Minimal differences in price between cryptocurrency exchanges – Difficulty converting between fiat and crypto

By Steven Anderson April 9, 2019 Off

Ajeet Khurana, the CEO of Zebpay stated that the cryptocurrency ecosystem, on the whole, required only a dozen legitimate cryptocurrency exchanges.

When he talked about how the differences between cryptocurrency exchanges will be minimal when the industry achieves stability, he stated, “So if you purchase Bitcoin from exchange A versus exchange B, you get the exact same Bitcoin. You can’t say I got a higher quality one or a more genuine one. In light of that, I see in the open market, not more than a dozen, probably as few as five, but not more than a dozen and I am committed to being one of them.”   

He further spoke about his wish for a decentralized cryptocurrency exchange, which he thinks will happen soon.  Price Indices refers to the average price of a cryptocurrency in a given region or cryptocurrency exchange at a particular point in time.  Price indices are constructed to measure inflation. 

Bitcoin price index provides the price of the Bitcoin in different cryptocurrency exchange.  Similarly, TCAT tokens price index provides the price of the TCAT tokens in different cryptocurrency exchanges.

To understand volatility trends, it is important to understand the average change in price for a particular token.  High volatility can mean higher return for investors when they make them buy and sell decisions looking into the return achievable during a sample period. However, the volatility is also likely to be a significant barrier in the adoption of cryptocurrency.  If there were no volatility in cryptocurrency, it would not be interesting or worthy.  Volatility is here to stay with cryptocurrency and investors learn how to handle volatility.

Price index provides the data required to assess overbought and oversold conditions.  The price trend patterns help identify the heavy buys and sell-offs helping investors to identify the market situation.

The underlying technology required to aid with the mass adoption of cryptocurrency is possible only with improvement in mobile phone e-commerce and with the improvement and intervention of major payment processors like Visa, Mastercard, and Paypal Integrated.

Cryptocurrency will become more interesting in terms of value adoption only when the opportunity of cryptocurrency adoption presents itself. Despite coming with limitations, cryptocurrencies will be able to provide with potential advantages in terms of fees and censorship.  For as long as third party payment processors are not taking a fee, the fees are likely to be minimal.  It might be only the on chain transaction fee of a few cents. When the inconvenience of converting between fiat to crypto is sorted, the rest is going to be easy, which can happen only with a lot of work.