Silk Road forums
Discussion => Silk Road discussion => Topic started by: top44 on June 18, 2013, 01:14 pm
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I have this query many weeks now, why SR is so slow to keep up with current exchange rates??
I mean, this moment its $107.7 at mtgxos, and today is an UP day for bitcoin price. The same time at SR $103.37555 per Bitcoin.
I wonder how long actually it will take for SR today to show the price at 107..
edit: 111 and goes ... :P
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It's not slow. It uses the 24 hour average to smooth out big price fluctuations. As you said, BTC went up today, so the average over the last 24 hours will be lower.
SR will use $107 if and when BTC prices are high enough to make the 24 hour average $107.
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Oh man...I can't believe this is still not understood by EVERYONE. And for those of you that do not understand this...it would always be best to do a search for this instead of writing a post and starting yet another thread on this. It is also explained int he SR Wiki.
But the fact is you did write it and you do not understand...and you are not the first or last person...so here it go's again!!
Also to the mods....this is one thing that should be a sticky FOR SURE!!! So many people do not get this and with new members always coming in..there will always be a need to answer this...and for any of us that have been here more then 2 months...we have seen this question/thread 10000 times so the need for a sticky is there...
So to the OP her is the answer :)
Silk Road is NOT SLOW! Not at all! In fact the system they use now is actually very good and is the best it could be for the community. Meaning for buyers and vendors.
SR is on a 24 hour weighted average from Mt.Gox. It is updated continuously. So just to use the numbers you reported I will try and explain it to you.( so this is just an example)
As of right now on Mt.Gox the price per coin is 107.7 and right now on Silk Road it is 103.37555...
So that means in the last 24 hours the average price is 103.37........and therefore the price for coins on SR is so. Since the coin fluctuates so rapidly and easily it HAS to be done this way. It was not always done this way and when it was done off the current price of Mt.Gox it was a nightmare. So once you understand how the 24 hour average works you can predict where the price on SR will be and use this to your advantage.
Also realize that the btc over the last 8 weeks has been very steady until about 10 days ago...but even then it has been from $130 to I think $95 maybe lower and maybe higher but either way it did so very slowly in the btc world.
Realize that 99% of us just use these like we had to use tokens for arcades back in the day...and as long as you buy them and use them at the same rate it makes no difference what the btc price is...and in this actual case if you just bought coins at 107....you can wait for a few hours and the SR price will be 107...or even higher...and there is a slight chance (less then 1%) that it go's below $103...but again if it was to go lower you would "know" ahead of time and you could use your coins accordingly. Just like if it is to go up later in the day...you could wait and use it to your advantage. So once you see this and play around with it...you will realize just how great the SR way is.
I would suggest that you do a search for btc on Silk Road in this forum...and you will find a long post explaining what I just said in great detail...I am just to lazy and too tired to write another one...and to lazy to search for the post(s) I have already made that went into great detail explaining everything and post the link to the thread...though I totally should have as it would have taken less time then this rambling post. But I think you at least get the point....or I hope you do...and that is that Silk Road does a fantastic job in how they manage the BTC pricing. I can assure you that if there was a better way..and when there is a better way...it will be done. But for now...and for over the past year...when we have seen prices from $4.50 to $260+ that DPR has done an amazing job with this and truly does not get enough credit for the system he has put in place.
Nothing is perfect...but this is one thing that Silk Road is doing a fantastic job of. DPR really has this system down.
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i really thank you for the replies, well explained, it makes total sense. Though i am a member for over 3 months, i know understood that it is not a delay, but a 24hour based average
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I honestly hate this system. It may not affect people with small transactions but it really kills the big purchasers. I remember SR would sync with MtGox in less than 15-20 minutes and there was never a problem.
Just so you folks can get a grasp of a real life situation that happened to me several times. I purchased 40 bitcoins @ 106. I move them over to the road for a purchase..... I put them in my cart and SR says they're only worth $4120($103/e)...I bought them for $4240. Many folks may not think that $3 difference matters but for people making big purchases, which many do, it is a real killer and it sucks.
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I honestly hate this system. It may not affect people with small transactions but it really kills the big purchasers. I remember SR would sync with MtGox in less than 15-20 minutes and there was never a problem.
Just so you folks can get a grasp of a real life situation that happened to me several times. I purchased 40 bitcoins @ 106. I move them over to the road for a purchase..... I put them in my cart and SR says they're only worth $4120($103/e)...I bought them for $4240. Many folks may not think that $3 difference matters but for people making big purchases, which many do, it is a real killer and it sucks.
As someone who buys moderate-to-large amounts my advice is to always over-estimate how much BTC you need and keep a relatively close watch on how the exchange rate has been going for the last day or two. I honestly think things would be much more of a mess if they didn't use the 24-hr weighted average. In fact if they used a 5 minutes weighted average we would still have people complaining that "it should be a 1 minute weighted average". If you look at how Tor works and how much of a load we want the SR server to take on, 24-hr weighted average works fine, IMO.