Silk Road forums
Discussion => Silk Road discussion => Topic started by: werdwards on December 25, 2011, 05:55 pm
-
For example, let's say I buy 5 bitcoins when they were valued at 3.25. I now have 16.25 in bitcoins. The value of bitcoins go up to 4.00, so I have 20.00 in bitcoins. What difference does this actually make? When the value of a bitcoin increases, does the bitcoin price for a listing on SR decrease?
-
yes
-
Vendors can choose to tie their price to bitcoins (rare) in which case it will cost the same amount of bitcoins regardless of the exchange rate; or vendors can tie their price to the US dollar. In that case the price of the product is always the same in dollars but you have to spend different amounts of bitcoins to purchase. In your example, you would be able to buy more product with your bitcoins after a a rise in value.
-
Firstly sellers can chose to tie products prices to USD or Bitcoins, in the former if the value of bitcoin changes then price (in BTC) will fall or rise but the USD price remains constant. Silk road do offer the ability to just set a certain cost in BTC and let it stay at that regardless of BTC changes, I can't see any reason for a seller to use though.
So yes, for pretty much all items you are right, if the value of BTC in USD rises then the listing price will decrease, this can be good if you buy BTC then in the hours of transferring it to here and then it's worth more meaning you can either get more for your money or sell the left over.
-
Little off topic but this is an interesting article on Bitcoin Economy in general -
http://www.economist.com/blogs/babbage/2011/06/virtual-currency
Peace,
DigitalAlch
-
[quoteI buy 5 bitcoins when they were valued at 3.25. I now have 16.25 in bitcoins. The value of bitcoins go up to 4.00, so I have 20.00 in bitcoins.][/quote]
werdwards...you're really close. The amount of Bitcoins never changes. In your example you will start off with 5 Bitcoins and even as they go up, you will still have 5 Bitcoins. It;s the Value of each Bitcoin that changes.
Buy 5 originally@ 3.25= $16.25
The 5 go to 4= u will have a total vakue of $20
If those BC went to 50.00, tiy would still have 5 BC's, but value would be $250
-
This is a really interesting thread, especially for those of us that are quite new.
I assume with BC at over $4 at the moment, they have gone up in value...I am just assuming that.
So do people tend to get the BCs when needed, or buy a load as they may be going up in value?
-
People usually purchase BTC 's as needed....
-
IMHO, If one was smart, You could send in a Money Order every month for X amount of dollars and gather BC's as though they were nuts. If you can be disciplined Not to spend too much, you can watch your nuts eventually grow to 6 -7 dollars per BC.
-
bitcoins are gay and they are a scam
-
bitcoins are gay
This is always a good argument in economics. It's a little known fact that Adam Smith's "An Inquiry into the Nature and Causes of the Wealth of Nations" was originally going to be called "Centralized Economies Are Gay".
-
Well..BC may seem Gay. But there are lots of potential dealing right Now trying to make BC very much involved involved with Credit Card Transactions. It"s a waays away and CC Companies may Not want to deal in Bitcoins, but may eventually have to due to security and fraud. The 100+ BC I bought in early December I got for 2.33 a piece. Now at 4.20+...I gues I'm happy with alll the Gayness of it
-
i dont know what gay means but it doesnt sound good. I think bitcoins is great thing and a way for the future. it seems to be working perfect here.
-
i dont know what gay means but it doesnt sound good.
This is the face of homophobia.
-
The basics are you gotta spend bitcoins and if you wanna buy from Silk Road there is alot of selection but you gotta pay the high high price
-
[bitcoins are gay and they are a scam
/quote]
@2drpvmd and Horizons...I was merely playing off what Holy Frye had said.
-
Quote from: drpvmd on December 31, 2011, 11:33 am
i dont know what gay means but it doesnt sound good.
"This is the face of homophobia."
I dont have a problem with gay people..... but I dont what I would do if i saw 2 gay bitcoins
-
Quote from: drpvmd on December 31, 2011, 11:33 am
i dont know what gay means but it doesnt sound good.
"This is the face of homophobia."
I dont have a problem with gay people..... but I dont what I would do if i saw 2 gay bitcoins
I've never even seen a straight bitcoin.
-
Good Point. I'm of Opinion that Bitcoins are Pansexual.
-
It's from a Christmas carol. Don we now our gay apparel. Fa la la la la. They sure were happy back in the day. :P Is it wrong that btc turn me on? I feel so dirty.
I don't believe that anyone fully understands the btc economy or any other complex economy for that matter. People can make educated guesses and sometimes they're right, but there are just so may variables, interdependencies, and unknowns that even the smartest economists and fastest supercomputers can't accurately predict what will happen. It's kind of like predicting the weather. Unless you know the positions and energies of every molecule in the atmosphere, it's impossible to predict with 100% accuracy. A small updraft might become a tornado or just a big cloud.
Our emotions play a big role too. So you can't just rely on some fancy equations to figure everything out. If people feel the economy is good it will tend to get better and the opposite is also true. It's almost like a living organism. Even the folks in government who are supposed to know what's going on don't have a clue most of the time and just try different things to fix the problem until one of them hopefully works.
Someone said it's the volume of trading of btc or any currency that drives the value up. I said demand for btc was driving the prices up which is related to increased trading volume. The trading volume will likely go down this month after the holiday season so the value should also go down. That is my prediction which is probably as accurate as someone with a degree in economics. Because they don't know what the fuck is going on either, otherwise our economy would be fixed by now.