Topic: Silk Road sale.... BTC explosion. (Read 16279 times)

+1
Like us getting lost in the big bad TOR-Sea?

On SR, btc is just a currency: many of us do not immediately change it back to our local money, but keep it stashed, either on SR, or in some other online site.  Takes a bit of research to figure it all out...my suggestion is to get on SR forums, and study up a bit, before doing anything else...all these sort of bitcoin questions have been discussed at length.  Again, SRforums have plenty of stickies and there are friendly members who will help out.  I wouldn't do any transactions on main site until going there.  But there have been ripoffs, of drug and bitcoin buyers, both, so study up a bit...it's considered part of 'paying your dues,'...best wishes...

Don't go Toring where you shouldn't be.

What do you mean?

Thanks for the clarification.

Only if a vendor chooses to use the service, SR charges a fee to hedge a purchase like this in US dollars on top of their standard fee so not everybody uses it.

the silkroad offsale will drop the price the next days (sellers are likely to exchange there winnings) and since buyers spent alot of bitcoin they will buy them back some time later and increase the price back to its balanced level.

-> this is a win-win situation for the bitcoin economy, therefor good bullish news.

Wow that actually might make sense.  Considering how much was sold this weekend I'd say there was actually more of an impact then I thought, and if everyone gets their order and finalizes at the same time that could cause a shift.

I believe I read somewhere that silkroad hedges to dollars when the buyer buys, and back to bitcoin when the buyer marks as delivered and they need to pay the seller.  If that's true, I'd expect slight downward pressure during the sale, and upward pressure over the coming weeks as people's deliveries arrive.

SR has definitely been a hit with everyone I've shown it to. I'm sure its at least a quarter of the bitcoin economy if you just look at the latest feedback left for sellers.

def a pattern with this user, forum has an ignore button folks

Absolutely nothing on there is competitively priced for the US, but I can imagine that other countries don't have quite the supply lines that we do. Personally, I think the tradeoff of dealing with the USPS vs. street dealers comes out in the wash. I'd rather get stabbed than convicted of international trafficking... The likelihood of filthy hippies knifing you is pretty low, and they always have the best drugs.

I really think silkroad is probably the biggest hit with 17 and 40 year olds who don't know where to get the drugs they want. If you've never seen LSD before, a $20 hit doesn't seem to expensive. Me? I prefer a $20 ten-strip.

Yes but that is the price you pay for anonymity and not having to deal with drug dealers in person.  Some other things are competitively priced. 
And just like I predicted the sale did nothing to impact Bitcoin price.

It has existed longer than the overwhelming majority of bitcoin businesses. It would take very little daily volume to get the top spot. What are they competing with? Fucking alpaca socks? Coffee? People like drugs more.

The bitcoin community isn't using silkroad, the silkroad community is using bitcoin. Big BIG difference.

I can't imagine that being true.
Like the overwhelming majority of bitcoin peers I have met, I would not even consider using SR.
They are a drop in the bucket. Of course neither you nor I would know how much business they traffic.

Cool. So now drugs on silk road are only 90% more expensive than the street...

1.1btc for a friggin' norco? I could be a btc millionaire.

I see a services catogory. Whats that for, rent a slave, hitman, heroin oil massage, the more entuseastic sort of buisiness dealings?

Also, cunicula, don't be so unpleasent.

1) You don't have to be such a fucking dickass
2) You're only half-right and adamstgbit is the other half

In the case of SR, this one-off sale will probably have a temporary increase in the price, offset by a decrease after it is over as sellers that accumulated BTC will sell them off. It definitely could be a test for how well prices stabilize in these temporary distortions and how much SR has as an influence over the amount of BTC bought/sold (which anyone could take a wild guess at).
His example is right, if you buy bitcoins and then immediately sell them back, on average, this will have no effect in the long run but really just test it's price stability in the very short term. This is likely going to be the case this weekend. I see no reason why this would be a permanent boost in prices...
This is where you are half-right. Yes, there will be an increase in BTC demand which will push up the price. After this weekend, however, it will be immediately followed by a likely near-equal increase in BTC supply. Ceteris paribus, we should be right back to where we were.
Permanent rises in BTC price would be associated with permanent increases in BTC demand. This SR stunt might have a small effect in that area (new years trying SR for the first time, more loyalty and patronage to the site, etc) but for the most part it is a temporary thing. Speculators would be wise to sell on increases these days and expect some drops when all the sellers that raked in BTC over the weekend look to cash out.
The only reason why prices will jump up for these quick growths in transaction demand is because the bitcoin market is so limited, and this sale sounds like it was a surprise. 10% drugs in BTC means those who were going to buy anyways would be willing to pay up to 10% more for BTC than they expect to get use out of. Definitely should lead to some small fictional growth.

IMO
people that regularly, spend bitcoin (temporarily hold coins), have already been factored into the current price.
the only way that the bitcoin economy can increase price is, if their is more spending, and this increase in spending is sustained.

I think we can all agree that this sale will have little effect on price. but it could be that this sale will cause more people to try Silk Road, and maybe some of those new Silk Road users will become regular customers.

I firmly believe that in the future the bitcoin economy will be the driving force behind price. but ATM investors / traders / bitcoinia gamblers    set the price.

am I underestimation the current bitcoin economy?

  most likely

Nah, reading your post again it was pretty clear. I guess I was not paying attention after spending the evening getting this posted.