Bitcoin Price Anomalies: Peer-to-Peer (P2P) Trading on LocalBitcoins

Mark Holub, Jackie Johnson

Research output: Contribution to journalArticle

Abstract

The authors study trading behavior on Local Bitcoins, an alternative platform to conventional exchanges that allow investors all over the world to trade Bitcoin on a peer-to-peer basis. In particular, the authors examine the anomalous trade prices on Local Bitcoins, which are settled at values significantly different from market prices. As Local Bitcoins is not regulated in the way some exchanges are regulated, the persistence of the anomalous prices suggests that traders may be able to take advantage of the phenomenon to make substantial gains.

Original languageEnglish
Pages (from-to)127-139
Number of pages13
JournalJournal of Alternative Investments
Volume22
Issue number1
DOIs
Publication statusPublished - 2019

Cite this

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abstract = "The authors study trading behavior on Local Bitcoins, an alternative platform to conventional exchanges that allow investors all over the world to trade Bitcoin on a peer-to-peer basis. In particular, the authors examine the anomalous trade prices on Local Bitcoins, which are settled at values significantly different from market prices. As Local Bitcoins is not regulated in the way some exchanges are regulated, the persistence of the anomalous prices suggests that traders may be able to take advantage of the phenomenon to make substantial gains.",
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Bitcoin Price Anomalies : Peer-to-Peer (P2P) Trading on LocalBitcoins. / Holub, Mark; Johnson, Jackie.

In: Journal of Alternative Investments, Vol. 22, No. 1, 2019, p. 127-139.

Research output: Contribution to journalArticle

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AB - The authors study trading behavior on Local Bitcoins, an alternative platform to conventional exchanges that allow investors all over the world to trade Bitcoin on a peer-to-peer basis. In particular, the authors examine the anomalous trade prices on Local Bitcoins, which are settled at values significantly different from market prices. As Local Bitcoins is not regulated in the way some exchanges are regulated, the persistence of the anomalous prices suggests that traders may be able to take advantage of the phenomenon to make substantial gains.

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