Silk Road forums
Discussion => Newbie discussion => Topic started by: Lakey on May 18, 2013, 07:08 pm
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Is the vendor bond refunded in the bitcoin value you pay when you initially become setup as a vendor or is the bond pegged to the $ like some prices on SR so that the amount of bitcoin you are repaid converts back into the amount of $ you had to expend to purchase the bitcoins to pay the bond? Because the bond is ฿4.05 and if I buy that much to pay the bond and then the value of bitcoin crashes that could put me in a difficult spot and be a disincentive for me to become a vendor
Any help much appreciated
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Is the vendor bond refunded in the bitcoin value you pay when you initially become setup as a vendor or is the bond pegged to the $ like some prices on SR so that the amount of bitcoin you are repaid converts back into the amount of $ you had to expend to purchase the bitcoins to pay the bond? Because the bond is ฿4.05 and if I buy that much to pay the bond and then the value of bitcoin crashes that could put me in a difficult spot and be a disincentive for me to become a vendor
Any help much appreciated
Hi Lakey,
Yes, the vendor bond is paid and refunded in BTC - you get the exact amount of BTC back that you paid in: if you pay ฿4.05 for the bond, you will receive ฿4.05 back.
I understand what you're saying regarding the value of Bitcoin crashing, but the opposite is also true. You stand to gain if it rises in value. When Bitcoin hit its recent high many vendors were receiving their bond back when it was valued at $2500+.
It's HIGHLY unlikely that Bitcoin's value will 'crash' during the time that it takes you to meet the requirements for receiving the bond refund. It has reached a point of relative stability so a drop of 50% or more is very, very unlikely.
Libertas
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Thanks for the confirmation. No Hedge, so value for value BTC, if dollar is up or down your BOND is up or down.
Libertas, thanks!
Can you confirm this and reply on http://dkn255hz262ypmii.onion/index.php?topic=180010.msg1305879#msg1305879
Also!
Thanks,
BTCB
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Libertas
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I understand what you're saying regarding the value of Bitcoin crashing, but the opposite is also true. You stand to gain if it rises in value. When Bitcoin hit its recent high many vendors were receiving their bond back when it was valued at $2500+.
But even if they made the claim back at the time it was high value unless they cashed into real currency they would of gained a great amount of money but on the other hand its was the same amount of BTC it took to buy the account. So SR would not of made any real loss in the sense they paid out the BTC not the actual value.
The more i think about hedging and pegging the more im getting confused. Lols
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i agree for days we didnt hedge then we did and havnt changed. any hedging confuses me after a bit also although we understand it. if changed does it start from now or even on pending orders?
I recently had a small item double in value with hedging and i think its due to the fact the client didnt finalize so after a month the btc was up and the btc came and made me smile double for a small order.