Why is it that BTC are more expensive in Euros then in $

[Ninietz]

Hi, can anybody explain to me why it is that BTC are more expensive in Euros then in $; if one compares the prices of different exchanges?

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[kkaspar]

Because more Americans play the bitcoin gamble then Europeans, and USD is also more widely used outside USA or EU. When most of the money is taken out in USD, then a big part of the EUR market needs to be converted to USD before it's taken out. So the need of conversion rates also cause the higher price

[trace666]

I have not observed the phenomenon that you are describing.
Which one of the two is currently trading higher seems to change constantly and is a function of limited liquidity on the exchange.
EUR volume is lower in general and therefore more subject to be affected by larger individual trades.

[Kungfucheez]

Hi, can anybody explain to me why it is that BTC are more expensive in Euros then in $; if one compares the prices of different exchanges?

What exactly do you mean? $1USD doesn't equal 1Euro

[empoweoqwj]

Hi, can anybody explain to me why it is that BTC are more expensive in Euros then in $; if one compares the prices of different exchanges?

You mean at one exchange, or across different exchanges? Which exchange/s are you comparing prices?

[mmeijeri]

Have a look at the newly updated coinaverage.com which now supports many more currencies as well as cross rates.

[Ninietz]

What I mean is this:
take MtGox for example:

EUR: 685
USD: 949

Now using XE.com;
EUR 685 = 931 USD
USD 949 = 698 EUR

Yesterday the difference was bigger

BTC-E

EUR: 622
USD: 843

Now using XE.com;
EUR 622 = 845 USD
USD 843 = 620 EUR

My question actually is: how to switch from Eur trading to  USD trading without losing too much in value.
Thx in advance.

[cozytrade]

In your example case,
BTC/EUR is cheaper than BTC/USD in mtgox
BTC/EUR is more expensive than BTC/USD in btce

If you meant to convert EUR to BTC to USD, you'd better use mtgox.
You seem to know the answer don't you?

Of course withdrawal issue should be considered apart.
That would be one of the reasons of the price gap in mtGox between EUR and USD too.

[byronbb]

look at btce eur/usd market. Its like 200 pips lower than the fx markets.

[Sindelar1938]

Purely a supply demand/liquidity thing I would imagine
Just more action (and speculation) in the US$ universe

[Hashcesar84]

cos every people buy it in $ so it has a bigger market in $ than in €. If you want to buy some coins in € from asks you will make the price grows so fast (cos there are big difference between offers).

[skivrmt]

Because more Americans play the bitcoin gamble then Europeans, and USD is also more widely used outside USA or EU. When most of the money is taken out in USD, then a big part of the EUR market needs to be converted to USD before it's taken out. So the need of conversion rates also cause the higher price

It's fairly simple, there is a lot more trading volume across all the changes in USD than there is in EUR.  When there is more trading there is more liquidity, when there's more liquidity the price is more accurately reflected on what the "real" price is.

On that note I'm sure a lot of the volume being generated is pure arbitrage play on the slight price differences (although very difficult).  There is no arbitrage play on the Mt Gox exchange simple because you can't withdrawal money out in USD, and even Euro / SEPA transfers are being held lately.  One of the main reasons you keep seeing the volume decreasing on the exchange of the months.  I mention it would be difficult because unless you are a bank, or have access to be able to convert Euro to USD for less than 1-2%, it's probably not worth trying to do any arbitrage trading on the slight price differences.

[empoweoqwj]

Because more Americans play the bitcoin gamble then Europeans, and USD is also more widely used outside USA or EU. When most of the money is taken out in USD, then a big part of the EUR market needs to be converted to USD before it's taken out. So the need of conversion rates also cause the higher price

It's fairly simple, there is a lot more trading volume across all the changes in USD than there is in EUR.  When there is more trading there is more liquidity, when there's more liquidity the price is more accurately reflected on what the "real" price is.

On that note I'm sure a lot of the volume being generated is pure arbitrage play on the slight price differences (although very difficult).  There is no arbitrage play on the Mt Gox exchange simple because you can't withdrawal money out in USD, and even Euro / SEPA transfers are being held lately.  One of the main reasons you keep seeing the volume decreasing on the exchange of the months.  I mention it would be difficult because unless you are a bank, or have access to be able to convert Euro to USD for less than 1-2%, it's probably not worth trying to do any arbitrage trading on the slight price differences.

That's right. The EUR market is very thin on most markets, so doesn't reflect the "real" price as well as the USD price does.

Arbing between Gox and anywhere forget it ... can't really arb when withdrawals take six months

[NUFCrichard]

I think the answer is that it isn't more expensive in €.
On Bitcoin.de the $ price would give a € price of 600€.  It is at 599€, basically the same.

[mmeijeri]

I think the answer is that it isn't more expensive in €.
On Bitcoin.de the $ price would give a € price of 600€.  It is at 599€, basically the same.

Check out the link I posted above, it gives an overview of prices in various currencies, including "cross rates". There are real differences:

https://bitcoinaverage.com/#USD

I'd add a screenshot, but I can't find a button for attachments.