Silk Road forums
Discussion => Off topic => Topic started by: Geyser on December 21, 2011, 01:49 am
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I know a lot of people want bitcoin to level out at a 1BTC : ~1USD ratio, but personally I like the bitcoin prices being higher (so i can buy off of here for the least amount of btc possible).
What are your views on this? I figure some people agree with me, you mine more, you get more for what you mined when the price is lower, etc.
Thoughts?
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the price of bitcoin depends on the level of sales in Silk Road. If Silk Road gets shut down, its basically time to dump all of your coins. The price of bitcoins right now is quite high due to the Christmas season. It will start falling next month.
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The price of bitcoin is barely impacted by silk road.... bitcoin is bought, sold, and traded for many alternate chains. The market is most affected by miners (the people who discover bitcoins) who dump tens of thousands of them on the market at once - or hoard them.
You all know that you can use your computers to "Find" bitcoins, don't you? I have 4 machines mining them and have discovered 1.7 bitcoin today.
By the way, BTC prices are expected to hit around 7 before they start to fall - but will balance out around 1.5-2X the cost to mine (which is about $2 per bitcoin on average - so $3-4 per coin price) if it drops below that, miners will hold on to them and cause the price to climb again.
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The price of bitcoin is barely impacted by silk road.... bitcoin is bought, sold, and traded for many alternate chains. The market is most affected by miners (the people who discover bitcoins) who dump tens of thousands of them on the market at once - or hoard them.
You all know that you can use your computers to "Find" bitcoins, don't you? I have 4 machines mining them and have discovered 1.7 bitcoin today.
By the way, BTC prices are expected to hit around 7 before they start to fall - but will balance out around 1.5-2X the cost to mine (which is about $2 per bitcoin on average - so $3-4 per coin price) if it drops below that, miners will hold on to them and cause the price to climb again.
Oh I know, I have a bithopper server running with me and a few friends mining it. Quite fun.
And ya, bitcoin was NOT designed for silkroad, more like the other way around..
I think higher bitcoin prices are better for us on silkroad for miners (me, you lazym) because we can mine less and get more (always a good thing).
The high bitcoin price is because of christmas, yes, but just because it goes up because of christmas, doesn't mean its going to go back down after christmas is over.
I just never understand why some people want bitcoin to be lower?
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People who trade it LOVE to watch it go down, because they know it'll go back up. ;)
I mine bitcoin and litecoin, and trade between them to increase my bitcoins as the markets fluctuate.
unfortunately (or fortunately, depending on how I look at it!) I discovered SR, and my wallet has been empty ever since! ;)
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So, how does this impact us? Vendors are (hopefully) going to change their prices to reflect the price of the Bitcoin, and we end up paying the same amount of money. I mean, that's what it looks like to me. Am I wrong?
On a separate note, isn't the vendor activation fee a set 50BC? SO it's going to become increasingly more expensive for new vendors to join up?
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So, how does this impact us? Vendors are (hopefully) going to change their prices to reflect the price of the Bitcoin, and we end up paying the same amount of money. I mean, that's what it looks like to me. Am I wrong?
On a separate note, isn't the vendor activation fee a set 50BC? SO it's going to become increasingly more expensive for new vendors to join up?
No no no. If there is a posting for 1 vicodin for 1BTC while the price is at 4USD, then if the BTC goes down to 2USD, the vicodin should then be worth 2BTC. The bitcoin price fluctuates with the price.. As far as I know anyway. I could be wrong as hell. But that just seems right to me
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Not sure what you're saying, unless you are implying that the price listed will automatically update to reflect the value of the product in relation to what it was when it was posted, taking the fluctuation of the BC into account?
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Not sure what you're saying, unless you are implying that the price listed will automatically update to reflect the value of the product in relation to what it was when it was posted, taking the fluctuation of the BC into account?
Ya, that's what I mean.
Code:
For example:
BTC = 4USD
Pill = 1BTC
Then, say the BTC price goes DOWN to 2USD. The pill should now be worth 2BTC.
Right?
I could be wrong I guess, but that just seems logical to me. If the BTC value of "Pill" just stayed solid no matter the cash value then the vendor could be over or under charging (depending on the circumstances of the BTC price ( ^/ v ))
Someone correct me if I'm wrong.
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Alright yeah, we have the same idea. I'm just asking whether it's automatic, or if the vendors need to change their listings based on the BC.
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It's automatic. Prices are pegged to USD, and a 24 hour floating average is used to convert them into bitcoin prices.
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It's automatic. Prices are pegged to USD, and a 24 hour floating average is used to convert them into bitcoin prices.
Thanks for clearing that up!
Have a great day.
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Yay BTC is no longer falling like a drugged out hooker with vertigo : )
Peace,
DigitalAlch
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Does anyone here feel like BTC should be worth less? I'd like to know why you feel that way.
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Two other options are to use bitcoin-otc.com (an "over the counter" market for bitcoins)
or to find people on one of the exchanges - This morning I bought 5 bitcoin via paypal from someone I met on one of the exchanges - they typically want a premium price (I paid $4.25 each) due to the risk involved.
Geyser: I think that the current price of bitcoin is very fair. The cost to mine a bitcoin is about $1.80 - just for the power used, the hardware is a whole other story! For example, a friend of mine has a $40,000 mining rig (an array of computers with 6 GPUs each) that mine about 20 bitcoin per day20 - his power bill is about $1080 per month for these machines. if bitcoins were $3 each, he'd make $1800 a month - $720 "profit" , but it'd take 55 days to pay off his machines. At $4 per day his break-even time is down to about 1 month.
As a miner, I'd love the price of bitcoin to go up - $5 would be perfect for me.
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Two other options are to use bitcoin-otc.com (an "over the counter" market for bitcoins)
or to find people on one of the exchanges - This morning I bought 5 bitcoin via paypal from someone I met on one of the exchanges - they typically want a premium price (I paid $4.25 each) due to the risk involved.
Geyser: I think that the current price of bitcoin is very fair. The cost to mine a bitcoin is about $1.80 - just for the power used, the hardware is a whole other story! For example, a friend of mine has a $40,000 mining rig (an array of computers with 6 GPUs each) that mine about 20 bitcoin per day20 - his power bill is about $1080 per month for these machines. if bitcoins were $3 each, he'd make $1800 a month - $720 "profit" , but it'd take 55 days to pay off his machines. At $4 per day his break-even time is down to about 1 month.
As a miner, I'd love the price of bitcoin to go up - $5 would be perfect for me.
Ok, I understand what you are saying. I'd like $5 too, but i wouldn't mind it hitting 10-15 either :)
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Wow you guys really seem to know alot about bitcoins.
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The more I think about it, the more it seems that the exchange rate only matters in a few instances:
1) You are a miner. Obviously more value for the same cost of "mining" is better
2) If you are sitting on a lot of BTC
3) You play the market
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Geyser,
Value of BitCoin is based on Volume. Supply and Demand usually Do Not Impact Currencies. Like The U.S. Dollar, which is a Note, can appear from thin air, so do BC's. Many Moons ago I used to Trade Paper. I'm very familiar with Patterns. Anyway, if you look at the recent Trend Of BC's, you will see that Twice, BC's broke through 3.11. This is called a Head & Shoulders Pattern. The great thing here is that there was a 3rd Attack past 3.11 and it made it! This is great news! Usually when you see a pattern like this, you can affirm that 3rd Try is The Charm. If I were me, I would buy as Many BC's right now as I can. Try not to spend too many as I really feel BC will travel further up. Add to that, let's just say on a Particular Date, close time range, everyone of like mindedness Bought BC's. Be it 1 or 10 or 100 Bc's. That would bust BC's Nutz and who knows how far BC could go. If you want to get fancy, you can use CampBx, which allows you to Buy on Margin and Execute "Limit Orders." Granted, unless you know what your doing, I wouldnt dabble too much. Good Luck to All!