Silk Road forums
Discussion => Silk Road discussion => Topic started by: oneiroi on April 11, 2013, 03:59 pm
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Until now i thought that there is not possible to drop down from about £170 per BTC to 50 per BTC in several hours. But as I see everything is possible, because BTC is either one big experiment or one big manipulation.
Now, as a vendor I know that for me most important things are:
-hedge escrow (recommended)
-expose escrow
Now I have the second option, and I feel that I am loosing the money. Reading all informations from forums and a guide I have such a mess in my head that I have to take 2mg of Clonazepam to calm down and drink a pint of lager, which upset me even more.
Now the question, I know I sound like noob, but what to do to save my money. How to set up SR to get always the same amount of money (£). Or maybe this is wrong way of thinking. It's like a lottery. Leave prices as they are now, and then wait what is going to happen with BTC?
Or maybe any other advice (apart: go home, you are drunk).
;)
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Don't even bother to ask mate. I bet 99% of people here have no idea what is going on. The rest of them are speculators.
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The best thing to do is all orders you had in escrow while it dropped from 160 a btc until now when its stabilized to about 75.800 when they FE i would store them coins away until the price has gone back up to the 165 mark. And believe me it will go high again ,you might just have to wait a while. And now you just got to keep adjusting your prices until its defo stabilized. ive had to change my prices 8 times today. i took a huge loss yesterday. But my prices are now the same as before the bubble burst
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I am just so confused...
I bet there is some settings for vendors then if I wanna get 100$ for some item, the price on the listing is going to adjust accordingly (automatically) in the "real time"...
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Why don't you just choose the first option and have your vendor prices in bitcoin pegged to the dollar. This is default. Or have I misunderstood your problem?
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Why don't you just choose the first option and have your vendor prices in bitcoin pegged to the dollar. This is default. Or have I misunderstood your problem?
So "hedge escrow".
I hope so.
I trust you.
You are The Pine...
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Is it ok to buy ? I already bought some items a few days ago will they be sent or you think the sellers will refund?
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Why don't you just choose the first option and have your vendor prices in bitcoin pegged to the dollar. This is default. Or have I misunderstood your problem?
So "hedge escrow".
I hope so.
I trust you.
You are The Pine...
Actually I am the Platypus. It is only thanks to the miracle of genetic engineering my paws allow me to type this. It's a little known fact that the NSA has thousands of these aquatic mammals in underground storage pools along with an extensive network of burrows, their duckbills can act as organic quantum devices allowing them to factorize large numbers into two primes exceedingly quickly. That is why when you look in their eyes they appear to be heavily concentrating. They frequently have loud raucous parties that last all night and infuriate their neighbors with an international extraordinarily secret cabal of other influential organizations including The Otter People. MJ12, Bilderberg and the FreeMasons have nothing on the Association of Aquatic Mammals. Our parties are waaaay louder, and our secrets secreter.
In all seriousness, you shouldn't trust me, only trust yourself. What do you believe, me, or your own eyes -- Groucho Marx
I think it makes a lot of sense to have your prices pegged to USD instead of BTC. Otherwise when BTC goes up your customers will be unable to afford your products and when it goes down with the same kind of volatility your customers will be getting products at a huge discount for no reason.
If you're still not sure, experiment with a small amount of product to make sure what happens is what you thought was going to happen. Then you'll know for sure without taking any serious risks.
Edited: because I said something silly. Probably not what you first thought of though. The deal with the machinations of the platypuses and subterranean tunnels under America's heartland is pretty much spot on.
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Why don't you just choose the first option and have your vendor prices in bitcoin pegged to the dollar. This is default. Or have I misunderstood your problem?
One more thing:
"If you choose to hedge your escrow balance, then you will be paid roughly the bitcoin equivalent to the dollar values of your transactions at the time they were purchased. "
Let say my intelligence is below avarage. So if i check hedge escrow for example now, and I will sell now something for 1 BTC which is now 68$ (OMFG), then I will get 68$ when the buyer release the money. But if I wouldn't do this in to weeks 1 BTC might cost 150$ and I am a looser?
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Both buyers and sellers are taking an exchange risk. Buyers who bought during the parabolic price rise were no doubt kicking themselves when they see the 1 BTC they spent was worth 5 BTC a week later, just as vendors don't like it when the price of a product in transit goes from 5BTC to 1 BTC in two days.
Is the hedge option only relevant for canceled/disputed orders? In other words, is that only for when the parties are trying to arrange a refund/resolution in order to pay out a fair amount of money?
One possible solution to the erratic BTC price swings is to keep the escrow money pegged to the USD at all times. When the order finalizes, the vendor receives the USD value of the product, not the BTC value at the time the order was placed. The buyers could be required to post some extra amount in escrow (say 50% more than the purchase price) so that vendors aren't screwed more than 50% if the BTC price crashes.
Example: Buyer places an order for a product that costs 10 BTC on day 1. On day 1, the BTC/USD exchange rate is 1BTC = 200USD. Buyer is required to put 15 BTC into escrow, and once money is in escrow vendor ships. The product safely arrives on day 5 and buyer finalizes.
Assume that on day 5, the BTC/USD exchange rate is 1BTC = 150USD. Vendor receives from escrow the original USD value of the product, i.e. $2000 or 13.33BTC. Buyer then receives the rest of his BTC from escrow, i.e. 1.67 BTC.
Now assume that instead on day 5, the BTC/USD rate is 1BTC = 250USD. Vender then receives 8 BTC and buyer is returned the remaining 7 BTC from escrow.
That system still doesn't protect against 60% crashes in BTC, but it's quite a bit of protection for both buyers and sellers.
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Until now i thought that there is not possible to drop down from about £170 per BTC to 50 per BTC in several hours. But as I see everything is possible, because BTC is either one big experiment or one big manipulation.
Now, as a vendor I know that for me most important things are:
-hedge escrow (recommended)
-expose escrow
Now I have the second option, and I feel that I am loosing the money. Reading all informations from forums and a guide I have such a mess in my head that I have to take 2mg of Clonazepam to calm down and drink a pint of lager, which upset me even more.
Now the question, I know I sound like noob, but what to do to save my money. How to set up SR to get always the same amount of money (£). Or maybe this is wrong way of thinking. It's like a lottery. Leave prices as they are now, and then wait what is going to happen with BTC?
Or maybe any other advice (apart: go home, you are drunk).
;)
The payment system bitcoin is based upon a research paper written by a computer scientist who knew fuck all about economics
You could have reduced your risk my hedging your listings but you took the other path . There are ways you can exchange your BTC for a rate above that given at the exchanges right now but very few people know about them
I suggest drinking another can of stella
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Why don't you just choose the first option and have your vendor prices in bitcoin pegged to the dollar. This is default. Or have I misunderstood your problem?
One more thing:
"If you choose to hedge your escrow balance, then you will be paid roughly the bitcoin equivalent to the dollar values of your transactions at the time they were purchased. "
Let say my intelligence is below avarage. So if i check hedge escrow for example now, and I will sell now something for 1 BTC which is now 68$ (OMFG), then I will get 68$ when the buyer release the money. But if I wouldn't do this in to weeks 1 BTC might cost 150$ and I am a looser?
Yes, that's right. Unless you wish to speculate on the fortunes of the BTC price, you should be hedging. DPR takes a small fee in exchange for offering the service of hedging, which is proper.
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Don't even bother to ask mate. I bet 99% of people here have no idea what is going on. The rest of them are speculators.
Well said
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wow
http://preev.com/ $61 dollars :o
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For now, hold on to your coins or someone else will...
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in the mean time find some thing digital to sell. Something cheap that folks would spend their spare change on. This could supplement your income and add small amounts of coin to youre wallet. Like maybe an ebook or something. Research the forums and find out what somebody would pay for that's digital. A digital item never runs out of inventory. Most of the time you can sell it just by it's name and charge like .01 btc for it and just throw it into the listings and use it for new people to get transactions or whatever. I got one or 2 I'm gonna edit out the sensitive info and sell the resell rights but you can find them for free a lot of times
But seriously it's viable to have something like that