MtGox spot price no longer "real" price of BTC?

[mickeyshrugged]

Ever since MtGox and Dwolla parted ways there has been a consistent $5 gap between the spot prices at MtGox and CampBX that has not been eliminated through arbitrage. Apparently the market has set a $5/BTC premium on trading at MtGox. Doesn't this mean the MtGox price can no longer be considered a reflection of the real market rate and that it's no longer useful as a guide in determining the retail cost of goods sold in BTC?

[solex]

Looking at this thread, people were discussing a persistent $4 difference between gox and bitstamp - a month ago.

https://bitcointalk.org/index.php?topic=182568.msg1913404#msg1913404

Not sure about Campbx then.

[swordfish6975]

There's a gap on btc-e as well because its hard to get USD in there

[ironstove]

If your theory of btce price being lower due to difficulty in moving money in and out, then shouldn't gox price be lower, not higher since a lifeline was just eliminated?

[RoadTrain]

If your theory of btce price being lower due to difficulty in moving money in and out, then shouldn't gox price be lower, not higher since a lifeline was just eliminated?

It's harder to get money in BTC-e than out.
If case of Mtgox it's quite opposite. Easy to deposit, harder to withdraw.

[QuantPlus]

If your theory of btce price being lower due to difficulty in moving money in and out, then shouldn't gox price be lower, not higher since a lifeline was just eliminated?

It's harder to get money in BTC-e than out.
If case of Mtgox it's quite opposite. Easy to deposit, harder to withdraw.

The only pair you could do decent volume is Gox/BTC-E...
Where GOX is $4.50 higher right now.

To arb 100 size of BTC which is only $450 gross profit...
You would probably need to have at least $50,000 on each exchange...
And be wiring amounts near reportable thresholds...
And absorb time premium and counter-party risk...

What fun.

[btc6000]

...Apparently the market has set a $5/BTC premium on trading at MtGox...

Gox has the liquidity, unfortunately.

[lollipierre]

Exactly, you can view this as a "liquidity" premium...

[mickeyshrugged]

The gap has narrowed to a dollar.