HomeНаука и техникаRelated VideosMore From: aantonop

Bitcoin Q&A: Price premiums and arbitrage

437 ratings | 25109 views
How do we handle geographical arbitrage? Demonetisation and bitcoin price premiums in India. Arbitrage is the process of diminishing the difference in price in open markets. If differences in price emerge, they can be exploited for profit until the difference goes to zero. The problem is not bitcoin, the problem is currency controls. Bitcoin has no location as a global network, it was "in the US" to start with or "in India" to end with. What arbitrage activity tells you is not that bitcoin is worth $1200 here, but that rupees are discounted 20% against hard assets, including other national currencies.The market is sending you a signal. A currency that cannot move across borders is worth less. This is part of a talk which took place at the JW Marriott Sahar (International Airport) on March 26th 2017 in Mumbai, India: https://www.townscript.com/e/bitcoin-talk-by-the-world-famous-andreas-antonopoulos-203132 RELATED: Aadhaar and blockchain identities - https://youtu.be/GylSvJf53zI Remittances & smuggling in Venezuela - https://youtu.be/RRXecXfWARw Divisibility and deflationary monetary policy - https://youtu.be/xhLgxX_wU6E Who determines the value of bitcoins? - https://youtu.be/DucvYCX1CVI Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and well-respected figures in bitcoin. Follow on Twitter: @aantonop https://twitter.com/aantonop Website: https://antonopoulos.com/ He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters. THE INTERNET OF MONEY, v1: https://www.amazon.co.uk/Internet-Money-collection-Andreas-Antonopoulos/dp/1537000454/ref=asap_bc?ie=UTF8 MASTERING BITCOIN: https://www.amazon.co.uk/Mastering-Bitcoin-Unlocking-Digital-Cryptocurrencies/dp/1449374042 [NEW] MASTERING BITCOIN, 2nd Edition: https://www.amazon.com/Mastering-Bitcoin-Programming-Open-Blockchain/dp/1491954388 Subscribe to the channel to learn more about Bitcoin & open blockchains! Videography: Zebpay Bitcoin India Music: "Unbounded" by Orfan (https://www.facebook.com/Orfan/) Outro Graphics: Phneep (http://www.phneep.com/) Outro Art: Rock Barcellos (http://www.rockincomics.com.br/)
Html code for embedding videos on your blog
Text Comments (43)
MrMishal03 (7 months ago)
If what he is saying is true then Indians earning $s in the USA should send money to their PARENTS back home in the form of bitcoin. Thereby cancelling out transfer charges and their parents can encash the bitcoin into rupees at a profit. (Please let me know if I am wrong).
Patrick LK (9 months ago)
Why would this be illegal?
Du Guowei (11 months ago)
Great insight. Im learning so much about currency from you andreas.
Rajan Rangarajan (1 year ago)
He is talking Global socialism. All over the world bitcoin is of same value . this is NOT possible since Milk does not cost the same in USA and India and Gas and Bread and neither one person is paid same amount for work/hr in USA and India. Bitcoin is only successful as a universal currency if the whole world is EQUAL. Socialism. Techno-socialists.
nske (9 months ago)
I think you either did not listen the answer carefully or did not understand the question.
Luca Aliberti (1 year ago)
How in the world are you saying that arbitrage is illegal?????
zealot316 (1 year ago)
holy fuck
Numeris (1 year ago)
Great Video! Bitcoin is popping right now. But many people don't know the risks. And they don't get what it is and why its valued. Essentially, you want to hold onto it for a long time. Because there's too much volatility in the short term.
Stevie Dee (1 year ago)
This is the same logic for gold and silver relative to fiat currencies. In my opinion. So Bitcoin is telling you something as is gold and silver again relative to fiat currencies
Zach Says (1 year ago)
He's only half right.
xZeroTheGreat (1 year ago)
Point where he's wrong. Market's doing price discovery work, very important work
David B (1 year ago)
answer starts at 1:09 her q: why is BTC more expensive in India than US?
Josh Owens (1 year ago)
Found this comment at 1:08, that was so hard to listen too, lol.
Jurij (1 year ago)
thanks for saving 1m of my life ;D
Rustico de Jesus (1 year ago)
So, if somebody in India wants to buy Bitcoin with USD instead of Indian Rupee, would that person pay the same amount in USD as somebody in USA would pay?
Kamal Saidi (1 year ago)
he has still to convert rupees into Dollar to buy bitcoin so it would be still the same!
xZeroTheGreat (1 year ago)
Not necessarily. It depends again on amount of pressure on trans-border wiring. Maybe USD as hard to move from India to US as Rupees or some % as hard
Chuck Williams (1 year ago)
To my understanding, yes.
Mining Pioneers (1 year ago)
Mr. Andreas, you are the best representative/speaker about the king (BITCOIN)
michael gusovsky (1 year ago)
Brilliant talk! It's sad that the Indian people suffer under the arch-criminal modi and his war against "corruption" which in reality is a war against the common man who suffers and starves. To the gallows with modi, and may India advance and prosper once he is gone.
Incremental Crypto (1 year ago)
Wow, what a clear and illustrative breakdown. It starts to make the other crytpo gains make more sense, money wants to change hands. In crypto land arbitrage happens fast creating value through trade. We can see the value harvested via temporary or long term drops in price, such opportunity for solutions.
CauliflowerEars1 (1 year ago)
Is the risk of sudden unplanned devaluation of the Rupee also factored into the heavy discount?
xZeroTheGreat (1 year ago)
Yes, it'a a combination. People always tend to buy good money and to spend and sell bad money. Good money is the ultimate store of wealth
logans run (1 year ago)
No better explainer of bitcoin out there than my mate andreas.
Saba Shevardnadze (1 year ago)
Andreas is definitely one of the greatest Greek philosophers of modern times
Karina Wooten (1 year ago)
This is Jesus' BTC wallet. You know what to do. 1BM1nqQxa2yJt6WPAogxrEftUX9kPuMMii Thanks
vigilant_cat (1 year ago)
Or maybe "geek" philosophers
Alvin Hollinger III (1 year ago)
Yes! Digital Socrates!
I agree, so many of his talks are so good and more importantly, truthful and mind opening (to the monetary and economic shit we have in our societies)
C.A. K (1 year ago)
he is a genious.
Multispek mutvimanex (1 year ago)
when i hear indian accent i directly associate it with a scammer
michael gusovsky (1 year ago)
Multispek mutvimanex oh, haha. Still sounds like a you problem. I never pick up calls from unknown numbers, so I've never encountered that.
Multispek mutvimanex (1 year ago)
michael gusovsky never hanged out, just the 20+ scammer phone calls ive recieved..
michael gusovsky (1 year ago)
Multispek mutvimanex sounds like a YOU problem, hanging out with the wrong Indians
P Murphy (1 year ago)
A $1800 bitcoin will be a great deal this time next month. 😁
Suzumi (8 months ago)
Gavin Brinck (1 year ago)
Bitcoin will continue to be a 'hard asset' next month too !
Zero Hoots (1 year ago)
PedestrianRage (1 year ago)
$1200 a BTC sounds like a got damn deal these days
Hitsuga Aorusaki (8 months ago)
Suzumi (8 months ago)
lmao even more now
Deepankar Kapoor (1 year ago)
nailed it as usual!
Parietal Polymath (1 year ago)

Would you like to comment?

Join YouTube for a free account, or sign in if you are already a member.
The miners are interested in finding a nonce which will create a hash with certain characteristics. Lastly, they have to find a random value that they included in the header, which makes the computed hash over that header a value below a particular target. In other words, they do not have to agree to change the protocol. Though there are a few gold diggers attempting to fill their pockets and certain projects that aren`t viable and shouldn`t be encouraged in any way. For users running a complete node, it is a fairly painless procedure to upgrade the software to the newest version. The process of locating a new block to extend the blockchain is known as mining. Proof-of-Work systems utilize cryptographic hashing algorithms to create the action of mining a block a complicated computation. Our software is totally incompatible with altcoins. Changes and modifications to how that it works need to be approved by consensus and every CPU gets a vote. To start with, it`s essential to realize that hardware wallet users control entirely their private keys. Whether you`re bullish or bearish on Bitcoin Gold, you ought not lose your coins as a result of careless mistakes! On the 1 hand, it may result in making a coin that solves all the pending issues. There`s no currency or digital asset named Bitcoin Core. Bitcoin Cash increases the range of transactions that may be processed per block. You could send any quantity of money, any place in the Earth, almost at no cost. You`ve made some great money already on the market, but you want more. For a wealthy individual, BTC`s price premium may be viewed as a plus. For someone without lots of money, BCH`s low price may look like a great deal for Bitcoin. If you have some concerns about the worth of Bitcoin after all forks, you need to be ready for a drop. The distinction is that not all of these suffer the chain split. The primary problem is Bitcoin imposes a hard limit on the magnitude of a block, the location where transaction information becomes stored. The end result is many straightforward wallets, called SPV wallets and very commonly found on your phone, will be quite confused about which chain is Bitcoin. In Bitcoin, the most important reason is known as the network effect.