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AuroraSpjall

The official Auroracoin discussion board

Auroracoin price discovery within Iceland

Umræður og vangaveltur varðandi markaðinn og verðið á Auroracoin
- Discussion and speculation about Auroracoins price and market growth

by Skarfurinn » 08 Apr 2015 17:26

Soon we will have an Icelandic exchange where Auroracoin can be traded with isk.

Will the price find it's own way within Iceland or will it attach itself to the price on foreign exchanges?
I would have written a shorter letter, but I did not have the time. - Blaise Pascal
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by BioMike » 08 Apr 2015 19:56

I hope it can attach itself to the isk price, no need for bitcoin's volatility in price determination.
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by Dinobotta » 08 Apr 2015 21:09

I posted on this topic on a different thread, http://auroraspjall.is/viewtopic.php?f=9&t=10#p589, I'll leave my thoughts here also:

I'm sure there will be different prices on the Icelandic exchange and other exchanges. But when the price gap will become significant I'm sure someone in Iceland will take the arbitrage by exporting or importing AUR between the exchanges. If the price is higher on Cryptcy (or other exchanges), people will export AUR from the Icelandic exchange without any trouble. On the other hand if prices are higher on the Icelandic exchange someone who has income in foreign currency or is traveling abroad and gets to buy USD with ISK, can take advantage of the arbitrage and correct the price by selling the USD for BTC and then later sell BTC for AUR on these other exchanges and ending up with selling AUR for ISK on the Icelandic exchange.

So the only price difference can be a higher price on the Icelandic exchange, but only for limited time periods.
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