Silk Road forums

Support => Customer support => Topic started by: anonymous3210 on February 24, 2013, 03:15 am

Title: SR exchange rate is much worse than mtgox...why?
Post by: anonymous3210 on February 24, 2013, 03:15 am
I don't see any rhyme or reason for the difference in exchange rates...btc/usd is below $29, but mtgox is at $29.5. why is this?
Title: Re: SR exchange rate is much worse than mtgox...why?
Post by: railroadbill on February 24, 2013, 06:51 am
Thats what im trying to figure out, there are so many ways to measure the current btc rate its hard to tell without an official answer. I guess the reality is that it is what it is, but it would be nice to know so we can match it against other non SR transactions.
Title: Re: SR exchange rate is much worse than mtgox...why?
Post by: slicker on February 24, 2013, 07:05 am
sr uses the mt.gox 24-hr avg exchange rate. first row 2nd to last column here http://bitcoincharts.com/markets/
Title: Re: SR exchange rate is much worse than mtgox...why?
Post by: anonymous3210 on February 24, 2013, 08:24 am
how do you give rep? i'd give you some if i knew how!
Title: Re: SR exchange rate is much worse than mtgox...why?
Post by: sleepyeyes2k2 on February 24, 2013, 08:29 am
I just answered this in another thread.  Can't remember which one, or I'd have posted the link.   :o

Mt. Gox and Bitfloor are exchanges.  They provide real-time market date for the purpose of trading BTCs and USDs.  You need real-time data in an exchange, because of market fluctuations. 

SR (and BMR) are markets.  Their exchange rates are based on snapshots taken throughout the day.  They are accurate to the time they were taken, and the snapshots are taken within hours of one another.  You don't need real-time data in a market because things have a way of evening out and because it's difficult.

Imagine you visited another country that accepted USD but had a different national currency.  At the beginning of the day, merchants across that country would be notified of the exchange rate.  Maybe your 1USD is worth 3.14 dinar (Qatar).  So, around lunchtime, the exchange rate changes, and on the stock market they're trading 3.16 dinar for every USD.  You're not going to notice as you go about your business at the mall.  You aren't likely to get the different exchange rate, either, unless you use an ATM. 

Comparing the Road to Mt. Gox is comparing apples to oranges.  They have completely different positions in the industry, and use a different standard for reporting exchange rates.