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Poloniex & coinbase - Arbitrage


Guest plutopark

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Guest plutopark

For the third day in a row, I've noticed that the coinbase Buy Bitcoin price is about $70 USD lower than the last trade price for Bitcoin on Poloniex. Does anyone have any comments? At this very moment, it's:

      Poloniex:  $1319.85

      coinbase: $1253.58

 Something just doesn't make sense. Any comments?

Edited by plutopark
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Usually when there is such difference is because it is hard or impossible to close the arbitrage loop. BTC are always easy to move around, but what about USD and USDT? Can you easily swap them between Poloniex and coinbase?

There are tons of arbitrage opportunities in crypto world, but most of the timethey involve FIAT, that are very hard to move around and another limitation is the poor API of exchanges.

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21 minutes ago, Greeny said:

Why is tether losing value though, I thought it was designed to always be $1.

 

I think in a perfect world it would be $1.000...USD = $1.000...USDT, but one important thing to notice in the historical price of USDT is that it is always valued at 1USD or less, but never greater than 1USD,  so the only sensible reason I can think of why there would be price deviation (lower value) from actual USD is that temporarily there are more USDT in the network than actual USD in reserves.  My guess for this is that when you are dealing with fiat vs digital currency the former involves more delays and this is reflected temporarily in the lack of parity of actual USDs with the virtual ones.

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Guest plutopark

USDT is supposed to be like money market account, where one USDt = one USD. If not, then something is seriously, SERIOUSLY wrong. The question is, Why aren't the exchanges talking about it? What are they hiding? Something is up. First Bitfinex... now, this? Is the whole crypto world about to implode?

Edited by plutopark
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Guest plutopark

Besides that, Bitcoin on Coinbase is not measured against USDT - It's measured against USD! It is how much USD it costs the customer to buy one Bitcoin. So, all theories about USDT affecting the price are thrown out with the dirty mop water.

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37 minutes ago, plutopark said:

Besides that, Bitcoin on Coinbase is not measured against USDT - It's measured against USD! It is how much USD it costs the customer to buy one Bitcoin.

It's interesting to note that the measurement of the price of some crypto is now sometimes measured against units of other crypto.  It used to always be measured against fiat, and specifically USD. 

I think we will see the day when the different fiats will be measured against... something universal.  Of course I hope this is XRP, but I'd be satisfied with XRP just getting a decent share of the pie. 

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