I was discussing yesterday in comments about how Silk Roads price hedging system means it prices products against the MT.Gox weighted Avg price and how now that bitcoin prices can fluctuate by more than $100 in a few hours this system can be open to some abuse.

At least that’s what I found when I seen my bitcoins were still worth $200 - $210 there when the price had crashed to $150 yesterday.

I did some more digging on their own forums to either clarify or disprove my theory and seems at least for the time being one bitcoin is worth $162.22 while bitcoin is currently trading between $60 - $80 on the exchanges that are trading so it's basically like a half price sale on most products there and last time I checked most sellers use the hedging feature to minimise their own exposure.

Below is some info from Silkroad on how hedging works on the site. It exists to protect both the seller and buyer there so if there is a loser in this it would be Silk Road but since they make 10% and charge something like 3% to use the hedging feature I think they wont lose out too much on it Smiley

Unhedged escrow:- Buyer places an order for 1BTC and 1BTC is in escrow. When buyer receives their good 1BTC is released to the seller regardless of BTC price. In the event of a dispute any refunds will be calculated on the bitcoin. For example a 50% refund is agreed the buyer will receive 0.5BTC and the vendor will receive 0.5BTC.

Hedged escrow:- Buyer places an order at 10am on 25 March 2013 for 1BTC@$100 (MT.Gox average) and $100 is in escrow. The buyer receives their goods on 27 March and the bitcoin price has up to $200. 0.5BTC ($100) is released to the seller. In the event of a dispute any refunds will be calculated on the dollar. For example a 50% refund is agreed on 27 March 2013 where the bitcoin price is $200. The buyer will receive 0.25BTC ($50) and the vendor will receive 0.25BTC ($50).

For all those who are morally opposed to silk road it's also much more than drugs and illegal’s these days too so please don't downvote this because you hate the site, That’s not the issue here Smiley

but 4:20 is only a week away and I only got 0.3 BTC right now so any tip would be so so welcome if you get a deal there Smiley

If anyone has questions I'll check in to answer shortly

I was discussing yesterday in comments about how Silk Roads price hedging system means it prices products against the MT.Gox weighted Avg price and how now that bitcoin prices can fluctuate by more than $100 in a few hours this system can be open to some abuse.

At least that’s what I found when I seen my bitcoins were still worth $200 - $210 there when the price had crashed to $150 yesterday.

I did some more digging on their own forums to either clarify or disprove my theory and seems at least for the time being one bitcoin is worth $162.22 while bitcoin is currently trading between $60 - $80 on the exchanges that are trading so it's basically like a half price sale on most products there and last time I checked most sellers use the hedging feature to minimise their own exposure.

Below is some info from Silkroad on how hedging works on the site. It exists to protect both the seller and buyer there so if there is a loser in this it would be Silk Road but since they make 10% and charge something like 3% to use the hedging feature I think they wont lose out too much on it

Unhedged escrow:- Buyer places an order for 1BTC and 1BTC is in escrow. When buyer receives their good 1BTC is released to the seller regardless of BTC price. In the event of a dispute any refunds will be calculated on the bitcoin. For example a 50% refund is agreed the buyer will receive 0.5BTC and the vendor will receive 0.5BTC.

Hedged escrow:- Buyer places an order at 10am on 25 March 2013 for 1BTC@$100 (MT.Gox average) and $100 is in escrow. The buyer receives their goods on 27 March and the bitcoin price has up to $200. 0.5BTC ($100) is released to the seller. In the event of a dispute any refunds will be calculated on the dollar. For example a 50% refund is agreed on 27 March 2013 where the bitcoin price is $200. The buyer will receive 0.25BTC ($50) and the vendor will receive 0.25BTC ($50).

For all those who are morally opposed to silk road it's also much more than drugs and illegal’s these days too so please don't downvote this because you hate the site, That’s not the issue here

but 4:20 is only a week away and I only got 0.3 BTC right now so any tip would be so so welcome if you get a deal there

If anyone has questions I'll check in to answer shortly

Hey man,
Where are you located in Europe out of interest,
I might have an order for you

Cool, I just had a better idea, Sent you a pm.

I'm looking to buy some bitcoin with the money I have in my paypal too.

I understand the trust thing so I'm wondering if you have an ebay account?
I can send you a message from my account with 500 positive feedbacks confirming my username form the site here if thaqt offers some security, I'm paypal verified too for what it's worth.

Hi there.

I just got into bitcoins during the rally of the past days and I'm looking to get my hands on some coins before the price jumps more and it looks like it will take some time to get my Mt Gox account in action.

Like I said I'm PP verified and I've over 500 transactions with feedback on my ebay.
I'm looking to buy 15 - 20 bitcoins and can offer up to 15 each depending on volume of the trade.

I'll contact the seller directly with a message from my ebay so you know who your dealing with.
I understand PP is not the most recommended method but I'm willing to trust neither of us want to get our accounts suspended.

I think I will try and get setup on mtgox as well but with the way the market is going I will probably try and buy some with my paypal first.
Hopefully they wont lock me up for making 1 transaction

That ubitex.org site looks interesting but there is nobody near me that I could do a deal with unfortunately.

One of the problems of living in the countryside I guess

No problem, Im in the US.

Hi there,

I'm a newbie here myself and while I've been doing quite a bit of reading on mining and hope to put together a rig asap.
With the price increases I've been hearing about I want to try and buy some coin's to hold onto in the meantime however the only way I can finance a trade seems to be paypal as I don't have any other e-wallet at the minute.

Some of the post's I've read seem to paint it as a bit of a untrustworthy way to deal and I'm just wondering is there/what is the best protocol to use when dealing with people here through PP.

For example I read someone post the following and I really don't know why this would be only best head the guys advice anyway.


What I'm asking is: what advice would you give for me hoping to buy some coins in the near future.

Any help would be appreciated
Thanks

I just signed up there myself so hopefully there I don't notice too much of a cut taken from me

It's ok I just found it there

For those who are interested on windows 7 it's C:\Users\User\AppData\Roaming\Bitcoin

I installed bitcoin and got .02 coins from the faucet site but I cant find this wallet.dat file
I installed it on windows 7 in c\bitcoin (default directory) anyone know why this might be

Do the prices fluctuate much as from what i read it seems to be only upwards?
Think I'm going to have to jump on board and buy some as It's taking em a while to workout the best mining method

Hi all, Just heard of bitcoin there on Reddit and seems very interesting and fast moving.
I'm not sure if the mining/buying idea is best yet but hope to get involved soon