Silk Road forums
Discussion => Silk Road discussion => Topic started by: nbalance2 on June 19, 2011, 06:50 pm
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Prices on SR right now are inflated because MTGOX was either hacked or someone sold a ton of coins, so BTC were trading at all the way down in the cents/few dollars per coin range--so that's why an 1/8th of weed right now is priced over $100.
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Also see: https://support.mtgox.com/entries/20208066-huge-bitcoin-sell-off-due-to-a-compromised-account-rollback
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Why would that change the price of weed? Dont you be peg your prices to the Dollar, not the bitcoin since BTC is so volatile currently?????
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Yeah ive noticed this bunk flaw.
Does anyone know when it will be fixed?
Hopefully it is and somewhat soon.
Stuff just keeps getting fishy hmmm
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It said on the mtgox support page that they will be resetting the price back to $17.5 at around 1am tonight.
I think its a bad idea for SilkRoad to continue using mtgox for its price conversions since they have proven to be untrustworthy with security.
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Why would that change the price of weed? Dont you be peg your prices to the Dollar, not the bitcoin since BTC is so volatile currently?????
Yea, almost all the sellers peg their prices to the dollar, but when the exchange rate on MTGOX dives to below $1/coin it spikes all the prices on SR to compensate. It looks like a wealthy MTGOX account was hacked and the hacker sold thousands of coins for $0.01. They're rolling back all the transactions to just before this occurred and everything should be back to normal in the next 12 hours. So after MTGOX fixes everything and SR syncs its exchange rate with them, the prices should be back to normal.
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Wouldn't it be a good idea to use smoothed prices from http://bitcoincharts.com/ rather than prices from mtgox?
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+1
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If you'd be really good you'd write a page that takes in all BTC Exchanges and BTC-OTC, that would give you a halfway decent picture of what's going on. Also Bitcoincharts does fumble too, as they said bitmarketEU was lower than mtgox which is not true with current exchange rates. But that's just my take.
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I'm confused.
SR's prices are currently set at an exchange rate of 1BTC=$17.50USD.
Are vendor's accepting this rate? With MtGox still down, it seems unusual for SR to establish an accurate exchange rate.
Am I missing something?
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That's the way SR is ran, when MtGox reopens the true btc rate will auto correct itself in the next few days.
If the vendors weren't excepting those prices they would pull their listings. :D
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Yea, please use bitcoincharts.com for now on.
Tradehill is currently the highest volume exchange running and it's latest price as of this post is 11.69. It's going to be a real pain in the ass to have to keep adjusting my prices to keep up with the real value of bitcoin..
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We are trying to stay on top of things but give us a couple of days. We did end up canceling some orders that were made witht eh invalid pricing. We do follow though on sales, even at our own great loss (as shown by Black Friday) but we consider orders when the system is down as exploits and do not feel obligated to honor them. Ordering 20 1/8th for $5 each is not going to work.
More information on our user page and FAQ
GreenCo
http://ianxz6zefk72ulzz.onion/index.php/silkroad/user/1647
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I don't understand how this could have negatively affected you, if the all the price did was skyrocket down... either you have your listings pegged to the value of a bitcoin, in which case your prices would be extremely high and no buyer in their right mind would buy, or you have it set to a flat bitcoin value, in which case you still get the same number of bitcoins, and they should be the same value (assuming the market recovers) when you cash them out.
Or do you mean you are holding off on filling orders right now until you see how the market reacts to this (I wouldn't blame you if you did)? I'm confused.
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I don't understand how this could have negatively affected you, if the all the price did was skyrocket down... either you have your listings pegged to the value of a bitcoin, in which case your prices would be extremely high and no buyer in their right mind would buy, or you have it set to a flat bitcoin value, in which case you still get the same number of bitcoins, and they should be the same value (assuming the market recovers) when you cash them out.
Or do you mean you are holding off on filling orders right now until you see how the market reacts to this (I wouldn't blame you if you did)? I'm confused.
I suspect that most suppliers have elected to post product that is pegged to USD exchange rates, which makes them artificially high when BTC drops. If I were a seller in this time of market volatility (and it's been bad since the press came out), I'd definitely be pricing my products relative to the stable currency (USD) rather than the one that changes constantly. I wouldn't want to list an eighth of weed for 2 BTC and have it be worth either $60 or $20 depending on the time of day. Sellers are still taking a risk, because they won't be able to cash their bitcoins out until the transaction is complete - which really begs for a futures market, but that's a different question...
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Yeah, I don't really give a shit about the value of the Bitcoin, since the cost in Bitcoins is scaled to the USD list price. The day-traders can panic about it being devalued, I just use it as an intermediary to USD. What are we, FOREX traders? No.
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GreenCo are not speculators. They do everything in dollars and switch out. During the weekend Bitcoin went to zero and now it is at like 13-14 on trade hill. Silk Road auto-adjuster is still down.
Silk Road has been down 4 times in the last 10 days and for more than 50% total downtime. GreenCo lost tons and tons of money in escrow and shipping delays. People bought 1/8ths for 1 and 2 btc that are now worth like $15-20 and still stuck in escrow
GreenCo members have been on Silk Road since the first week, but this was pretty hard on them.
There are plenty of people who see bitcoin as an investment. It is probably a good one, but GreenCo has to pay people, buy food, pay for their kids' college. It's a business to them.
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People bought 1/8ths for 1 and 2 btc that are now worth like $15-20 and still stuck in escrow
Let's be fair. Market volatility affects both sellers and buyers.
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@techlord it certainly does. However Buyers chose when to make the deal, Sellers have to wait 5-10 days to get money out of escrow and have less choice about starting conditions. That is a much harder prediction. Even if you are a bitcoin investor and think value will generally go up crashes are steeper, more dramatic, and less predictable then climbs. (I am talking historically and not just for bitcoin but stock market, gold, tulips or anything).
Risk is fine if you are using small amounts of money to buy something you want. If your livelihood depends on it then any gains or losses are unwelcome volatility.
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@techlord it certainly does. However Buyers chose when to make the deal, Sellers have to wait 5-10 days to get money out of escrow and have less choice about starting conditions. That is a much harder prediction. Even if you are a bitcoin investor and think value will generally go up crashes are steeper, more dramatic, and less predictable then climbs. (I am talking historically and not just for bitcoin but stock market, gold, tulips or anything).
Risk is fine if you are using small amounts of money to buy something you want. If your livelihood depends on it then any gains or losses are unwelcome volatility.
There is nothing preventing a seller from offering only smaller sale items to mitigate his own risk. If that is really his primary concern.
The way I see it, we're all going to win some and lose some. It's the risk we all share for being early adopters. Personally, I'm having a blast. I'm going to tell the grandkids about this some day.
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If you want to be a respected customer you'd offer to pay the difference. I know I'd prefer to sell to someone repeatedly if they were known to be a fair buyer. There's no point putting a seller out of business due to exchange fluctuations, that doesn't help anyone.
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If you want to be a respected customer you'd offer to pay the difference. I know I'd prefer to sell to someone repeatedly if they were known to be a fair buyer. There's no point putting a seller out of business due to exchange fluctuations, that doesn't help anyone.
Would "respectable" sellers offer partial refunds or credits to buyers that overpaid because the market went bull? Yeah, I didn't think so.
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Quote hasn't been working for me so I'll just copy paste:
"Would "respectable" sellers offer partial refunds or credits to buyers that overpaid because the market went bull? Yeah, I didn't think so."
That's a good point. I've overpaid for bitcoins, then had to buy MORE bitcoins because the price had changed while I was waiting for funds to transfer. but that is not the seller's fault so I just deal. Everyone takes losses at times, it's just the way the market is. just like if you buy into the stock market. I would never intentionally try to screw over a seller, just as I wouldn't want to be screwed over.
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PLEASE SR stop using the MTGOX exchange system! Maybe if enough of us voice our concerns they will change this. esp now that its frozen.
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PLEASE SR stop using the MTGOX exchange system! Maybe if enough of us voice our concerns they will change this. esp now that its frozen.
Yeah, maybe run a parsing bot in #bitcoin-market on freenode and (after doing conversion via google) average that. Would be far more realistic than gox.
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If the value of BTC dropped in half in the period from when the order was placed to when the payment was taken out of escrow then the seller is out a fucketload of cash. You're right, buyers would not care, but if it meant losing a reliable source then I know I would be concerned with the situation. We can't all be bastards all the time. Going the other way, sellers could be generous with their measuring if the BTC price doubled after the order was placed. And their is plenty of evidence around that we have sellers who are top notch.
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Just to be clear, it's not the volatility that concerned me, it was the discrepancy between SR's exchange rate and the popular market exchange rate, which at the time was nearly 40%!
SR has fixed this issue (Thank You!) so I am no longer worried. MTGox will return, new exchanges will gain popularity, BTC will continue to gain influence, we will all be rich.
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Sorry for the confusing and offputting $100.
Our 1/8oz (3.5g) price is $50-60 usd depending on strain and what not.
Any other price is due to some other glitch, downtime, delay in the auto adjuster, or some other contributing factor outside of our direct control. We try to manually get around glitches when we can. Prices are weird now because MtGox and the Silk Road auto adjuster are both down. Expect orders to normalize once MtGox comes back up.
We expect to be back to buisness as usual by Monday the 27th.
Check out our profile page which includes a FAQ and updates
http://ianxz6zefk72ulzz.onion/index.php/silkroad/user/1647
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I am a new vendor and Im waiting til the Bitcoin stables a bit. I will be posting my product(s) in a few days. But, I won't be one of those vendors that cancels an order because of the value. Im new, so, Im having to generate some trust....