Bitcoin price? Who is making it?

[mayax]

How is it made the Bitcoin price?

How is it possible in a so called decentralized market, where the exchangers are(should be) independent entities, ALL of them to have the same price when they certainly don't have a "the same" order book(same clients, same orders) ? How is that come?

Can someone explain ?

[Rupert Murdoch]

All of them dont have the same price. That is why arbitrage occurs. Arbitrage brings the price close, but not same.

[OmegaStarScream]

How is it made the Bitcoin price?

How is it possible in a so called decentralized market, where the exchangers are(should be) independent entities, ALL of them to have the same price when they certainly don't have a "the same" order book(same clients, same orders) ? How is that come?

Can someone explain ?

I asked similar question on July , you can see the answers here : https://bitcointalk.org/index.php?topic=1123803.0 It should help you out to understand how it works .

[Xmaseven]

How is it made the Bitcoin price?

How is it possible in a so called decentralized market, where the exchangers are(should be) independent entities, ALL of them to have the same price when they certainly don't have a "the same" order book(same clients, same orders) ? How is that come?

Can someone explain ?

without a "central" committee that decide price and make right and properly decision, only people "set" the right value.
It's like "far west"... you can also sell 1 btc for 10k $ or 1$ by convention I think best price is from preev.com

[Amph]

becaue the demand somehow, will auto-adjust on every exchange, so you get roughtly the same price

simple example is this a random guy running a bot for trading, sees that the demand is higher in another exchange, he will not sell anymore at the same price as before

[mayax]

All of them dont have the same price. That is why arbitrage occurs. Arbitrage brings the price close, but not same.

They have similar prices (1-2 usd plus or minus)....  Why?

[WENGER]

Not all exchanges have same price, so far haven't seen any that have exact prices but they tend to always be close together as they follow the price in real time, perhaps just matter of which one of price charts they follow for base but there are the so call manipulators in which make different in the prices as one would trade it for more or less in value and if it happens to be a large amount then they also tend to manipulate the whole market by affecting Bitcoin price itself.

[mayax]

How is it made the Bitcoin price?

How is it possible in a so called decentralized market, where the exchangers are(should be) independent entities, ALL of them to have the same price when they certainly don't have a "the same" order book(same clients, same orders) ? How is that come?

Can someone explain ?

without a "central" committee that decide price and make right and properly decision, only people "set" the right value.
It's like "far west"... you can also sell 1 btc for 10k $ or 1$ by convention I think best price is from preev.com

Correct but each exchanger has completely different orders(big, small), the number of orders are not the same too.
Example:
OKcoin claims to have a volume of 50,718.58   BTC
Bitstamp : 32347 BTC

Even so, their price is ALMOST similar. OKcoin = 369,7 USD  and Bitstamp 370 USD

The price should be made by sell and buy orders.  Remember, we are taking about "independent" companies and not a cartel. What kind of coincidence is that one exchanger to have the same kind of orders with other exchanger from other part of the world, DAILY?

[randy8777]

most exchanges are following china and that results in the prices being nearly the same except a few exchanges where the difference can be $5-$10 and some times even more than that. different exchanges have different traders, so the price may be a bit different. that allows us to buy up the cheaper coins there, and sell them at the other exchange where the price is fairly higher. it's called arbitrage trading. i have done it a few times by buying at btc-e and selling on bitstamp.

[Xmaseven]

How is it made the Bitcoin price?

How is it possible in a so called decentralized market, where the exchangers are(should be) independent entities, ALL of them to have the same price when they certainly don't have a "the same" order book(same clients, same orders) ? How is that come?

Can someone explain ?

without a "central" committee that decide price and make right and properly decision, only people "set" the right value.
It's like "far west"... you can also sell 1 btc for 10k $ or 1$ by convention I think best price is from preev.com

Correct but each exchanger has completely different orders(big, small), the number of orders are not the same too.
Example:
OKcoin claims to have a volume of 50,718.58   BTC
Bitstamp : 32347 BTC

Even so, their price is ALMOST similar. OKcoin = 369,7 USD  and Bitstamp 370 USD

The price should be made by sell and buy orders.  Remember, we are taking about "independent" companies and not a cartel. What kind of coincidence is that one exchanger to have the same kind of orders with other exchanger from other part of the world, DAILY?

there is different liquidity in each exchange, different level of tx fees... withdrawal to some country and not to some other... or manage a fiat and not another...

[Astargath]

Because if one exchange had bitcoin worth 200$ and other had bitcoin worth 500$ then everyone would go to the first one buy bitcoins there and then go to the second one and sell for 500, giving 300$ profit for every bitcoin for free. There is no way that's going to happen, I mean why would someone sell bitcoins for 200$ if he knows there is a place where he can sell for 500$?

[BillyBobZorton]

Everyone is making it thought a constant influx of buying and selling, now the question is who is manipulating it, well, the massive fud campaign by Mike Hearn and his r3 friends are the big responsibles of the price debacle recently. But we will recover, no doubt about this, and stronger than ever we will come back.

[Xmaseven]

sometimes bad exchange could give a better price than other...
well when you see a good difference...and this difference is too good....turn around and go away

[buyinbtc]

bitcoin users, with their selling/buying, or when they panic, also china changes bitcoin price, and bitcoin spreading around world

[Oscoda]

 We are all making the price, its a combination from sellers and buyers that makes the market price, its like any market price.
The bitcoin is unstable if there will be a big amount sold to another one the price will sure get higher.

[pearnapple]

Mostly, it's because bitcoin users, and their panic, then they'll sell/buy bitcoins for funny prices

[Facilitator]

The value of the bitcoin depends on its usage. If it is used by many people, the value will be high. But the price will change a lot.

[BruceLee007]

How is it made the Bitcoin price?

How is it possible in a so called decentralized market, where the exchangers are(should be) independent entities, ALL of them to have the same price when they certainly don't have a "the same" order book(same clients, same orders) ? How is that come?

Can someone explain ?

I think that China changes price of bitcoin for sure, then  of course supply and demand, more people wants to buy bitcoin, price rises, people sells it, price falls, and things like halving rises price too

[Oriannaa]

How is it made the Bitcoin price?

How is it possible in a so called decentralized market, where the exchangers are(should be) independent entities, ALL of them to have the same price when they certainly don't have a "the same" order book(same clients, same orders) ? How is that come?

Can someone explain ?

I think that China changes price of bitcoin for sure, then  of course supply and demand, more people wants to buy bitcoin, price rises, people sells it, price falls, and things like halving rises price too

Yeah I do agree china does play a vital role.

Just hope to god that one of those exchanges for china dont end up like being a mt.gox situation though. Thats the last thing we need..

[mayax]

so, there is a cartel of exchangers, right? otherwise, the price cannot be ALMOST the same ( few dollars difference)