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
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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
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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/)
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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).
Why would this be illegal?
Great insight. Im learning so much about currency from you andreas.
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.
How in the world are you saying that arbitrage is illegal?????
holy fuck
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.
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
He's only half right.
answer starts at 1:09
her q: why is BTC more expensive in India than US?
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?
Mr. Andreas, you are the best representative/speaker about the king (BITCOIN)
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.
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.
Is the risk of sudden unplanned devaluation of the Rupee also factored into the heavy discount?
No better explainer of bitcoin out there than my mate andreas.
Andreas is definitely one of the greatest Greek philosophers of modern times
when i hear indian accent i directly associate it with a scammer
A $1800 bitcoin will be a great deal this time next month. ?
$1200 a BTC sounds like a got damn deal these days
nailed it as usual!
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