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Author Topic: This is the end  (Read 7064 times)
notme
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August 20, 2012, 04:53:52 PM
 #61


Have to remember, that vendors on that silk road can hedge their btc to protect themselves against swings like this...I think it only costs them 4 percent or so, (been a long time since i read a thread over there, maybe its changed by now, but at least thats the way it was a couple months ago)

AR

Sure you can always do something. 4% sounds OK. But you also have to learn how to hedge and then hedge the deals. Does your time have no value?

I'm not positive since I'm not a user/seller of SR, but I've heard that the hedging is a built in functionality.  The 4% you pay is so you don't have to learn to do it yourself.

That is my understand as well just remember hedging simply transfers the volatility risk to someone else (in this case the site operator and/or backers providing the hedging).  If volatility increases the risk increases and either they are forced to stop offering it or charging more.   No matter who is doing the hedging volatility costs users who are using Bitcoin as a payment mechanism.  More volatility = higher costs and lower value/utility.

If they make an actual trade to back it, there is a very small window of vulnerability.

https://www.bitcoin.org/bitcoin.pdf
While no idea is perfect, some ideas are useful.
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pyromaniac
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August 20, 2012, 04:54:03 PM
 #62

"SR is not needed for over 99% bitcoin users"

SR is a large part of btc economy. A part that is actually not about speculation. I don't like junkies, but at least they are using btc the way it should be.

Not everyone who gets some shrooms every other month is a junkie. Not everyone who enjoys a glass of wine in the evening is a drinker.
It's offtopic, but the question on this answer is much more difficult than "Yes" or "No". No, medically he isn't addict, but the law is not on his side. Anyway, any illegal uses of bitcoin giving more reasons to goverment to close it.

You are, of course, referring to the One World Government and/or Illuminati here, right?
Yep.

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August 20, 2012, 05:01:03 PM
 #63


Have to remember, that vendors on that silk road can hedge their btc to protect themselves against swings like this...I think it only costs them 4 percent or so, (been a long time since i read a thread over there, maybe its changed by now, but at least thats the way it was a couple months ago)

AR

Sure you can always do something. 4% sounds OK. But you also have to learn how to hedge and then hedge the deals. Does your time have no value?

I'm not positive since I'm not a user/seller of SR, but I've heard that the hedging is a built in functionality.  The 4% you pay is so you don't have to learn to do it yourself.

That is my understand as well just remember hedging simply transfers the volatility risk to someone else (in this case the site operator and/or backers providing the hedging).  If volatility increases the risk increases and either they are forced to stop offering it or charging more.   No matter who is doing the hedging volatility costs users who are using Bitcoin as a payment mechanism.  More volatility = higher costs and lower value/utility.

If they make an actual trade to back it, there is a very small window of vulnerability.

Just  checked it out.. It an automated system on SR. the admins take all the risk, all the vendor has to do is click a button to hedge. It looks like you just have to know what hedging is and then click the button. Man, there are some pretty business savy drug people.. Didn't realize that SR was that far in their thinking...


So, they obviously have figured out a way to help ease the minds of vendors that can't take the swings.

AR
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August 20, 2012, 05:09:58 PM
 #64

but the law is not on his side.

This is really one of the most stupid arguments I have ever heard. The law is not on the side of every single victim of the law. The law is not on the side of Pussy Riot or Assange. It was not on the side of Geronimo and it is not on the side of Salman Rushdie. The law was not on the side of the Jews, it was on the side of the Nazis.

Exactly what is the law doing when whipping a wine drinker bloody or jailing a fan of shrooms?

You must have to remember that we live not in vacuum, but in society with real people, who do not want to be abused by crazy mushroomeater with sharp knife. If someone don't like this, he can make his own heaven with blackjack and hookers.

notme
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August 20, 2012, 07:41:33 PM
 #65

but the law is not on his side.

This is really one of the most stupid arguments I have ever heard. The law is not on the side of every single victim of the law. The law is not on the side of Pussy Riot or Assange. It was not on the side of Geronimo and it is not on the side of Salman Rushdie. The law was not on the side of the Jews, it was on the side of the Nazis.

Exactly what is the law doing when whipping a wine drinker bloody or jailing a fan of shrooms?

You must have to remember that we live not in vacuum, but in society with real people, who do not want to be abused by crazy mushroomeater with sharp knife. If someone don't like this, he can make his own heaven with blackjack and hookers.


I have never seen anybody on mushrooms violently attack anyone.  K2, alcohol, and other legal substances are a different story.

Nice try though.

https://www.bitcoin.org/bitcoin.pdf
While no idea is perfect, some ideas are useful.
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August 20, 2012, 07:43:39 PM
 #66

Here we go again.  Roll Eyes The expert with a 20 post count is schooling us on economics.

The gospel according to Satoshi - https://bitcoin.org/bitcoin.pdf
Free bitcoin in ? - Stay tuned for this years Bitcoin hunt!
amencon
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August 21, 2012, 01:04:39 AM
 #67

Stupid Bitcoin, can't even die correctly.
Rygon
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August 21, 2012, 12:56:20 PM
 #68

It's really difficult to reduce the volatility when we can't move USD in and out of the market very quickly. The same goes for arbitrage. These drops wouldn't be so bad if it didn't take days for people to move fiat into the system to establish a floor. Otherwise, we need more people with big pockets to keep fiat floating on the exchanges doing nothing, just waiting for a big drop.
unclescrooge
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August 21, 2012, 01:12:15 PM
 #69

Yes we need big players.

But don't worry, they'll come with time Smiley
thezerg
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August 21, 2012, 02:00:54 PM
 #70

It's really difficult to reduce the volatility when we can't move USD in and out of the market very quickly. The same goes for arbitrage. These drops wouldn't be so bad if it didn't take days for people to move fiat into the system to establish a floor. Otherwise, we need more people with big pockets to keep fiat floating on the exchanges doing nothing, just waiting for a big drop.

Its not deep pocketed players we need for that but exchanges we trust to not get hacked...
goodlord666
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August 21, 2012, 03:06:27 PM
 #71

why did a troll post get this many replies and views?


SkRRJyTC
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August 21, 2012, 03:17:57 PM
 #72

why did a troll post get this many replies and views?



Good title.
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