Silk Road forums
Discussion => Silk Road discussion => Topic started by: WeedBros on November 24, 2012, 11:39 pm
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Ok so I just made a sale and my escrow says 170 dollars so I have 2 questions why did it convert bitcoins to usd for me and how does the cash advance work that money is sitting in escrow so i should be able to draw from it for a fee correct but it wont let me any help is much appreciated
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The account balance lists USD because your account is set to hedge the BTC funds, i.e., you're guaranteed that USD value regardless of whether the price of BTC rises or falls while your money is in escrow.
Frankly I don't see the point. You have to withdraw your funds in BTC anyway. It's just an extra few % out the window.
Not sure about the cash advance problem. The sellers guide explains the details. Maybe hedging prevents the use of cash advance.
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The account balance lists USD because your account is set to hedge the BTC funds, i.e., you're guaranteed that USD value regardless of whether the price of BTC rises or falls while your money is in escrow.
Frankly I don't see the point. You have to withdraw your funds in BTC anyway. It's just an extra few % out the window.
Not sure about the cash advance problem. The sellers guide explains the details. Maybe hedging prevents the use of cash advance.
The point of the optional hedge is so that if over the 2-5(or 17 or whatever) day period while items are unfinalized, if the price per BTC drops from 12.4 to 10.4 you still get roughly the same amount of USD worth rather than the same lesser-valued BTC. With the swings BTC have had lately it isn't a bad thing at all, although in this upswing unhedged could be better (If you think it'll keep going up).
Definitely not *just* throwing a few % out the window
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Cash Advance -
Is your escrow in USD or BTC?
I only ask because I currently have escrow ONLY in USD ...and the Cash advance option is available to me.
I have never used the Cash advance, so I can only hope that this info may help you.
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The account balance lists USD because your account is set to hedge the BTC funds, i.e., you're guaranteed that USD value regardless of whether the price of BTC rises or falls while your money is in escrow.
Frankly I don't see the point. You have to withdraw your funds in BTC anyway. It's just an extra few % out the window.
Not sure about the cash advance problem. The sellers guide explains the details. Maybe hedging prevents the use of cash advance.
The point of the optional hedge is so that if over the 2-5(or 17 or whatever) day period while items are unfinalized, if the price per BTC drops from 12.4 to 10.4 you still get roughly the same amount of USD worth rather than the same lesser-valued BTC. With the swings BTC have had lately it isn't a bad thing at all, although in this upswing unhedged could be better (If you think it'll keep going up).
Definitely not *just* throwing a few % out the window
Yeah I mean I get the point. But BTC has to depreciate by more than 4% in that <17 day period before hedging isn't throwing away money. It makes sense if you're expecting a precipitous fall I suppose. In a bull market it's a good way to cut your margins another 4% (SR fees are expensive enough). And who here isn't long on bitcoins?