Silk Road forums
Discussion => Philosophy, Economics and Justice => Topic started by: SinningSaint on April 12, 2013, 12:08 pm
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A few days ago, I finally bought my first BTCs on eBay. I was only .06 short for the LSD I wanted, so I thought I'd just wait it out while the BTC was rising. Of course, the next day this whole panic starts and now I am getting close to .3 short.
Should I just hurry up and use my BTCs I bought at such a high price, or buy another overpriced bitcoin so I can get the item I want?
(ps. All my purchases are on eBay because I have no other way to buy than online)
This is honestly so frustrating. All I wanted were some god damn tabs >:( Damn you investors
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Shit happens. Most of us lost somewhere in the situation
If you need your drug now/asap then buy the coin required to make the purchase.
If you can wait it out, feel like taking a risk, then wait till the coin rises up again enough for you to make your purchase.
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This is the learning process.
Early humans learned at great risk to their health and personal survival. As a community, we are safer as individuals within a cohesive group. What you witnessed was the actions of a greedy group of individuals--or short-term investors--aimed at making profits sooner than later. If you were trying to make transactions during the last few days, then you are obviously devastated and, naturally, frustrated by the volatile market. Remember, these are consequences of human behavior. As BTC stands, it has just passed a major benchmark of security and stability. There was a run in the market, but there was not, however, any major flaw in the security of our transactions. BTC is still a viable and reliable source of virtual currency--just like gold or water.
Others have offered more complete arguments as to what happened. In the news today, an article discussed the value of the BTC with regard to mining--the cost of electricity to mine for bitcoins is still around $60 [Fact check me!]. So, you can rationally assume (intelligently guess) that BTC will remain at or above that value. Again, keep in mind that the learning process is not without risk. How many people learn new things and pass every test with 100% accuracy? It's a very rare trait. Everyone will make mistakes here and there. Just make sure you learn from it and adjust your behavior accordingly. Be patient. Keep learning, reading, talking, questioning.
Good luck.
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Furthermore, your bitcoins that lost their initial value--from the moment you bought them, for example, if they were 200$US per coin--should be left in "storage". Don't use those coins. Leave them where they are, unless you can afford to take a loss. If can be patient with those coins, then simply follow advice that SR has always given: only use current funds for instantaneous (or as efficiently as possible) purchases, which means buying a few more coins at current market price and buying your goods. Unfortunately, this is the nature of modern economics, but if you are patient and cautious, then it won't be the end of the world. The DOW has returned to its market value it was in 2008. If you understand the stability and dynamics of BTC and cryptocurrency, then you will feel more comfortable with your coins.
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LOL I looked on ebay yesterday and some of the 7 day bids, people had already bid $200 on 1 BTC. BTC goes for a very high premium on ebay even when price isn't really fluctuating. I should list my change. I see people listing .01 BTC and getting bids on it.
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Recommended Readings:
"Bailout" by Niel Barflosky
"Signal and the Noise" by Nate Silver
Macro- and micro-economic textbooks....
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Thanks for the tips.
Yeah. I believe this is just something temporary for BTC. I see its value and use, but I don't see it getting back to where it was last week for a while. The crash had to happen the day I planned to make an order.
Oh well, seems like it's leveling out quite a bit now.
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Thanks for the tips.
Yeah. I believe this is just something temporary for BTC. I see its value and use, but I don't see it getting back to where it was last week for a while. The crash had to happen the day I planned to make an order.
Oh well, seems like it's leveling out quite a bit now.
You're welcome (if any of my "tips" were useful).
One prediction I will make: as an unregulated--and potentially anonymous and IRS-proof, so to speak--market, BTC will see this kind of thing all the time. Until control measures are in place, there will be nothing to stop wealthy investors to purchase vast amounts of BTC, thereby increasing its market value via "demand". So, you have a situation where everyone has the potential to see frequent profits, and those left holding the BTC will face a temporary delay in their spending power.
Think about that for a bit.... It's just an idea...