Silk Road forums

Discussion => Security => Topic started by: igotyou on November 16, 2011, 04:14 am

Title: Bitcoin Concerns..
Post by: igotyou on November 16, 2011, 04:14 am
I hate to spam and post the same message again, but I think I posted in the wrong section; so here it is again..


I have been considering vending on SR, but have concerns over how the payment is taken. I really do not trust the stability of bitcoin, and the way it fluctuates... I am not here to lose money by having each payment involuntarily put in to such a volatile ecurrency. Does anyone have with experience have any suggestions on how to limit risk of these fluctuations?

Is it customary for vendors to accept/request other forms of payment at their discretion?



Thank you,
IGotYou (coming soon)
Title: Re: Bitcoin Concerns..
Post by: Cgault on November 16, 2011, 04:47 am
hedge the transactions. SR supports this. Keep the dollar price of the product constant, and hedge the coin value. Cash out the BTC ASAP in small transactions. Don't try and both vend and time the market with the same coins. If you are going to speculate as I do, use different accounts.
Title: Re: Bitcoin Concerns..
Post by: igotyou on November 16, 2011, 04:50 am
On average, how long does it take until 100-1k worth of bitcoin is sold? Should I sell in even smaller amounts?
Title: Re: Bitcoin Concerns..
Post by: Cgault on November 16, 2011, 04:58 am
Do you mean in a single sell order on an exchange? it depends on the sell price and whatever limits that particular exchange supports. If you sell at the market price, you can probably execute  trade for more than 1k BTC in a few minutes. I have seem trades for 10k, 25k, 40k BTC.

There are other ways to cash out however, you have immerse yourself in the world of BTC. I think most vendors would rather actually use these other methods rather than exchange based liquidations. But, If it were me, I would leak out no more than 250 coins per trade. 
Title: Re: Bitcoin Concerns..
Post by: igotyou on November 16, 2011, 05:10 am
So it is rather easy to liquidate bitcoins quickly..that was my concern

Thank you for your help
Title: Re: Bitcoin Concerns..
Post by: Cgault on November 16, 2011, 02:33 pm
Bitcoins are presently a liquid digital currency - for time being. You can get $$ for them, there are exchanges, there are alternate cash out methods. Even the most recent fall is starting to rebound. Here's a question: if I were an SR vendor, would I participate in large exchange based sell orders.

No.Iwould distribute the sale over a mix of private cash puts discounted from the market rate, and some exchange sell orders that are smaller.