Is Coinbase really that much cheaper than Mtgox? - page 2.

dhenson

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Quote from: barbarousrelic on August 15, 2013, 11:24:50 PM

Thank you for your responses.

So now that the Mtgox price can't be considered anything resembling the 'real' value of Bitcoin, what (in your opinion) is the most reliable exchange price to use? Something that I can track on bitcoincharts.com ?

Whatever price someone is willing to pay is the real price. If 100 people are willing to pay $110 and 30 people are willing to pay $98 then the 'real' price is closer to $110 than $98.

Check out http://bitcoinaverage.com

DeathAndTaxes

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Quote from: barbarousrelic on August 15, 2013, 11:24:50 PM

Thank you for your responses.

So now that the Mtgox price can't be considered anything resembling the 'real' value of Bitcoin, what (in your opinion) is the most reliable exchange price to use? Something that I can track on bitcoincharts.com ?

In terms of volume bitstamp. That is likely what coinbase is using for setting price anyways. Still all the exchanges are within a few % of each other except MtGox which is a massive outlier to the upside simply because the price include a risk premium. The market is saying if you sell coins for USD on MtGox there is a significant chance you will never see that money. Now maybe MtGox fixes things in the future and if so we will see that risk premium decline but today the MtGox spot rate is essentially useless.

Nobody* uses it, even bitpay and blockchain.info switched to bitstamp for pricing.

* I have been informed the SR uses MtGox as the conversion rate for transactions so I guess once they stop using it, the rate will be a dead rate. MtGox rate could go to $1,000 tomorrow (and is possible in a loss of confidence by the market) but it doesn't magically mean somehow Bitcoins are worth more.

barbarousrelic

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Thank you for your responses.

So now that the Mtgox price can't be considered anything resembling the 'real' value of Bitcoin, what (in your opinion) is the most reliable exchange price to use? Something that I can track on bitcoincharts.com ?

001sonkit

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Or a simpler answer. MtGox's Fiat is worth less as they cant be withdrawn. Thus the coins seems to "worth" more on Gox

barbarousrelic

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Quote from: ArticMine on August 14, 2013, 10:49:00 PM

There are huge problems getting USD for that matter other fiat currencies EUR, CAD etc. out of MTGox so those who have USD, EUR, CAD etc trapped in MTGox are willing to pay a premium in order to get the money out in the form of BTC.

Oh, wow. I didn't realize it was that bad. Thank you.

ArticMine

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There are huge problems getting USD for that matter other fiat currencies EUR, CAD etc. out of MTGox so those who have USD, EUR, CAD etc trapped in MTGox are willing to pay a premium in order to get the money out in the form of BTC.

barbarousrelic

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So I'm trying out Coinbase for the first time, and I'm waiting on my account confirmation, but in the meanwhile it says "Buy Amount ----- at $98.87 each" - but mtgox is showing their last price at $112.50 There can't possibly be really that much difference (~14%) between the two, can there? What am I missing?

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