Silk Road forums
Discussion => Silk Road discussion => Topic started by: Looker on August 12, 2011, 11:44 pm
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So maybe I am doing something wrong as far as my methodology on using SR goes, if so please correct my logic.
Generally I use SR to purchase a few various things and as such I usually use the following process.
1.) XFR currency to dwolla
2.) XFR currency to mtgox
3.) Purchase as many bitcoins as I am able (with the previous transfer)
4.) XFR amount needed for purchase to SR, make purchase, etc
I then therefore retain unused btc in my mtgox account. I know some of you will say for security of said btc leaving them at mtgox is probably not a good idea but I have the approach of any btc I purchase I never purchase more than I can afford to lose with no ill impact.
However recently I made a purchase when my btc was worth $13-$14USD however the sale fell through (after a couple weeks) and subsequently my btc returned to me. Now my btc that were worth $13-$14 are now worth $10 at most. In my case this was approximately 25BTC so we are talking a difference of $100USD. This is a somewhat sizeable loss in a case where when the purchase was made they were worth X, now they are worth Y and I have no product.
I'm not looking to complain so much as wondering what I can do to avoid this in the future or if there is a way to 'recoup' that loss somehow? The only thing I can think of is never leave btc in my account, only leave USD and only buy as many BTC as I need to for a particular purchase and spend them immediately, in which case this would have less impact. The reason I hold them as btc is more because if prices go up I can make a few extra dollars and I understand therefore I am assuming that risk, but when they are in escrow I can't really mitigate a drop unless either I or the seller cancel the transaction. I prefer not to cancel on sellers as they may have shipped etc prior to changing the status to 'in transit' which would not be fair to them. This aside however once I have engaged in a transaction this isn't the same to me as engaging in trading of btc for profit as I see that transaction having a certain value, and if that transaction is cancelled I would like to recieve the same 'value' back rather than my now less valued btc. I also think I have seen a couple of cases where sellers have cancelled transactions to avoid this same sort of situation but for buyers there is no recourse (i.e. seller cancels they still have product valued at X, buyer cancels they get back X btc which may or may not have the same value as they did initially).
Thoughts? Or is this one of those sometimes you eat the bear and sometimes the bear eats you deals where thats just how it is?
T