What is a Price Spread?

TheMerkle Price SpreadCryptocurrency users may have come across the phenomenon known as a “price spread”. As the name somewhat suggests, this spread revolves around the difference between various cryptocurrency prices across multiple trading platforms. Some companies seem more prone to these spreads compared to others. People looking for arbitrage opportunities may want to take a closer look at what a price spread has to offer them. Why Does The Price Spread Matter? In the world of cryptocurrency – and all of finance – investors are always looking to get the most bang for their buck. More specifically, they will buy assets and

TheMerkle Price Spread

Cryptocurrency users may have come across the phenomenon known as a “price spread”. As the name somewhat suggests, this spread revolves around the difference between various cryptocurrency prices across multiple trading platforms. Some companies seem more prone to these spreads compared to others. People looking for arbitrage opportunities may want to take a closer look at what a price spread has to offer them.

Why Does The Price Spread Matter?

In the world of cryptocurrency – and all of finance – investors are always looking to get the most bang for their buck. More specifically, they will buy assets and currencies they are interested in at the lowest possible price. This means they need to compare prices across different platforms and exchanges to score the best deal. In a way, the price spread opens up a lot of arbitrage opportunities for experienced traders.

As is the case with any opportunity that can be used for financial gain, it also causes some potential issues along the way. A price spread can be taken advantage of to buy assets and currencies at a lower price, and selling them on a different platform for a profit. That is, assuming one can transfer said funds in a timely manner before the prices have caught up between these specific platforms. That can be quite problematic when it comes to Bitcoin and other cryptocurrencies, as exchanges are not always sending out funds immediately.

Moreover, it can also lead to increased price volatility. If the Bitcoin price on exchange A is $30 higher compared to virtually all other exchanges, people will start to buy cryptocurrency from the lower-priced platforms. These coins are then transferred to the platform where the price is higher, and – hopefully – sold for a profit. This will inevitably result in the latter exchange receiving an influx of new coins being dumped on the market, driving the price down again.

Perhaps the biggest problems is how it can create a skewed representation of the actual value of said asset or currency. Since every financial tool is valued based on an average price taken from multiple platforms, a price spread can result in a slightly higher or lower price compared to what the majority of the market agreed on at that time. To some people, that may not sound like a big problem, even though it is evident representing an inflated or deflated price is not the best way to attract new investors. This is not just native to Bitcoin and cryptocurrency, mind you, but it is especially noticeable in this industry.

Looking at the current Bitcoin price right now, it is not hard to spot the price spread either. Bitstamp has a price that is $40 lower compared to Bitfinex, which puts Bitcoin at $18 less compared to BTC-E. These exchanges are all dealing with USD trades directly and do not represent a conversion rate from a foreign currency. The price spread only grows larger when comparing things to Asian exchanges, where users often pay a 5-15% premium to buy Bitcoin. Once we take all of these spreads into account, one could buy Bitcoin for as low as $2,080 and sell it as high as $2,200 right now. This spread confuses a lot of people, that much is certain.

This does not mean the price spread in finance is all bad, though. Experienced traders will find a way to make money from exploiting this gap in a legal manner. The volatility of affected assets and currencies will not go away anytime soon, though. It is evident the price spread is second nature to anything related to the financial sector, and cryptocurrency is no exception by any means.

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We Have a Lot to Celebrate During Bitcoin Pizza Day 2017

Today marks an important day for Bitcoin users all over the world. May 22nd is globally known as bitcoin Pizza Day. On this day one should eat a pizza in the presence of other people passionate about Bitcoin and cryptocurrency. If people purchase said pizza with bitcoin, it will allegedly even taste better. A lot … Continue reading We Have a Lot to Celebrate During Bitcoin Pizza Day 2017

The post We Have a Lot to Celebrate During Bitcoin Pizza Day 2017 appeared first on NEWSBTC.

Today marks an important day for Bitcoin users all over the world. May 22nd is globally known as bitcoin Pizza Day. On this day one should eat a pizza in the presence of other people passionate about Bitcoin and cryptocurrency. If people purchase said pizza with bitcoin, it will allegedly even taste better. A lot … Continue reading We Have a Lot to Celebrate During Bitcoin Pizza Day 2017

The post We Have a Lot to Celebrate During Bitcoin Pizza Day 2017 appeared first on NEWSBTC.

DNotes Releases Plans to Introduce DNotes 2.0 Upgrade; Launches New Bitcointalk Forum Thread

dnotes logoDNotes has announced that its upcoming DNotes 2.0 upgrade will include innovative features and applications relating to smart contracts, blockchain technologies, mobile applications, and global payments systems. The upgrade is expected to launch later in 2017, and the company is unveiling a new Bitcointalk Forum in preparation for the event. According to DNotes Co-Founder, Alan Yong, his team began expanding the company’s focus to include innovative technological development roughly one year ago. As Yong explains: “The technology in our industry was primitive when we first entered – with many unresolved problems and uncertainty about consumer preferences. As a result, we

dnotes logo

DNotes has announced that its upcoming DNotes 2.0 upgrade will include innovative features and applications relating to smart contracts, blockchain technologies, mobile applications, and global payments systems. The upgrade is expected to launch later in 2017, and the company is unveiling a new Bitcointalk Forum in preparation for the event.

According to DNotes Co-Founder, Alan Yong, his team began expanding the company’s focus to include innovative technological development roughly one year ago. As Yong explains:

“The technology in our industry was primitive when we first entered – with many unresolved problems and uncertainty about consumer preferences. As a result, we spent our first three years positioning ourselves for success by building our core infrastructure and supporting business ecosystem while the industry matured, as we waited for the optimal time to build on the code-base that blockchain technology offers. That time is now, and the DNotes team is totally committed to promoting our industry through technological leadership that will pave the way to mass acceptance of peer-to-peer digital cash in global commerce.”

The DNotes 2.0 platform will reportedly represent a significant upgrade from DNotes as it now exists. After extensive research and consideration, the DNotes team decided to switch from Proof-Of-Work (POW) to Proof-Of-Stake (POS). The new blockchain system will be accompanied by positive changes in the company’s CRISP program, and will reward stakeholders monthly with an annual target of approximately 2% on balances held in qualified accounts for 30 days or more to encourage long-term investment and savings.

There will be an additional stake reward, with a target of 2% annually, paid to stakeholders who participate in “staking” to support the network. The new reward system will be the backbone of the new CRISP 2.0 savings plans.

The upgrade to DNotes 2.0 will also involve a one-for-one (1:1) coin swap, with details about that swap to be announced closer to the upgrade’s launch. The DNotesVault will have a major role to play in simplifying the conversion process, according to Yong. The launch of the company’s new Bitcointalk Forum is designed to enable DNotes to reach out to as many of its stakeholders as possible, while also inviting the public to join in the conversation.

One of the most critical choices the company has made is the decision to develop its platform on C#, rather than the C++ Bitcoin Core source code. Yong describes the decision as the direct result of his belief that mass acceptance of digital currency can only be attained by focusing on businesses and other consumers. As he notes,

“We are committed to a vision of 100% conversion to C# – giving us the advantage of knowing our own technologies and applications intimately well. This will put us in a position of great technological leadership, particularly when it comes to the blockchain and smart contract applications that are currently in great demand. C# is popular in the corporate environment, and is easier to develop and maintain when compared to the traditional C++ Bitcoin Core source code. It is expected that C# architecture will become a more popular platform in the future. Stratis is one such coin that has active development on C#, and we appreciate their leadership and contributions to our industry.”

DNotes has a history of taking a different path than most other digital currency offerings. The company has been vocal about its founders’ desire to build a trusted digital currency that is accessible to people of all walks of life, with an ease-of-use that encourages its widespread acceptance.

The company’s strategic planning has created an ecosystem made up of many innovative building blocks. Those building blocks include CryptoMoms – a currency neutral site dedicated to encouraging female participation; DNotesVault – a free secure storage for DNotes’ stakeholders with 100% of its deposits guaranteed with verifiable funds; DCEBrief – a news and information media outlet that delivers news on the latest developments in the world of digital currency; and CRISPs – a family of Cryptocurrency Investment Savings Plans for people around the globe. CRISP’s core mission is to make the savings opportunity available to everyone. Yong believes that access to savings opportunities can bring greater financial freedom to millions.

In addition, Mr. Yong has written a business book, “Improve Your Odds – The Four Pillars of Business Success”, which is designed to help any entrepreneur looking to maximize his or her chance of business success by employing proven business principles.

Today, DNotes is already well-entrenched in innovative technology development designed to contribute to rapid growth in the cryptocurrency industry. According to Yong, the company’s commitment to develop on C# will allow it to be the most innovative, responsive, and efficient in serving increasing demand from businesses and consumers alike.

To learn more about the DNotes story, visit http://dnotescoin.com/the-dnotes-story-an-unfolding-big-bold-idea-of-global-scale/

Disclaimer: This is a paid press release, the product / service mentioned is not endorsed by The Merkle, always do your own independent research. If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.