Silk Road forums
Discussion => Newbie discussion => Topic started by: andyman on April 11, 2013, 12:10 pm
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Hello!
I have a simple question. I was looking for an answer on the forums but I didn't find it. So...
When the prices on the market are being updated?
Yesterday BTC value was very high, I switched my money into it, wanted to buy something, but the server of service was down, so I decided to buy it today. Today I looked on my chosen auction and the price gone higher - I have not enough money. I see that BTC is going up now, so I'm curious.
Cheers,
Andy.
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SR takes a snapshot of MtGox rates and adjusts the prices if you had of brought yesterday I can safely say youde be pissed off considering the price they fell to.
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I think the SR BTC price is pegged to the Weighted Avg. on Mt. Gox. (Currently $170).
If you're asking "when will the Bitcoin price in dollars rise?". Nobody knows for sure, however there's a few clearnet sites, that can be found through Google, that offer their speculation.
Site content ranges from discussion to essays.
P.S Blockchain have Charts that might help you with your speculation.
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I just registered here after lurking to ask something similar.
If the SR BTC $price is pegged to the Weighted Avg then does that not mean someone buying after the price dipped $100 in a matter of an hour or so got themselves a bargain as their bitcoin that was worth $140 at current MT.Gox trading values was still worth about $215 if the prices are based on the weighted average.
So if I have $100 BTC yesterday and panic seeing the price drop I could in theory hedge my losses by Buying green on SR where my 100 BTC is much more valuable still?
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All I know is after seeing the prices rise on mtgox the BTC prices get lower on SR when the prices are hedged.
So, now they are going lower on mtgox, they will get higher on SR i.e. you will need more BTCs to buy the same thing. Which means BUY NOW BEFORE YOR BTCs ARE WORTHLESS!!!!
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I tried buying BTCs yestersay but my supplier was all out. I was so pissed. Lucky as they would have cost me 200 or more a coin and now they less than 145
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@the_viper - In theory, yes. That's absolutely correct. Providing that the transaction is hedged.
EDIT: I should clarify that it only matters that the transaction be hedged if you want your BTC to retain their value in the unfortunate event your order is cancelled, etc.
Otherwise, you would get your 100 Bitcoins back regardless of their current market price.
Forgive me for going on a tangent, but I will explain hedging as best I can here for you.
I know when I first started out it took me a good bit of searching to understand it properly.
Let's say you spend 100 BTC @ $10 each (worth $1000).
Your order is unhedged and the Mt. Gox Weighted avg drops to $5.
Your order gets cancelled.
You will receive 100 BTC back (now only worth $500).
Now, if your order was hedged;
You spend 100BTC @ $10 each (worth $1000).
Your order is hedged and the Mt. Gox Weighted avg drops to $5.
Your order gets cancelled.
You will receive 200 BTC back (now worth $1000).
I hope this has been helpful.
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@the_viper - In theory, yes. That's absolutely correct. Providing that the transaction is hedged.
EDIT: I should clarify that it only matters that the transaction be hedged if you want your BTC to retain their value in the unfortunate event your order is cancelled, etc.
Otherwise, you would get your 100 Bitcoins back regardless of their current market price.
Forgive me for going on a tangent, but I will explain hedging as best I can here for you.
I know when I first started out it took me a good bit of searching to understand it properly.
Let's say you spend 100 BTC @ $10 each (worth $1000).
Your order is unhedged and the Mt. Gox Weighted avg drops to $5.
Your order gets cancelled.
You will receive 100 BTC back (now only worth $500).
Now, if your order was hedged;
You spend 100BTC @ $10 each (worth $1000).
Your order is hedged and the Mt. Gox Weighted avg drops to $5.
Your order gets cancelled.
You will receive 200 BTC back (now worth $1000).
I hope this has been helpful.
Thanks for that,
I had the right idea in the first place then but your post really does put it plain and simple.
I just had a hard time believing that essentially I could trick the system when a big drop in bitcoin price occurs very fast but now I know I'll be thinking about how to time my orders a bit better if the market stays as volatile as it has been recently.
Also if the hedged price is based on the MT.Gox floating average how will it work now that they have suspended trading. Bitcoins are currently trading well below what the last price was on Mt.Gox and they have suspended trading until 2013-04-12 02:00am UTC
I can buy bitcoins on bitstamp for $79.01 while the MtGox Weighted Avg is : $162.22284 and wont change for some time o_O
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Honestly, Viper; I don't know. That's a very good question!
I've only been around here for about 4 months or so, so we're both in the dark on that one ;D
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Also: Bitstamp.net is currently showing the Cloudflare "page unreachable". Oh shit!
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Bitcoin-central.net are trading BTC's at 50EUR. (Doesn't show USD).
Volatile times.
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Honestly, Viper; I don't know. That's a very good question!
I've only been around here for about 4 months or so, so we're both in the dark on that one ;D
Well I see hedged prices haven't really changed anything from yesterday so maybe I get a coin or two quick from the markets and take advantage of an early 4:20 sale :)