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Topic: Economics of bitcoin exchange rates (Read 1571 times)

hero member
Activity: 728
Merit: 500
165YUuQUWhBz3d27iXKxRiazQnjEtJNG9g
January 17, 2012, 07:49:00 PM
#2
https://en.wikipedia.org/wiki/Arbitrage

Read that then let me know if you're still confused.
donator
Activity: 848
Merit: 1078
January 17, 2012, 06:32:33 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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