SilkRoad converts the current MTGox USD exchange rate into the bitcoin price. So the customer would still pay the same amount of USD whether bitcoin is at $70 or $150. You would then want to exchange it for USD ASAP to keep from losing money if the price of BTC goes down.

The price of bitcoin will eventually settle down.

So I sell a 1 year membership today for 1 BTC because the price happens to be 99 USD.

Tomorrow, the MtGox crashes to 75 USD.

Now I just lost 24 USD. I should not care about that? Or you expect to immediately sell every BTC to USD in MtGox automated the second someone spends any BTC?

The fluctuation is too fast, it makes no sense. My hosting cost is not in BTC, its in USD. If I bill USD, there is no fluctuation at all, I know how much I get and how much of it is spent on hosting. With BTC this does not work, the F/X impact on our P&L would be INSANE from month to month.

Right, but the risk is still big, considering BTC still today fluctuate between $80 and $60 in a matter of minutes.

It is just not stable enough and the upside of using a BTC is far from big enough to justify it.

hmm, what if MTGox is down, and so you can't accurately determine the current exchange rate? you just make up a price and pray that when MTGox re-opens you aren't going to be down 50%?

A/B split test which method actually reaches better acceptance short / long term.

From the implementations I've seen so far it was always coupled to the market rate, then again I don't think most people have the volume to actually split test with fast meaningful results, either that or nobody has actually tried to establish the value of a bitcoin with other means.

Either way could have success - if you take the anonymity of bitcoins in conjunction with porn it should be a no-brainer that people would use them for their privacy / convenience.
Under that aspect I could see people accepting a certain markup in pricing since it's a one-time payment without their name attached they know it can't "bite them in the ass" (carding, angry wife [card/bank statement] etc.)

One method is automated (attach bitcoin value to market value) the other you have to adjust it yourself to not make a loss - then again you could monitor if you _actually_ make a loss or if those are simply extra sales that would not have happened with standard payment / funding methods in the first place.

Or it goes up 25 dollars. I believe in the coin and i believe it will go up.

So that's the risk i take when accepting payments.

Things don't bode well for the solidity of your argument when it starts off using a conspiracy theory as its basis.

It would most likely use the price of the last trade. This volatility is not normal... It's crazy pump and dumpers trying to make money so who knows how long it will be like this.

There is a movement to quit tieing the price of bitcoins to only MTGox and use the collective exchange rate of all the exchange sites. This would also help alleviate the massive swings caused by MTGox being down.

Todays clusterfuck might be a good thing if this coin wants to grow again in the future.
It's still in beta sort off. We're testing it and improving it. It can only get better from here i think.

this event mimics the 2011 crash, things improved after that, this will get us to the next step, i agree.

are you being serious?

100% serious. are you being serious?

MTGox doing an AMA?
http://www.reddit.com/r/Bitcoin/comm...re_mt_gox_ama/

Ignore the haters, dude; you just enjoy your $40.

Anyone can create their own 'Bitcoin' (Litecoin, Namecoin, et al) so if they're going to accept fake money, why use or give exposure to 'other people's' fake money? Why not just create and use Mancoin/Wincoin/Porncoin/Sexcoin, (after mining 200,000 units for themselves).

Feel that same way about the adult industry?

there's a lot of pre-conceived ideas that bubbles are bad, that's not the case. bubbles are how shit gets done, it ain't pretty but tech evolves in fits and starts.

Infrastructure :2 cents:

senseless discussion I won't get into.

If amazon can make their own coin so should the adult industry. I'm all for the sexcoin! \o/

Give them to people who buy memberships as a "cash back" incentive that can only be spent on adult industry sites.

Where do I sign up? Who is spear heading this project?

Better name but it's taken http://www.redcoin.com/

i told you so...

https://encrypted-tbn1.gstatic.com/i...ePKukCrccIHepN

its not like they "spent" their ddos capabilities...this was not even a hit by the government on exchangers...wait until they hit the exchangers for money laundering the price will go down so much you will actually owe mtgox money :1orglaugh

Gonna be REAAAAAALLLLLL hard to prove money laundering.

i thought i told you so's only make sense if what you told us is actually true.

Guns are made to kill people, not bitcoins.

Could this be the way to the next step?

http://www.reddit.com/r/Bitcoin/comm...mance_bitcoin/

thanks for that, it sure seems to follow the original concept specs, as this comment points out

Join https://www.hipchat.com/gVtxlAV2t if you wanna help form it, or just show support :)

For devs: https://buttercoin.hackpad.com/Desig...-1-ca4mJq0LbYw

:1orglaugh

where is the funeral. I would like to send an arrangement.

Good thing I didn't waste my time with this..

it’s important to understand why the price of btc is so volatile.

btc is a startup currency, like any startup, it's highly volatile because people are still experimenting to figure out how useful it is. But over time, more about the potential or lack of btc will be revealed, the uncertainty will diminish and volatility will decline.

A lot of people view btc as a replacement for conventional currencies, that’s a mistake. Bitcoin will (potentially) succeed serving niches that conventional currencies don’t serve well.

shits been around for years.. it didn't 'rise and fall' within a few months

its what they got egold and 1mdc for quicker than you can say quick...took one day...poof...gone...

You don't have to prove anything. You just have to charge the exchangers for being in involved in whatever laws they want to throw at them and tie it up in court, draining their funds and weakening the faith in the currency. That's how it works.

One does not simply compete with the Fed and the US government and frolic peacefully through the woods. They will invent new ways to fuck with you if they want you. You're talking about people who drop bombs on schools because they think one "terrorist" may be near. They are not going to hesitate to rain on Bitcoin's parade when and if they decide they have had enough. But that day is not today.

Besides, Bitcoin is only anonymous as long as you're a small player If you're moving any real money you have to be registered and that kills your anonymity. And the exchangers are all sitting ducks because they are tied to bank accounts. You want to see panic, let a few exchangers have their bank accounts frozen by the US gov.

People using threats of government are directly using threats of violence agasint other people.

You're disgusting and will be made irrelevant in time.

Well, that post will fix it all up then. You just saved Bitcoin and all the other crypto-currencies. Pat yourself on the back. :upsidedow

Nothing is broken. I'm not the side resorting to violent threats, you are.

:1orglaugh Put down whatever booze you're drinking today man. I didn't threaten anyone.

Yes you are....

You're going "Hey I'm not point a gun at you you.... but this guy over here... hes gonna point a gun at you and stop you from trading". (nudge nudge wink wink)

You are supporting it by not standing up against it.

Don't call bitcoins a currency. Its play money that morons attributed value to and thought it was a "currency". Its play money, it has no more value than any other bitcoin clone currency. Only difference is that this one attracted those morons (and smart speculators).

https://en.wikipedia.org/wiki/Ad_hominem

Governments cannot stand without support.