Silk Road forums

Discussion => Newbie discussion => Topic started by: seventoes on March 29, 2013, 07:43 am

Title: ??-newbie needs help as to why, after changing account settings, cash diappearin
Post by: seventoes on March 29, 2013, 07:43 am
I paid 403.95 to bitinstant last night via Walmart--it said I'd get 389 worth BTC's and at the time Gox was at 82 but only got 4.20 in btc--was hoping for almost 5...So I'm not able to buy as much--it simply isn't working out re vendors, pricing, fluctuating, SR lag time, etc....SOOOO I changed my account settings to read Cash instead of BTC...so I can monitor it closer..........well, I had an order problem with a vendor who's item disappeared so got a refund and it was correct at first, then 30 minutes later I looked and the money had dropped 4.30 cents in my account for cash....I thought the vendor did something after they first deposited the refund because it disappeared so quickly--but, as I'm looking for replacement order my cash is disappearing before my eyes....What is going on....I thought that the cash doesn't change only the BTC...it has gone down another .20 cents....I'm not understanding so can anyone clear this up for me?
Title: Re: ??-newbie needs help as to why, after changing account settings, cash diappearin
Post by: dothedamnthing on March 29, 2013, 08:07 am
You don't have cash in your SR account, you have BTC. The option to display in cash simply shows you the current USD value of the amount of BTC you have. When the value of BTC drops, as it has today, so does your balance.
Title: Re: ??-newbie needs help as to why, after changing account settings, cash diappearin
Post by: Wadozo on March 29, 2013, 10:09 am
seventoes, you really need to take the time to educate yourself on the the way SR works and what that actually entails for buyer. There is mountains of information to digest but it needs to be done if you wish to have a pleasurable experience using SR. Remember, when you buy Bitcoins, that business will most likely charge a commission on your transaction. The exchange rate used by Mt.Gox maybe $82 = 1 BTC where as down the road, another Exchange, Bob's Bitcoins, has set his rate at $87 = 1BTC. Mt. Gox is used as a guide to the Bitcoin price by many Exchanges but that doesn't mean they will sell them to you for that price. Vendor's have the choice of hedging or unhedging their customer's orders ( for a 4% fee to SR from memory). This means that the BTC price is pegged to the US Dollar and as such, any major fluctuation in the BTC exchange rate won't cause a vendor to loose a stack of money. If the price of BTC'S suddenly dropped to $10 and buyers placed orders with you when it was $50, when you cash out you will be down a lot of money. It can work in the other direction as we are seeing at the moment with a huge BTC price but hedging your coins gives a vendor some peace of mind should things go haywire with the BTC Exchange rate. Believe me when I say, there is a lot to take in. I know it is very exciting when you realize this is not a dream, but is actually reality. Rushing into things without the required knowledge to protect your anonymity and operate securely is a sure fire recipe to disaster. Knowledge is Power, especially when it pertains to keeping out of serious trouble. It's not what you want to hear I'm sure, but I'm just being honest with you. There are many complacent and foolish newbies who haven't truly comprehended what the consequences are should they come under the eyes of the Law and are caught. Knowing how to operate securely and remain anonymous is Paramount.  :)
Title: Re: ??-newbie needs help as to why, after changing account settings, cash diappearin
Post by: seeyallnextyear on March 29, 2013, 11:59 am
seventoes, you really need to take the time to educate yourself on the the way SR works and what that actually entails for buyer. There is mountains of information to digest but it needs to be done if you wish to have a pleasurable experience using SR. Remember, when you buy Bitcoins, that business will most likely charge a commission on your transaction. The exchange rate used by Mt.Gox maybe $82 = 1 BTC where as down the road, another Exchange, Bob's Bitcoins, has set his rate at $87 = 1BTC. Mt. Gox is used as a guide to the Bitcoin price by many Exchanges but that doesn't mean they will sell them to you for that price. Vendor's have the choice of hedging or unhedging their customer's orders ( for a 4% fee to SR from memory). This means that the BTC price is pegged to the US Dollar and as such, any major fluctuation in the BTC exchange rate won't cause a vendor to loose a stack of money. If the price of BTC'S suddenly dropped to $10 and buyers placed orders with you when it was $50, when you cash out you will be down a lot of money. It can work in the other direction as we are seeing at the moment with a huge BTC price but hedging your coins gives a vendor some peace of mind should things go haywire with the BTC Exchange rate. Believe me when I say, there is a lot to take in. I know it is very exciting when you realize this is not a dream, but is actually reality. Rushing into things without the required knowledge to protect your anonymity and operate securely is a sure fire recipe to disaster. Knowledge is Power, especially when it pertains to keeping out of serious trouble. It's not what you want to hear I'm sure, but I'm just being honest with you. There are many complacent and foolish newbies who haven't truly comprehended what the consequences are should they come under the eyes of the Law and are caught. Knowing how to operate securely and remain anonymous is Paramount.  :)

Here! Here!! Motion Seconded!
Title: Re: ??-newbie needs help as to why, after changing account settings, cash diappearin
Post by: spokeknife on March 29, 2013, 01:25 pm
That's "hear, hear".

#pedant

Title: Re: ??-newbie needs help as to why, after changing account settings, cash diappearin
Post by: happytalk1 on March 29, 2013, 04:01 pm
Watching your money change value can be wonderful or scary. Recently the $ value on SR has been increasing many times the rate of inflation. Love the post by Wadozo. Lots of info for newbies, just not so easy to always find the answers