New to bitcoin many different prices why??

[claudiab]

Hi everybody,
I am very new to cryptocurrency it has been only few days I have started to investigate on line.
My question is why there is different price and not a small one between two exchanges: bitstamp and bitfinex. I was looking yesterday and the price for BTCUSD was trading around 2517 on bistamp and 2418 on bitfinex and this is huge around 4 %!!.
It is great that there are several exchanges where you can trade bit[Suspicious link removed]d for his development but if there is too many speculators and different prices this could heart bitcoin and the philosophie for what it was created you don't think so?
Other thing can someone please explain the different information I found on  cryptocompare.com in the column details :

DifficultyAdj.     BlockRR.      BlockNo.   Network H/s
2016 blocks      50 %          469.856,0  4.858.828.264,2

Thanks a lot for your time and your help.
Have a great week.

[OmegaStarScream]

Bitcoin price is based on supply and demand so Its very normal that the price is not the same in the different exchanges. The huge difference though is mostly caused by news/new laws/exchanges stopping withdrawals to certain banks etc. pretty much a lot of factors.

DifficultyAdj.     BlockRR.      BlockNo.   Network H/s
2016 blocks      50 %          469.856,0  4.858.828.264,2

I'm not sure about BlockRR. The first is how often the network difficulty[1] changes, BlockNo is the number of the last block mined, Network H/S is the hashing power that is generated by the miners.

[1] https://en.bitcoin.it/wiki/Difficulty

[claudiab]

Hi OmegaStarScream,
Thanks for your reactivity.
Today there is less spread between Bitstamp and Bitfinex but still a 1.45% (around 40 box).
I think that BlockRR. 50% should be the rate reduction every 210000 blocks but I am not sure.
I still find very curious to have such a spread for the underlying between two exchanges, I used to trade forex and futures and made some arbitrage but it seems that if you open a buying position on btcusd on one exchange and sell on the other you've got two open positions one on the buying side and one on the selling one and they don't compensated together.
Have a good day.
Cheers.

[BurtW]

To find out why there are price differences between the various exchanges just try to sign up at all of them and then try to transfer your country's fiat currency to or from each of them.  You will find just how difficult it is to do these things.

The price differences basically price in the differences in the difficulty in signing up (KYC and AML issues), the level of difficulty doing fiat money transfers to/from the exchanges and the costs of doing fiat money transfers to/from the exchange.

[Wipro]

To find out why there are price differences between the various exchanges just try to sign up at all of them and then try to transfer your country's fiat currency to or from each of them.  You will find just how difficult it is to do these things.

The price differences basically price in the differences in the difficulty in signing up (KYC and AML issues), the level of difficulty doing fiat money transfers to/from the exchanges and the costs of doing fiat money transfers to/from the exchange.

Its all depends on the market capital value of bitcoin, trading site or direct exchanges will show the value according to the value defined by the traders in the every site. I hope localbitcoins exchanges will give out the high amount for the exchange the bitcoin but go with the high trust traders in the site.

[ActiveP]

This behavior is not unique to Bitcoin, but you can see it more obviously because the volatility is very high.

The price is also different on Forex for say EUR/USD conversion depends on which market you are trading, but because volume is so high and volatility low we almost don't notice the price difference.