Silk Road forums
Discussion => Security => Topic started by: 12345qwertasdfgzxcvb on January 31, 2013, 01:36 am
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btc have gone up by shitloads in the past few weeks, and from some of the items i were intending on purchasing soon, their price on SR hasnt really changed much, basically meaning id be paying a lot more for the same item, to the point of making it not worthwhile.
can anyone help me regarding this? am i supposed to brave it out until btc decline again or will vendors change prices to current rates?
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What vendors are not adjusting price to the increase of BTC really why would anyone buy from a vendor who product price changes everyday>?????????????????????????????????????????????????????????????????????????????????????????????
Things are getting a bit freaky here on SR
Greed = bad business
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Never attribute malice to that which can be explained by incompetence.
The likely explanation is that some vendors don't know they can peg the product price to USD.
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Good Point
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Most vendors peg their prices. If they didn't they would either price themselves out of the market to wide or to narrow.
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Any theories on what's driving the value up? Increased adoption or wider speculation?
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Any theories on what's driving the value up? Increased adoption or wider speculation?
I believe it's because of a slightly increased adoption, but mainly because bitcoins are becoming harder to mine, combined with the fact that a lot of new hardware has recently been developed, which is specifically designed to mine bitcoins faster - and this hardware is in the preorder stage right now, so in a few months a lot of people will mine a lot of coins, making it even more difficult to mine coins very fast. This is all my theory though, it's based on nothing.
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Who knows why its increasing but it probably has a lot to do with hoarding. I think there is a lot more incentive to scam from the vendor side while the price is rising so quickly too. Its a pretty shit characteristic of a 'currency' to be so volatile. Currencies need to be stable to have real worth as an exchange. At the moment bitcoin is failing in that respect.
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just checked btc prices again, and yet again they have jumped overnight by half a dollar (30p).
may not sound like much but even that 30p is going to add 50 quid to my intended next order.
total price has gone down by 0.3 bitcoin. WOW.
i hope SR sorts this, I can imagine a lot of custom being lost. i wont pay 750 for something that was 500 3 weeks ago.
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The exchange rate of bitcoins has nothing to do with mining difficulty. It is based on supply and demand. On trading platforms like MtGox, people post buy and sell orders at various prices. Let's say that BTC are currently trading for 15 USD. If a bunch of buy orders come in, then all the BTC at 15 USD will be bought up, so the next buyers will have to get BTC that are posted for 15.50 USD, then 16 USD and so on.
Conversely, if more people are trying to sell BTC than buy them, then sellers will have to post orders at decreasing prices in USD to get them sold (they are in effect competing to sell their BTC, so naturally the price will go down).
Take a look at http://mtgoxlive.com/orders
The diagonal lines indicate how many BTC will have to be bought or sold to move the exchange rate to that point. You'll notice some vertical jumps around the whole dollar marks. That's human psychology at work in the market. People are more likely to post a sell order at a round number like 20 USD, although plenty of people post sell orders at intermediate prices.
Based on all buy and sell orders, they know exactly how much BTC will have to be bought (or how much USD will have to be "bought" by selling BTC) in order to move the exchange rate to any point.
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Bitcoin is easy to manipulate as there's no regulation and transactions are essentially free. Pump and Dump is a possibility, especially if the stats that say the vast majority of BTC is horded, that means there is a much smaller amount of liquid BTC which makes manipulation easier. I hope that's not the case, I would much rather the reason for the rise be that the mining reward was halved a short time ago.
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Bitcoin is more of a product then a currency it's easily manipulated and is a simple supply and demand. Flood the market with bitcoins price goes down, not enough bitcoins price goes up.
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Bitcoin is easy to manipulate as there's no regulation and transactions are essentially free. Pump and Dump is a possibility, especially if the stats that say the vast majority of BTC is horded, that means there is a much smaller amount of liquid BTC which makes manipulation easier. I hope that's not the case, I would much rather the reason for the rise be that the mining reward was halved a short time ago.
Are you aware of the fact that there's no regulation or oversight of any kind at all in the foreign exchanges market? There are enormously wealthy individuals who take advantage of this. Except when you're fucking with the value of a third world country's dollar (or the US dollar, like those lovely banks so recently) and not a pretty little collection of 0s and 1s, people starve. At least with bitcoins chances are you aren't stealing food out of some destitute family's mouth. Maybe someday, but certainly not today.
At least Bitcoin isn't possible for several entities to maintain control over. Not that I subscribe to some sort of Illuminati conspiracy babble or anything, mind you, but there's more oversight and regulation built in to Bitcoin than the entire Forex market, I think.
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Any theories on what's driving the value up? Increased adoption or wider speculation?
Probably due to recent BTC-related events:
1. 1st ASIC miner hit US soil, tested and working by Jeff Garzik on Bitcointalk
2. Several major websites have started taking bitcoin as payment (Wordpress, Reddit, hosting.co.uk)
3. Recent articles on zerohedge, forbes, and others explaining bitcoins success, and it's threat to the central banking infrastructure
4. Obviously speculation is a big one as well. A lot of big players have resurfaced to start trading again as the price keeps going up.
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OMG, Reddit started accepting bitcoins? How the fuck did I miss that. I don't know if I really agree that this isn't just a bubble, but a lot of people seemed to say/think that once Reddit took bitcoins, that was it -- straight to $100.
... a lot of people thought a tulip was worth a house at one point too though (see http://en.wikipedia.org/wiki/Tulip_mania if you've never heard of tulip mania).
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Are you aware of the fact that there's no regulation or oversight of any kind at all in the foreign exchanges market? There are enormously wealthy individuals who take advantage of this.
Also, mainly governments. They can print more or less currency notes to manipulate the value of their currency, usually for the benefit of a few and the detriment of most.
Just ask the people of Zimbabwe about how resistant to price manipulation centralized fiat currencies are.
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OMG, Reddit started accepting bitcoins? How the fuck did I miss that. I don't know if I really agree that this isn't just a bubble, but a lot of people seemed to say/think that once Reddit took bitcoins, that was it -- straight to $100.
... a lot of people thought a tulip was worth a house at one point too though (see http://en.wikipedia.org/wiki/Tulip_mania if you've never heard of tulip mania).
Easy to miss unless you troll the bitcointalk forums as much as I do. It may very well be just a bubble, but I'm going to hold out hope for a continuing climbing price that stabalizes around $20/BTC.
Good ol' Tulipmania. The worlds first economical bubble burst. I remember reading about it and laughing the whole time that these people genuinely though those tulips would hold value.
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nice to see theyve jumped again over 24 hours.