Your website and other exchanges list the price for Bitcoin in Chinese Yuan with a 16% discount. Why? As of Viewing the exchange prices Bitcoin at $1323 USD and at 7922 Yuan. This is a 6 to 1 exchange rate Yuan to dollar. However, the current exchange Yuan to dollar is more like 7 to 1. Why the disparity? I’m in China and can buy Bitcoin on Localbitcoins.com from Chinese dealers and the lowest price is 9260 Yuan which is at the actual true exchange rate of 7 to 1. I’m just curious if there is a mistake or if there is a cheaper way to buy if one has Yuan?? Thanks, Miles
Hey Miles, nice to meet you :)
The price we show on our site is taken from the major Chinese exchanges (i.e. BTCC, OKCoin and Huobi). It is usually lower than the price you will find on Local Bitcoins from private dealers. Different exchanges show different prices that’s why while a US exchange can show $1323 the Chinese exchange can show 7922 Yuan, they are not correlated. The price depends on the different sellers and buyers on each exchange.
At any given moment you’ll find a discrepancy between exchanges – even different USD prices between exchanges. Hopefully if the gap becomes big enough people will move to the cheaper exchange and the gap will eventually close. That’s not always the case though. For example, in India, after the government banned the 500 and 1000 Rupee notes people rushed to buy Bitcoin. This caused the Indian exchange rate to be $100 higher than all other exchanges in the world.
Hope this is a bit clearer now.