Silk Road forums
Discussion => Silk Road discussion => Topic started by: medicalcannibas420 on April 15, 2013, 02:19 pm
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Hello everyone,
The low bitcoin prices have me very concerned......if the bitcoin is going to continue moving forward....it has to become way more stable.....losing 50% of its buying power in 1 day is not a currency
that anyone should be interested in.
During the run up in prices i was hedged the whole way......so when I sold product i was still tied to the USD....now that those transactions are complete and the bitcoins equivalent of those transactions are in my account
they are now worth 1/2 of what they were at the finalization.
IDK.....just thinking out loud here....and only on my 1st cup of coffee.....but it seems to me......all last week.....I got paid 50% of what my products were worth.......and since most exchanges were down there was no way
to quickly convert those bitcoins into USD.
anyway....on to my second cup.......
anyone have some thoughts on this?
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I think we're in the capitulation stage and it'll continue to drop in price for some.
very good clearnet link
https://bitcointalk.org/index.php?topic=173021.0
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Same boat here.
I bought a tons coins on Friday when the price dropped thinking it would rise back up. . It did, and I made a lot of money, but fell again like you said. . its hard to run a business like this. .
I think the only solution for vending is to have a lot of operational dollars on hand and wait to cash out until the market is high. This means holding onto coins for longer.
I hope the LTC litecoin will help this situation. Especially once someone makes a website that allows instant converting of BTC to LTC and back again. There is probably already a site that does it. So you don't need to worry about LTC exchanges.
I'm almost scared to list items at a loss.
I wonder if there is any value to the possibility of establishing Silk Road credits instead of BTC?
Example: Customer buys 1 Silk Road Credit (really just a gift code) for $110. from a vendor and its converted to cash immediately to hold that value. Its immediately converted to US cash by the vendor and the vendor keeps track of the value of that credit for that persons account. The customer can choose to protect their coin value by paying more upfront. Like a hedging service. I think Im not making sense anymore..
We need an economist here. Micro and Macro economics.
Not enough coffee...
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Yeah, I too think you'll see prices fall to more reasonable levels that we saw "pre-bubble" in late January and early February. Here is a link to a chart showing what happened back in 2011 contrasted to what may be ahead for bitcoin in 2013.
Clearnet warning:
http://i.imgur.com/oxahKvK.png
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One of two things will happen. They will continue to steadily decline or they will quickly gather pace upwards and this has been the ultimate bear trap. Which I doubt it is.
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The low bitcoin prices have me very concerned......if the bitcoin is going to continue moving forward....it has to become way more stable.....losing 50% of its buying power in 1 day is not a currency
that anyone should be interested in.
It's actually been pretty stable the last 4 days, hovering between $90 and $110. But yeah, it's still too volatile.
During the run up in prices i was hedged the whole way......so when I sold product i was still tied to the USD....now that those transactions are complete and the bitcoins equivalent of those transactions are in my account they are now worth 1/2 of what they were at the finalization.
That should only affect 4 days of sales. What about the 2 months before that when bitcoins were increasing 50-200% per week and went up 1000% in value overall?
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If you lost money overall in the last 2 months, it's because you got greedy and stopped cashing out and now it's too late.
At least eddie was honest about it and admitted it.
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Same boat here.
I bought a tons coins on Friday when the price dropped thinking it would rise back up. . It did, and I made a lot of money, but fell again like you said. . its hard to run a business like this. .
I think the only solution for vending is to have a lot of operational dollars on hand and wait to cash out until the market is high. This means holding onto coins for longer.
I hope the LTC litecoin will help this situation. Especially once someone makes a website that allows instant converting of BTC to LTC and back again. There is probably already a site that does it. So you don't need to worry about LTC exchanges.
I'm almost scared to list items at a loss.
I wonder if there is any value to the possibility of establishing Silk Road credits instead of BTC?
Example: Customer buys 1 Silk Road Credit (really just a gift code) for $110. from a vendor and its converted to cash immediately to hold that value. Its immediately converted to US cash by the vendor and the vendor keeps track of the value of that credit for that persons account. The customer can choose to protect their coin value by paying more upfront. Like a hedging service. I think Im not making sense anymore..
We need an economist here. Micro and Macro economics.
Not enough coffee...
You can exchange BTC/LTC on btc-e.com But buying LTC with Dollar is a pain in the ass tho... Also LTC will be included on mtGox within the next 2 weeks.
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why is nobody reading the info and articles on bitcoins...no need for panic.
I am no expert for sure but you have to see what happens.
The twin brothers who originally ''invented'' facebook are investing in coins they claim to have 1% of all coins....
Russians losing dollars in Cyprus buying coins.
Banks are buying coins but will not admit it.
The coins...its all over the news.
Many people, who know what they are doing, buying them.
According to financial press agency Bloomberg the supercomputers you need to find bitcoins using based on the US electric prices daily 112000 dollar on electricity a day.
Mining is so profitable that these enormous cost is peanuts according what you get for the coins
It is not strange that it fluctuates like it does now when everybody is buying and .....selling again in panic.
Since Friday evening/Saturday it is round $110 and 95 with no big fall or rise......
Its not the 200 but that was to be expected.
Two weeks ago it was 55/60 dollar!
So I think it is not doing so bad now being almost twice the value in two weeks!
If you read the forums that really know about this stuff....they are not panicking....just wait, hold on to your coins and in two to four weeks it will be stable.
My coins (as a vendor) stay in my wallet for the next two weeks for sure.
And yes....I will stay selling to my customers ;)
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I don't think US banks are buying coins. That would be very dumb for them for tax reasons. A tax nightmare. The current market cap for the total bitcoins isn't even pocket change to a bank right now. Until there are defined rules and regulations I believe US banks will be staying out of it. The FEDs is another story. I don't know if anyone kept up with lulzsec but "someone" donated over 7 grand of bitcoins to Sabu while he was an FBI informant. That was when bitcoins were measly. Perhaps they were trying to track the coins when he gave them to others. We can only speculate. The price will eventually rise...
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I don't think US banks are buying coins. That would be very dumb for them for tax reasons. A tax nightmare. The current market cap for the total bitcoins isn't even pocket change to a bank right now. Until there are defined rules and regulations I believe US banks will be staying out of it. The FEDs is another story. I don't know if anyone kept up with lulzsec but "someone" donated over 7 grand of bitcoins to Sabu while he was an FBI informant. That was when bitcoins were measly. Perhaps they were trying to track the coins when he gave them to others. We can only speculate. The price will eventually rise...
you call it pocket change...do you realize that in time 1 btc could be worth 1 million dollars.
Already 8 decimals....
I think the majority has no clue of what will be in the future....the value will rise.
Do you realize that already so many things are bought with btc. (and I mean outside SR !!)
In the Netherlands a guy put his house up for sale for 5000 coins (240.000 euro at the time) Look it up...Capelle aan de IJsel, Holland
There are ''only'' 21 million coins guys.....mining is hard so there will be more but not that many.
The demand is growing....look what all you are doing/wanting
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:/ I bought btc myself and only received 50% of what I paid for, hope they rise again so I get atleast a small bit of what I bought. Good luck!
- JUR6 8)
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Stabilizing but continuing to drop
Personally I think they'll truly stop dropping at all around $60/btc, but this is just my speculation
And @the idea above with SR credits, I don't think it would work because it would require exposing the identity of several, none are willing to take the risk and go ahead with it
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Well back to see what was going on with the post....
Real Disappointing.....you sell a qp for xxxx bitcoins and you think your good, because you paid the 4% to hedge your order....you ship it out....and it gets finalized about 5-7 days later....any your given the bitcoin value into your account....the next day....that bitcoin is worth 1/2 its value....then it happens the next day...the down 30%....then down 25%.....and all of a sudden bitcoins are 75 bucks today......that qp I sold 5 days ago only sold for about 400 bucks.....that's right 100 a ounce..... It just more valuable to just keep the product.....it does not lose value.
If this is way the bitcoin is going to work.....I will most likely.....stop my listing....and wait till this thing stabilizes
It just not worth busting your ass....and taking huge risks....when your selling your product for half of its value.
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I could have sworn the AUD rate was about $7 higher last night, but I don't follow it as much as GBP and USD. Lol, we probably track the rates almost as vigilantly as stockbrokers do the sharemarket and foreign markets.
Piece, Love, and Fuck Haters.