Silk Road forums
Discussion => Newbie discussion => Topic started by: Amoking on February 24, 2013, 01:56 pm
-
Hello,
First time poster and total noob here. I'm trying to understand how the road can operate when 1 bitcoin is currently about £20? You pay for quality and so on but these prices are not competitive in the 'real world' market, so can someone please explain to me how the market is fluid?
Also should I wait to buy Bitcoins now or wait until they are a little cheaper and thus SR vendors are more competitive with 'street' vendors, allowing them a premium for quality/anonymity etc.
I am new to this and have been doing some research but still don't fully understand the system so I appreciate your help!
-
Most vendors have prices pegged to USD.
BTC fluctuation will not matter as long as you spend them right away.
-
What acider says is correct, the price of bags in btc goes down as the cost of btc rises.
so its all good bro, fluid and loosey goosey, come n get some.
Be careful, Be Free
-
The road can operate almost no matter what the price of bitcoins is. Of course if they were worth 0 or close to it, then it would be impossible to acquire enough to have enough value for a transaction. But the price going up can only be a good thing for SR. I am not sure the exact number of bitcoins that have been mined so far but I believe over half the possible coins have been mined so far, and the amount of bitcoins will never reach more than 21 million from my understanding. So lets just pretend there have been 10 million bitcoins mined and they are worth 30 dollars a piece right now. That means there are 300 million dollars worth of bitcoins out there. Naturally as bitcoins become more popular, the net value of all bitcoins will go up as will the price of one bitcoin. People will just switch from using bitcoins to using microbitcoins, or a smaller denomination of bitcoins. But the effect of a higher price will only mean more stored value that can be used on Silk Road.
Imagine if the price of bitcoins went down to 1 cent, this would mean there was only 1 cents x 10 million = $100,000 worth of bitcoins out there. It would be hard for the road to operate with such a small price for bitcoins because the volume of transactions would probably be greater than the entire networth of all bitcoins in existence. But of course market forces would never allow this to happen. The demand and price for bitcoins would increase because people would need them for the Silk Road. So maybe the price going up is just a reflection of both bitcoin's success and Silk Road's success.
-
In fact there are already LTC - LiteCoins out there and i believe one orr two other smaller denom crypto-currencies.
though my knowledge on them is very limited
-
Just trying to get to 50 posts!
-
My My Petimus,
Welcome, make yourself at...oh
bye then
you're going to fit right in here
-
Every vendor on the road pegs their listings to the $US. It's an option you can select when you set up a listing, but it wouldn't make any sense to create a listing that wasn't pegged to the dollar. If you did and the rate changed, either the prices for your products would go up and you'd lose business, or your income in dollars would drop.
But it sounds like what you're really complaining about is that you think prices for drugs on SR are too high (the bitcoin price doesn't impact you at all -- it's the price plain and simple). And depending on where you live and how easy it is to find and buy drugs locally, SR may in fact be an expensive place to buy drugs. I live in Northern California and no one in their right mind who lives around here would buy weed on SR -- they would be paying 30% too much. But for people lving in other parts of the U.S., weed on SR may be reasonably priced compared to local supplies.
But speaking as a vendor, I can tell you that there is an obvious reason why you shouldn't expect to find cheap drugs on SR. DPR is a middleman in every deal on SR. Vendors pay a pretty substantial commission to the people who run SR on every sale, and that cost gets passed along to some extent. But I think that commission is well deserved. There are all sorts of advantages to doing business here including the escrow, the community they have created here, the resolution center, never mind the site infrastructure. A lot of people think it's worth paying a premium for those services. I'm a regular purchaser on SR as well as a vendor and I wouldn't do it any other way.
-
Exactly.
Join Us....
-
I'd agree, SR is worth the extra cost. It's delivered to your doorstep, !! Now that's service. Not to mention the packaging costs to pass inspection and pass through the mail, the cost of shipping - it's worth an extra 10-20% or whatever. I'm glad to pay the extra cost and enjoy delivery to my doorstep safe and sound. Quite a premium service if yu ask me. First class all the way.
-
Yea
zzz
-
not sure if it is allowed, but here link to the ""Silkroad"" for litecoin
[CENSORED: scam link]rky4es5q.onion/about
by the way bitcoins instant and very easy to change to litecoins on www.btc-e.com
-
Just trying to get to 50 posts!
It appears that you have succeeded beyond your wildest, considering that you're at 70 as of this posting...!
-
Bitcoin FTW