Topic: Local bitcoins prices (Read 819 times)
no exchange working for this its p2p sells and sellers set prices by them
It's peer to peer and that's what is great about it.
Here's one of my pricing formulas:
Derivation:
http://localbitcoins.blogspot.com/2013/06/this-is-first-in-series-of-posts.html
Code:
max(max(max(mtgoxUSD,bitstampUSD), USD_24h),USD_24h+(1.5*(max(bitstampUSD,mtgoxUSD)-USD_24h)))*1.06
Derivation:
http://localbitcoins.blogspot.com/2013/06/this-is-first-in-series-of-posts.html
local bitcoins price is set by the advertiser
EG if you want to sell YOUR bitcoins YOU put down a price advert YOU want to sell at
EG if you want to buy bitcoins YOU can put down a price advert YOU want to buy at.
leaving others to either list their prefered price adverts or just trade with you if your price looks good enough.
the real question is "what are the factors people base their prices on"
the answers are:
popularity: availability within the 10 mile range of them - if its very competitive you will see alot of people out bidding each other
eagerness: how eager or desperate someone is to sell or buy - if very eager to sell you would put a lower then competitor price, thus getting more sales.
most people use the averages of exchanges like MTGOX, BITSTAMP etc converted to local currency and then vary the price a little bit depending on popularity in their local area and their own personal eagerness.
EG if you want to sell YOUR bitcoins YOU put down a price advert YOU want to sell at
EG if you want to buy bitcoins YOU can put down a price advert YOU want to buy at.
leaving others to either list their prefered price adverts or just trade with you if your price looks good enough.
the real question is "what are the factors people base their prices on"
the answers are:
popularity: availability within the 10 mile range of them - if its very competitive you will see alot of people out bidding each other
eagerness: how eager or desperate someone is to sell or buy - if very eager to sell you would put a lower then competitor price, thus getting more sales.
most people use the averages of exchanges like MTGOX, BITSTAMP etc converted to local currency and then vary the price a little bit depending on popularity in their local area and their own personal eagerness.
Who sets the price for localbitcoin.com? Are the prices connected to one of the main exchanges? I see a range of $25 on localbitcoins.com.
Its individual sellers who choose a percentage to sell at over/under a certain exchanges price.
I could go on there and say $1,000,000 per BTC
Who sets the price for localbitcoin.com? Are the prices connected to one of the main exchanges? I see a range of $25 on localbitcoins.com.
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