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Author Topic: Economics of bitcoin exchange rates  (Read 1370 times)
Seal
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January 17, 2012, 11:32:33 PM
 #1

I've noticed that however much the the USD price for bitcoin fluctuates the relative GBP price moves at an almost identical rate which is pretty much the same as the USDGBP exchange rate on the open market.

Can anybody explain the economics behind how it stays balanced at all times? I'm guessing it must be related to bots trading and matching against current exchange rates?

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January 18, 2012, 12:49:00 AM
 #2

https://en.wikipedia.org/wiki/Arbitrage

Read that then let me know if you're still confused.

      War is God's way of teaching Americans geography.  --Ambrose Bierce
Bitcoin is the Devil's way of teaching geeks economics.  --Revalin 165YUuQUWhBz3d27iXKxRiazQnjEtJNG9g
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