Silk Road forums
Discussion => Silk Road discussion => Topic started by: NicMod on January 31, 2013, 06:32 pm
-
Say i sold something 10+ days ago for 1 BTC when the BTC price was at $14. The funds have not been released yet.
Say the person released the funds today. Would I get the old BTC value of $14 or the new price today at $21 BTC?
-
You'll get the price paid at the time. Basically, it depends on whether it's hedged or unhedged. If it's unhedged, you get the bitcoins that are in escrow. Whatever they're worth, millions, dirt, doesn't matter -- that's what you get.
If it's hedged, you get an amount of bitcoins that corresponds to today's price (what's in escrow is the USD, unlike the other situation, which is holding BTC in escrow -- so either way, you get bitcoins... but hedged means you get today's price minus fee).
Edit: wait... I may be wrong about that. Consider the 2nd part iffy until someone else confirms or denies it.
-
Wow this hurts muh head to think about it.. . ow
but you still get drugs in the end, right? haha
I think you are right. It has to be hedged or not. Most do hedge prices and its reflected in the end.
-
How do you find out if it is hedged?
-
How do you find out if it is hedged?
When you select any item on a vendor page or from the main menu, it appears in your shopping cart, there is a column showing which orders are hedged and which unhedged. At this point you still have the option to delete the item from the cart, if you don't like that it is unhedged.
Without getting too technical, hedging is just insurance that you don't lose your shirt (or profit insanely) from a sudden massive shift in the value of BTC it effectively freezes the exchange rate for you and the vendor at the time of the deal being made.
The higher BTC go the more drugs ultimately your fixed amount of BTC will buy, they can't raise prices just because the value of BTC go up, in fact your prices should come down a bit (in BTC) you can (and we prefer to) see the SR wallet expressed in USD, this keeps you focused on what you're REALLY spending to get those goodies.
There once was an incident where Mt. Gox (IIRC) was compromised, and BTC tumbled to about 2c THAT was the time to buy as many as you could afford. :D