What happened to local bitcoins?

[sana9821]

On preev i checked bitcoin price and it was really high, even btc-e is only 288 dollars, so i started checking different exchanges and boom i see 600 usd on local bitcoins, is it some kind of a problem?

EDIT: it is 614 now :DD

[OnkelPaul]

People can buy and sell at whatever rate they think is appropriate.
Localbitcoins does not create a true market where arbitrary buyers and sellers come together and define a price by combining their offers. So I would not trust these localbitcoins numbers, they are either made up (by parties collaborating to make the exchange rate look higher than it actually is) or happen due to extreme cases (for example, really small amounts where the buyer does not care if he pays a few dollars more than market rate as soon as he can get BTC quickly and anonymously.)

Onkel Paul

[TinEye]

hey, i think it has to do with the fact that localbitcoin offer a faster and more anonimous service

because it work like a decentralized exchange, so they are rising the price a bit for this reason

maybe you don't know but numerous times there are quite a few people that are willing to pay more to have their bitcoin faster

[batesresearch]

https://localbitcoins.com Are you showing reasonable prices, very little above Preev - that's what I am seeing?

[sana9821]

thank you for the answers, though its strange that preev uses local bitcoins to monitor the price of bitcoin as the price there can really fluctuate, others might be puzzled by that too

[sherbyspark]

thank you for the answers, though its strange that preev uses local bitcoins to monitor the price of bitcoin as the price there can really fluctuate, others might be puzzled by that too

I don't think preev uses Localbitcoins as the source to show bitcoin prices by default. It seems to be taking the average but the localbitcoins does not look like being affecting the price of it.

[jeffthebaker]

Are you reading localbitcoins correctly? There are no doubt people offering to sell BTC at the rate of 600 USD+ per, but obviously, these orders are never fulfilled. Localbitcoins typically offers a small premium, because the sellers are individuals, but the average price of a Bitcoin on there certainly isn't that out of whack with the average between other exchanges.

[MaxLBC]

The price also varies wildly at our site depending on what payment method the advertisement and trade is for. Those that are highly reversible generally have a higher price so that the seller can cover himself in case of scams or frauds. A lot of volume is also done with advertisements the aren't publicly visible as they're made for recurrent business for repeat customers.

[twister]

Can you post one advertisement where someone is offering to buy Bitcoins for 600 USD, my guess is they would most probably be sell orders and until the actual price reaches to that no one is going to buy it from them.

Also, if someone is offering to buy at that price then it must be some kind of scam and they'd be offering to buy bitcoins for PP or some other method which they can conveniently charge back, so don't fall for those.

[n2004al]

I don't believe to much at local bitcoins. I think that the site is not a good place to sell/buy bitcoins because there are to many other ways to do such things and with better prices.

Then even the site is not credible. I had tried to buy bitcoins (to try) through local bitcoins and the answer from someone I have contacted it is never arrived. For sure or maybe the fault is not to the local bitcoins (as a site) but to the person I contacted. But, at the end, I haven't had the service they promised to give me.

[wuzamarine]

Anyone posting for excessively over market prices is a con, guaranteed you will lose you money.
The only ones offering those really high prices have only one or 2 trades in their history, for a reason.