Why is the exchange rate of Bitcoins the same for everyone?


When exchange 'A' sells bitcoins for 200 dollars and exchange 'B' buys bitcoins for 300 dollars, there will be people who buy at 'A' and sell at 'B' as long as they can make money on it. This is called 'arbitrage'.

Because of the open markets, people are free to do as they please, so there are people who buy and sell solely to make mere cents on the dollar. Because of this, there is usually not a lot of difference between the exchanges. The only difference in price between the exchanges as we can see them right now, is because of trading and/or withdrawal fees. (Exchange 'A' is 1 dollar cheaper than exchange 'B', because exchange A requires 1 dollar per withdrawal, meaning in the end you end up paying the same amount for 1 bitcoin at both exchanges.)

Because of arbitrage, Google can pretty safely say the price of bitcoin is about XXX dollars / euros because if one exchange would go up or down with the price, they all would. (Exceptions sometimes occur, when one 'big...

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David Andolfatto has written a very good post on Bitcoin and why it might have positive value. In particular, he provides an excellent overview of what Bitcoin actually is (an electronic record of transactions) and how this relates to the insight that “money is memory.” (On this point, see also, William Luther’s paper, “Bitcoin is Memory.”) Nevertheless, I have some questions about the post regarding David’s discussion of the volatility of Bitcoin and how this impacts the choice of what to use as money. In this post, I hope to address this point and perhaps add some additional substance to the issue.

David ends his post talking about whether Bitcoin would make for a good form of money. This is an interesting question and one that often isn’t given sufficient thought. In David’s own research, however, he has emphasized that the characteristic that determines whether an asset is useful as money is whether that asset is information-sensitive (this claim is often prevalent in...

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CEX.io is one of the oldest Bitcoin exchanges around. It started out in 2013 in London as a Bitcoin exchange and cloud mining provider. At some point its mining pool, known as Ghash.io, was so big it held 42% of the total network mining power.

However, on January 2015 the cloud mining operations were closed and today CEX.io operates solely as a Bitcoin exchange. CEX.io is registered with FINCEN and It applies KYC (know your customer) and AML (anti money laundering) policies. This means you’ll need to verify your identity before you will be able to buy Bitcoins via the exchange.

CEX.io allows you to buy Bitcoins using your credit card, a wire transfer or a SEPA transfer (if you live in the EU). However CEX.io transactions work a bit differentl than other Bitcoin exchanges, they are based on Fill-or-Kill orders (also known as FOK).

FOK orders are orders that are executed immediately and in full. So whatever you “agreed” to pay or get, that’s exactly what will...

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Our company offers many ways of buying, selling and exchanging bitcoins. It has never been easier to buy bitcoins from a licensed financial company in any way that is convenient for you and at any time of day and night! Let's take a closer look at this cryptocurrency.

Bitcoin is one of the "youngest" digital currencies, but at the same time it is the most popular and certainly the most promising. Although the system was developed in 2009 by several enthusiastic programmers (experts in cryptography and distributed computing systems such as Satoshi Nakamoto, Gavin Andresen and others), it was not taken seriously until 2011, when its rate increased significantly. This was due to the noticeable growth in the number of users. Since then the system has been rapidly gaining popularity, and according to some predictions it could become the “money of the future,” or a global currency...

Bitcoin specification

Let’s consider the basic distinctive features of this payment...

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What is a traffic exchange?
Traffic exchanges (aka TE's) are online services where members of the site can view each others websites. More commonly - "You view my website, and I'll view yours".
Hence the name traffic "exchange". Members exchange site views with other members.
TE's are actually a very inexpensive form of advertising and can yield humongous results when used properly.

How Do I Receive Hits?
First, you need to signup to TEbitcoin.com then -
Login to your members area and click 'surf' in the top navigation menu. This will open the surfbar where you will view other members' sites. You will earn credits and bitcoins (or partial credits & bitcoins) for every site you view. If you upgrade you will get more credits per view.

How do I use the surfbar?
Click "Surf" in the top navigation menu. Once the surfbar has loaded you will see a timer countdown at the top. Wait until the timer has counted down. You will see some colors...

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Find answers to recurring questions and myths about Bitcoin.

Table of contents


What is Bitcoin?

Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.

Bitcoin is the first implementation of a concept called "cryptocurrency", which was first described in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the idea of a new form of money that uses cryptography to control its creation and transactions, rather than a central authority. The first Bitcoin specification and proof of concept was published in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi left the project in late 2010...

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Price fluctuations in the Bitcoin spot rate on the Bitcoin exchanges is driven by many factors. Volatility is measured in traditional markets by the Volatility Index, also known as the CBOE Volatility Index (VIX). Volatility in Bitcoin does not yet have a generally accepted index since cryptocurrency as an asset class is still in its nascent stages, but we do know that Bitcoin is capable of volatility in the form of 10x changes in price versus the U.S. dollar, in a relatively short period of time (See the Investopedia Bitcoin Center for current updates on the price of bitcoin).

Here are just a few of the many factors behind Bitcoin's volatility:

1. Rate of adoption is hampered by bad press: News events that scare Bitcoin users include geopolitical events and statements by governments that Bitcoin is likely to be regulated. Bitcoin's early adopters included several mal actors, producing headline news stories that produced fear in investors. Headline-making Bitcoin news...

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This year, Japan's government recognized the digital currency as a legal form of payment, spurring a flurry of activity in new exchanges. Major retailers also began accepting bitcoin for purchases.

In the U.S., high-profile companies like Overstock.com began accepting bitcoin in 2014 amid another price slump. But now, developers see greater potential than just payments for bitcoin's blockchain technology. Companies are using blockchain to connect cloud services, monetize all kinds of human interactions and give refugees access to a secure identity.

The new projects have increased interest in bitcoin around the world, rather than simply being a speculative asset dominated by Chinese traders.

"I don't think it's over-exuberance. I think it's the market starting to properly discount some of the utility that these assets have," said Benjamin Roberts, co-founder and CEO of Citizen Hex, an ethereum-focused start-up backed by three Canadian venture funds.


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Beware of bitcoins. They’re the “Wild West” of currencies, according to the Consumer Financial Protection Bureau.

“The CFPB advises consumers to be aware of potential issues with virtual currencies such as unclear costs, volatile exchange rates, the threat of hacking and scams, and that companies may not offer help or refunds for lost or stolen funds,” the government agency announced in an advisory on Monday. Consumers who’ve experienced problems with the virtual currency can also submit a complaint with the bureau, the CFPB said. “Virtual currencies are not backed by any government or central bank, and at this point consumers are stepping into the Wild West when they engage in the market,” it warned.

Read: CPFB to bitcoin investors: You’re in the ‘Wild West.’

Given that the currency can easily, and anonymously, be moved online, “there are almost an infinite number of ways you can screw up and lose your bitcoins,” says Jesse Powell, CEO of Kraken, a trading...

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