exchange rate with other currencies. Most commonly it is quoted against the US dollar. The value of bitcoins will fluctuate according to demand and supply.

Demand for bitcoins is determined by how many people want to transact in bitcoin (among other things). One of the uses for bitcoin is to trade on SR, so if SR gets more traffic then there will be more demand for bitcoin, and that means there will be a likely increase in the value of bitcoins. If/when more traders start to accept bitcoins that will also increase the demand for bitcoin, and lead to higher values.

Supply for bitcoins is determined by an algorithm written by the founder(s). The plan is to steadily reduce the amount of new bitcoins over time until the currency reaches a set limit, and then the supply will be fixed. At that point, the only way to increase broadly-defined "supply" will be if somebody is able to introduce a sophisticated bitcoin banking system that trades in bitcoin credit. That hasn't happened yet.

Looking forward, with fixed supply and assuming increasing demand, then bitcoins could be expected to continue appreciating. Of course, this depends crucially on whether people want to transact in bitcoin... if everybody suddenly turns away from bitcoin for some reason, then it can potentially drop down to zero.

Since there has never been a currency like bitcoin before, nobody really knows what is going to happen next.
Title: Re: prices
Post by: someone703 on February 05, 2013, 05:16 am
You're best off getting just enough for what you need (possibly a bit more since it can take time and be a pain in the butt to get the coins).

Getting more than you need can be a gamble with hoping the price goes up instead of down.  It's been holding stable at the $20 mark for the past couple days but you never know.

Title: Re: prices
Post by: Wotifbl on February 05, 2013, 05:23 am
I have seen a few places that most vendors are pegged to USD
Is there a way to tell if a vendor does this, or is it just common practice?