Silk Road forums

Discussion => Newbie discussion => Topic started by: asdfqwertyzxcv on March 26, 2013, 12:18 am

Title: Insane inflated bitcoin ...
Post by: asdfqwertyzxcv on March 26, 2013, 12:18 am
Hi All,
    I'm still wet behind the ears regarding btc and sr.  What's with the 500% +/-  rise in the cost of a bitcoin since the beginning of the year?  I was looking into my first purchase just last week but with the dramatic rise in btc value, my cost will end up considerably higher.  What may have been a good value last week has me priced out of the market this week.  Does anyone else see the btc exchange rate as cost prohibitive?   Or am I missing something here.  I don't claim to have a business degree.  I'm much more apt to wait on the sidelines until the market has a little stability.   Any thoughts from the greater sr community?  Thanks.
Title: Re: Insane inflated bitcoin ...
Post by: Player3013 on March 26, 2013, 12:25 am
prices fluctuate due to world events. no one can trust banks anymore.
Title: Re: Insane inflated bitcoin ...
Post by: bayUK on March 26, 2013, 12:32 am
Just like gold, price is based on the bitcoins that are in the market right now. (What people want to sell). There aren't enough bitcoins on the market to supply the current demand at a low price. People are holding onto their bitcoins and who wouldn't after watching what has happened to price just this year.
Title: Re: Insane inflated bitcoin ...
Post by: thelovedragon on March 26, 2013, 12:35 am
Yes, you're missing something.
The price in dollars for whatever you're looking to buy on silkroad doesn't change.
As the dollar price of a bitcoin  increases, the btc price for your substance of choice decreases.
Hope that helps.
Title: Re: Insane inflated bitcoin ...
Post by: srthrow10 on March 26, 2013, 12:39 am
Some stability isn't too much to ask for, since the prices are based on the weighted average, it is not too horrible to wait until the weighted average are close to what you are actually paying for on the coin.
Title: Re: Insane inflated bitcoin ...
Post by: asdfqwertyzxcv on March 26, 2013, 01:34 am
Thanks LoveDragon, That makes sense.  I had a feeling that might be the case.  If it weren't, buyers would be complaining about prices all over the forum and sellers would be constantly adjusting their prices.
Title: Re: Insane inflated bitcoin ...
Post by: newbottles on March 26, 2013, 09:14 pm
If you want to be conservative, just deposit the amount you want to spend immediately.  Holding BTC presents some risk/reward right now.  I see them increasing in value mid/long-term, but a nasty correction in the near term is getting more and more likely right now.
Title: Re: Insane inflated bitcoin ...
Post by: caman420 on March 26, 2013, 09:17 pm
THIS TIME NEXT WEEK 1BITCOIN =$100#

GREAT TIME TO ALIVE
Title: Re: Insane inflated bitcoin ...
Post by: therealzeticus on March 26, 2013, 09:21 pm
i like turtles
Title: Re: Insane inflated bitcoin ...
Post by: AddyJacks on March 26, 2013, 09:26 pm
I know lol one time when I got my refund back from SuperTrips it was $400 more then what I spent, was a pretty good week.
Title: Re: Insane inflated bitcoin ...
Post by: mvick07 on March 26, 2013, 09:29 pm
I know lol one time when I got my refund back from SuperTrips it was $400 more then what I spent, was a pretty good week.
Daaaamn. That's awesome. SuperTrips has been giving a lot of refunds lately  >:( :-\ :-X
Title: Re: Insane inflated bitcoin ...
Post by: JackBlue on March 26, 2013, 10:28 pm
Getting a little bit technical on the topic, for people holding bitcoins, goods and products that you can buy with bitcoins are in a DEFLATIONARY spiral downwards.  IRL, deflation is pretty rare (Japan has had deflation lately).  But deflation has pretty strange effects on peoples' behavior and it is probably at least part of the explanation for the rise in the exchange rate.  The rate has been climbing for long enough that people are starting to assume that it will continue.  So in that situation, you're better off buying something next week or month or year than now, because it will be cheaper in the future in bitcoin terms.  Someone holding bitcoins sees drug prices in bitcoins declining week by week.  So the result is people are hanging onto their bitcoins, contributing to the tight supply.  For a real world economy like Japan, deflation is considered a really bad thing because it's a serious drag on the economy.  Not sure how much that applies to our cybercurrency, but it seems a bit disfunctional at this point. 
Title: Re: Insane inflated bitcoin ...
Post by: l33tn355 on March 26, 2013, 10:51 pm
Bitcoin inflation is meaningless when it comes to SR. Just be sure to buy exactly what you expect to spend, and spend it all. This way you won't get caught if the market crashes. On the flip side you could make money though if it keeps going up.
Title: Re: Insane inflated bitcoin ...
Post by: rickyrick on March 26, 2013, 10:56 pm
You could call it inflated..  but its more like fiat is depreciating.