Silk Road forums
Discussion => Off topic => Topic started by: maybejustonce on January 29, 2013, 05:44 pm
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So, the value of BTC fluctuate, much like the stock market.
So, how do vendors react? Say one day i have $70 worth of btc and then the next day, $100. At the same time, a vendor has a listing that sells for $70 worth of btc. Will their prices also rise to $100 worth of coin?
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Yeah im pretty sure thats how it works. I cant believe the btc price is up to 17 bucks usd GODDAMN
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Your information is outdated. They're at $19.50 USD.
If it's a hedged listing, then the price is in USD and Silk Road adjusts the bitcoin cost as the average price rises or falls. If the listing isn't hedged (vendor can choose which he wants), the price is in bitcoins and it doesn't change just because they cost more or less in dollars. That's the basic idea, anyway.
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Well that just proves how fast they are changing lol, i just looked the other day WTF
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So, the value of BTC fluctuate, much like the stock market.
So, how do vendors react? Say one day i have $70 worth of btc and then the next day, $100. At the same time, a vendor has a listing that sells for $70 worth of btc. Will their prices also rise to $100 worth of coin?
SR adjusts the amount ... So if a vendor wants $100 for a gram of coke, it will always be $100USD even if the bitcoins go up and down... Say a bitcoin is worth $10... than ten bitcoins would buy it.... But if a bitcoin equaled $5, you would buy 20 but it still costs $100...
Hedged vs unHedged
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Your information is outdated. They're at $19.50 USD.
If it's a hedged listing, then the price is in USD and Silk Road adjusts the bitcoin cost as the average price rises or falls. If the listing isn't hedged (vendor can choose which he wants), the price is in bitcoins and it doesn't change just because they cost more or less in dollars. That's the basic idea, anyway.
So theoretically, hedged listings are good for refunds and unhedged for purchasing.
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Your information is outdated. They're at $19.50 USD.
If it's a hedged listing, then the price is in USD and Silk Road adjusts the bitcoin cost as the average price rises or falls. If the listing isn't hedged (vendor can choose which he wants), the price is in bitcoins and it doesn't change just because they cost more or less in dollars. That's the basic idea, anyway.
So theoretically, hedged listings are good for refunds and unhedged for purchasing.
Er, I think you may be taking my statement as more accurate than I intended it to sound: I don't know the details, I was just trying to give you a sense of the basic concept. That said, I believe that when it comes to refunds and canceled orders, there's an extra snag: SR keeps a specific percentage of their fee from hedged listings whether it's canceled before processed or not. So it can look to the guy who had his order canceled as though the vendor "stole" some of his coins, because he doesn't get them all back.
But really the vendor has no control over it, and SR has to do it or people could collaborate and use the hedged listings to bilk SR for a bunch of coins -- place the order, if bitcoins go up, cancel and get more back. Etc. Something like that (again, look at the basic idea, not my specific details).