Bitcoin Q&A: Price Premiums And Arbitrage

How do we handle geographical arbitrage? Demonetisation and bitcoin price premiums in India. Arbitrage is the process of diminishing the difference in price in open markets. If differences in price emerge, they can be exploited for profit until the difference goes to zero. The problem is not bitcoin, the problem is currency controls. Bitcoin has no location as a global network, it was “in the US” to start with or “in India” to end with. What arbitrage activity tells you is not that bitcoin is worth 00 here, but that rupees are discounted 20% against hard assets, including other national currencies.The market is sending you a signal. A currency that cannot move across borders is worth less.

This is part of a talk which took place at the JW Marriott Sahar (International Airport) on March 26th 2017 in Mumbai, India:

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Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and well-respected figures in bitcoin.

Follow on Twitter: @aantonop
Website:

He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters.

THE INTERNET OF MONEY, v1:

MASTERING BITCOIN:

MASTERING BITCOIN, 2nd Edition:

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Videography: Zebpay Bitcoin India
Music: “Unbounded” by Orfan (
Outro Graphics: Phneep (
Outro Art: Rock Barcellos (


Investing in Bitcoin is a rather risky company, so you need to only use a comparatively modest quantity of capital that you are able to afford to lose entirely if things go badly. However, its value is able to move up or down within a couple of minutes. Notice there are distinct rates for bitcoin.

Arbitrage is my preferred means to earn bitcoins. Quite simply, you ought not trade too short for arbitrage. Arbitrage is the perfect choice for the usage of bots. Therefore, you can observe that Bitcoin arbitrage appears to be a terrific chance to produce some passive income, but there are a couple of barriers to it. In general, Bitcoin arbitrage could be a chance to create some passive income but at the identical time, it has risks. On the flip side, the high volatility of bitcoins is an enormous risk for a number of people which may want to use this cryptocurrency, but they’re afraid about price differences. There’s already enough liquidity inside this exchange and these people today help increase that.

If you’re an investor or a digital currency aficionado, you might have heard about a bitcoin-trading technique called exchange arbitrage. For people who don’t know index and mutual funds are a few of the safest approach to put money into stocks and they provide correspondingly lower rates of return. But in the present state we are in fact losing money in the procedure. In reality, the actual profits are much more marginal, he’s said, and therefore don’t expect to put in a plug-in and write your own rags-to-riches story. But in several cases you can merely trust on the marketplace. I was fortunate I was able to access two distinct markets here in the U.S. with unique rates.

Bots ordinarily have a variety of scripts or instructions describing how to behave, based on the situation of the marketplace. This smaller bots will sell each of their Bitcoins and the price will nonetheless go up. The majority of these trading bots are readily available to configure and customize. Consequently, whether you’re likely to use a superior trading bot or you think that it’s far better to do it by yourself, you have to bear in mind you shouldn’t risk any sum of money you can’t afford to lose.

Bitcoin brokers offer a very simple trading online platform. Traders have the choice to vote with their feet. Arbitrage traders are apparently failing to make the most of price differences for stretches lasting for a number of hours and possibly even days! Trading with Bitcoins was regarded as risky, but the present trends demonstrate it has come to be a huge hit the binary options sector. Still, even trying to arbitrage manually can be extremely beneficial, provided that you watch closely, and make certain you’re placing simultaneous trades.

In the time that it requires to move a currency from 1 exchange to the next, the cost might have rapidly moved against you. Moreover, virtually all exchanges have an API and these could prove to be quite prosperous for you. There’s always someone on this exchange who’s waiting for an offer and is prepared to deal. Additionally, there are fewer liquid exchanges where there are less traders and occasionally, when you attempt to sell or purchase an asset there, you want to await somebody to accept your offer and approve the transaction.

17 thoughts on “Bitcoin Q&A: Price Premiums And Arbitrage

  • May 18, 2017 at 7:52 pm
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    Andreas is definitely one of the greatest Greek philosophers of modern times

  • May 18, 2017 at 8:01 pm
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    No better explainer of bitcoin out there than my mate andreas.

  • May 19, 2017 at 12:13 am
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    Is the risk of sudden unplanned devaluation of the Rupee also factored into the heavy discount?

  • May 19, 2017 at 3:35 am
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    Wow, what a clear and illustrative breakdown. It starts to make the other crytpo gains make more sense, money wants to change hands. In crypto land arbitrage happens fast creating value through trade. We can see the value harvested via temporary or long term drops in price, such opportunity for solutions.

  • May 19, 2017 at 6:54 am
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    Brilliant talk!
    It’s sad that the Indian people suffer under the arch-criminal modi and his war against “corruption” which in reality is a war against the common man who suffers and starves.
    To the gallows with modi, and may India advance and prosper once he is gone.

  • May 19, 2017 at 4:32 pm
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    Mr. Andreas, you are the best representative/speaker about the king (BITCOIN)

  • May 19, 2017 at 7:10 pm
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    So, if somebody in India wants to buy Bitcoin with USD instead of Indian Rupee, would that person pay the same amount in USD as somebody in USA would pay?

  • May 19, 2017 at 10:23 pm
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    answer starts at 1:09
    her q: why is BTC more expensive in India than US?

  • May 20, 2017 at 12:31 am
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    He’s only half right.

  • May 20, 2017 at 3:22 am
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    This bitcoin shit is crazy mannnn

  • May 20, 2017 at 5:00 am
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    This is the same logic for gold and silver relative to fiat currencies. In my opinion. So Bitcoin is telling you something as is gold and silver again relative to fiat currencies

  • May 30, 2017 at 2:24 pm
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    Great Video! Bitcoin is popping right now. But many people don’t know the risks. And they don’t get what it is and why its valued. Essentially, you want to hold onto it for a long time. Because there’s too much volatility in the short term.

  • June 3, 2017 at 9:08 pm
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    holy fuck

  • June 22, 2017 at 11:58 am
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    How in the world are you saying that arbitrage is illegal?????

  • July 4, 2017 at 1:57 am
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    He is talking Global socialism. All over the world bitcoin is of same value . this is NOT possible since Milk does not cost the same in USA and India and Gas and Bread and neither one person is paid same amount for work/hr in USA and India.
    Bitcoin is only successful as a universal currency if the whole world is EQUAL.
    Socialism.
    Techno-socialists.

  • October 1, 2017 at 11:12 am
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    Great insight. Im learning so much about currency from you andreas.

  • December 13, 2017 at 10:54 am
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    Why would this be illegal?

Comments are closed.