Silk Road forums

Discussion => Newbie discussion => Topic started by: surmer on March 27, 2013, 10:23 am

Title: Bitcoin Inflation
Post by: surmer on March 27, 2013, 10:23 am
So, I've read a few times before about price adjustments on the Road. Bitcoin is racing ever higher on MtGox. Seriously, the prices on the Road are not accounting for the "inflation". Prices that were $60US are now $80-$90US for the same product.

Also: is it just me, or is English the only language on the Road & Forums?
Title: Re: Bitcoin Inflation
Post by: joolz on March 27, 2013, 10:27 am
$$$$ talks
Title: Re: Bitcoin Inflation
Post by: XpoUj897Tt on March 27, 2013, 10:33 am
I've read on the forum that the price of the goods are pegged to the US dollar but I've not seen any hard evidence that there is such a link.

What I have seen though is the price of products in bitcoins come down to reflect the new rates. To me it looks like the vendor's are responsible for manually updating their prices but I could be wrong.

A product I had my eye on last week changed price twice in one day as the value of the bitcoin rocketed. We pay a premium for top quality gear on the Silk Road so you're always going to pay a bit more.

With all the financial problems in the world I think we will see more bitcoin inflation. All those Russians that kept their money in the Cyprus banks are going to be looking for somewhere else to deposit it.

Title: Re: Bitcoin Inflation
Post by: joolz on March 27, 2013, 10:35 am
moolaa
Title: Re: Bitcoin Inflation
Post by: yui72 on March 27, 2013, 12:04 pm
When you are talking about economics I think you mean to say deflation?
Inflation is like when the federal government money we use now turns into worthless toilet paper.
I am nitpicking LOL!
Title: Re: Bitcoin Inflation
Post by: flakesmith on March 27, 2013, 12:16 pm
That's hyperinflation. Inflation is just a rise in the price level.
Title: Re: Bitcoin Inflation
Post by: surmer on March 28, 2013, 12:56 am
Rules don't apply to certain markets.

Drugs, for instance, belongs in a different market classification altogether. It is the one of the most dangerous commodity in existence, along with human trafficking. Hyperinflation? Addiction? Rape? Extortion? Murder?

How volatile is this market? Money exists as long as there are goods. Arms Control has a tremendous effect on market price.
Title: Re: Bitcoin Inflation
Post by: LexLuthor on March 28, 2013, 01:08 am
Most if not all vendors peg their prices to U.S. Some vendors might be taking advantage though.
Title: Re: Bitcoin Inflation
Post by: weed4me6969 on March 28, 2013, 01:24 am
keep going up baby, but jump down for one day so i can put some more coins in wallet.  8)
Title: Re: Bitcoin Inflation
Post by: kingghb on March 28, 2013, 01:38 am
I'm pretty sure the vendors set their prices in USD and the site automatically converts the currency. Well i know this is the case but i'm not sure if its optional feature to the vendors.
Title: Re: Bitcoin Inflation
Post by: TheConnoisseur on March 28, 2013, 02:10 am
bitcoin will continue to rise, with the occasional crazy fall, just don't order when its crazy low, and ALWAY keep your listings hedged OR DONT ORDER
if your item you want to buy is not hedged
Title: Re: Bitcoin Inflation
Post by: nbomber on March 28, 2013, 02:19 am
Vendors have the option to choose whether listings are pegged to USD or BTC. Some prices will always appear to fluctuate with the BTC exchange rate, because not everyone has their prices pegged to the same currency.
Title: Re: Bitcoin Inflation
Post by: NewStem on March 28, 2013, 02:22 am
I've been tracking the rise of the bitcoin over the past few days and just can't tell if I should buy, because with every hesitation it gets more expensive and I have no appreciation for how long this can endure- thoughts? Am I thinking too much about it? Buy buy buy?
Title: Re: Bitcoin Inflation
Post by: surmer on March 28, 2013, 02:34 am
Buy until there's a virus.

Take a look at the housing crash. DOW is back up. You have to weather some time, but in the end, you get back what you invested....

except in the case of liquidation. : (
Title: Re: Bitcoin Inflation
Post by: Codesr on March 28, 2013, 02:34 am
I've been tracking the rise of the bitcoin over the past few days and just can't tell if I should buy, because with every hesitation it gets more expensive and I have no appreciation for how long this can endure- thoughts? Am I thinking too much about it? Buy buy buy?

It's going to go over $100 per coin. Could happen fast. If you are going to buy hold and offload I would do it soon. People speculate the "bubble will burst". Who knows, it could go up for a while, it could tank over night. I've made quite a bit over the past month and a half as it has gone up steadily. A $10,000 investment in bitcoin about a month ago when it was $15 a coin would have gotten you about 666.67 bitcoins. Today at about $85 a coin they would be worth 85-15*666.67=$45,000. Net profit of $35,000 in less than two months.
   
Title: Re: Bitcoin Inflation
Post by: nbomber on March 28, 2013, 02:42 am
Recently, it even looked like BTC was tanking and everyone started screaming "BUBBLE! BUBBLE!"

But then people started buying up coins like hotcakes as the price went down, and it bounced right back to where it started before the "crash" and kept on climbing. I don't think bitcoins are anywhere near the endgame yet.
Title: Re: Bitcoin Inflation
Post by: surmer on March 28, 2013, 12:56 pm
Bitcoin Value

It is based on the consumer. As long as it stays stable, the SR stays up, and other retail sectors adopt bitcoin, it will be a reliable currency.

It is based on cryptographic techniques, so it has as much stability as any currency--which is based on mathematical formula and history... nearly as complicated as cryptography. New economic theory comes from recognizing and solving new mathematical formulae in nature. As cryptography gets better, so will the problem solvers... only making the crypto-currency more valuable as its software gets updated.

It's a new kind of currency. With that said, it will have its own future, slightly different than the history of currency, but it is not independent of history altogether. Stay informed. Stay vigilant. keep preparing.
Title: Re: Bitcoin Inflation
Post by: KintaroBC on March 28, 2013, 01:55 pm
Goods are pegged to the US dollar but not in real time. You just have to get the best offers you can. Bitcoin could be up because of a ransom in it from some rich person that isn't telling the police and when the ransomers sell it will lose heaps of value again. You just have to get the most out of it as you can, these prices are well under what you could get on the street so just stop bitching.

Bitcoin Value

It is based on the consumer. As long as it stays stable, the SR stays up, and other retail sectors adopt bitcoin, it will be a reliable currency.

It is based on cryptographic techniques, so it has as much stability as any currency--which is based on mathematical formula and history... nearly as complicated as cryptography. New economic theory comes from recognizing and solving new mathematical formulae in nature. As cryptography gets better, so will the problem solvers... only making the crypto-currency more valuable as its software gets updated.

It's a new kind of currency. With that said, it will have its own future, slightly different than the history of currency, but it is not independent of history altogether. Stay informed. Stay vigilant. keep preparing.

There is only one currency with any stability: gold. It has the highest stocks to flows ratio, it is a monetary metal. Bitcoin is still based on the quantity theory of money. Gold can't inflate for the same reason Bitcoin can't: it is only mined when it is profitable. Which is the silly thing about Bitcoin, the mining difficulty and reward drops are completely unneeded.
Title: Re: Bitcoin Inflation
Post by: surmer on March 28, 2013, 02:05 pm
Goods are pegged to the US dollar but not in real time. You just have to get the best offers you can. Bitcoin could be up because of a ransom in it from some rich person that isn't telling the police and when the ransomers sell it will lose heaps of value again. You just have to get the most out of it as you can, these prices are well under what you could get on the street so just stop bitching.

Bitcoin Value

It is based on the consumer. As long as it stays stable, the SR stays up, and other retail sectors adopt bitcoin, it will be a reliable currency.

It is based on cryptographic techniques, so it has as much stability as any currency--which is based on mathematical formula and history... nearly as complicated as cryptography. New economic theory comes from recognizing and solving new mathematical formulae in nature. As cryptography gets better, so will the problem solvers... only making the crypto-currency more valuable as its software gets updated.

It's a new kind of currency. With that said, it will have its own future, slightly different than the history of currency, but it is not independent of history altogether. Stay informed. Stay vigilant. keep preparing.

There is only one currency with any stability: gold. It has the highest stocks to flows ratio, it is a monetary metal. Bitcoin is still based on the quantity theory of money. Gold can't inflate for the same reason Bitcoin can't: it is only mined when it is profitable. Which is the silly thing about Bitcoin, the mining difficulty and reward drops are completely unneeded.

bump
Title: Re: Bitcoin Inflation
Post by: gold on April 02, 2013, 10:52 pm
Goods are pegged to the US dollar but not in real time. You just have to get the best offers you can. Bitcoin could be up because of a ransom in it from some rich person that isn't telling the police and when the ransomers sell it will lose heaps of value again. You just have to get the most out of it as you can, these prices are well under what you could get on the street so just stop bitching.

Bitcoin Value

It is based on the consumer. As long as it stays stable, the SR stays up, and other retail sectors adopt bitcoin, it will be a reliable currency.

It is based on cryptographic techniques, so it has as much stability as any currency--which is based on mathematical formula and history... nearly as complicated as cryptography. New economic theory comes from recognizing and solving new mathematical formulae in nature. As cryptography gets better, so will the problem solvers... only making the crypto-currency more valuable as its software gets updated.

It's a new kind of currency. With that said, it will have its own future, slightly different than the history of currency, but it is not independent of history altogether. Stay informed. Stay vigilant. keep preparing.

There is only one currency with any stability: gold. It has the highest stocks to flows ratio, it is a monetary metal. Bitcoin is still based on the quantity theory of money. Gold can't inflate for the same reason Bitcoin can't: it is only mined when it is profitable. Which is the silly thing about Bitcoin, the mining difficulty and reward drops are completely unneeded.

You're doing my sales pitch for me. I'm a new vendor with some low priced gold coins. Check out my seller page.
Title: Re: Bitcoin Inflation
Post by: smokecrack on April 02, 2013, 11:13 pm
Goods are pegged to the US dollar but not in real time. You just have to get the best offers you can. Bitcoin could be up because of a ransom in it from some rich person that isn't telling the police and when the ransomers sell it will lose heaps of value again. You just have to get the most out of it as you can, these prices are well under what you could get on the street so just stop bitching.

Bitcoin Value

It is based on the consumer. As long as it stays stable, the SR stays up, and other retail sectors adopt bitcoin, it will be a reliable currency.

It is based on cryptographic techniques, so it has as much stability as any currency--which is based on mathematical formula and history... nearly as complicated as cryptography. New economic theory comes from recognizing and solving new mathematical formulae in nature. As cryptography gets better, so will the problem solvers... only making the crypto-currency more valuable as its software gets updated.

It's a new kind of currency. With that said, it will have its own future, slightly different than the history of currency, but it is not independent of history altogether. Stay informed. Stay vigilant. keep preparing.

There is only one currency with any stability: gold. It has the highest stocks to flows ratio, it is a monetary metal. Bitcoin is still based on the quantity theory of money. Gold can't inflate for the same reason Bitcoin can't: it is only mined when it is profitable. Which is the silly thing about Bitcoin, the mining difficulty and reward drops are completely unneeded.
without the mining difficulty and reward drop then everyone with any computer at all would be mining them and they would all be mined fast. would have no value, not many adopters, it would have finished long ago.