THE PRICE YOU SEE
price in luno
.The price of digital currencies like Bitcoin and Ethereum is determined by supply and demand: people who want it (buyers) and people who have it (sellers). Luno is the platform connecting these buyers and sellers; Luno does not determine the price of Bitcoin or Ethereum.
During surge periods, like over the past week, demand is much higher than supply since more and more people want digital currency and, something most people prefer not to see, just because the price is going up
Occasionally during these runaway prices —up or down— we find that some customers are upset about the high price they paid (or the low price they received) for their digital currency.
We want to make it clear: Luno doesn’t set the price and we don’t benefit from individual transactions that are higher or lower than the expected market price. Luno only levies a small fee for each successful transaction. The ‘higher’ or ‘lower’ values paid are a function of the market and is settled between these respective counterparties.
Since transactions aren’t between, say, a buyer and but between a buyer and a seller, it is impossible to reverse or refund a transaction. Reversing a Bitcoin purchase would mean we need to reverse transactions not just on the buyer’s account, but on one, two or one hundred sellers’ accounts, who all already agreed to the price on that transaction in the first place.
Again, this is not just the case with Bitcoin, but with other financial instruments such as stocks, bonds, the housing market and so on. People who trade a lot of these instruments are very familiar with these dynamics and if you are not an experienced trader or investor, it’s very important that you familiarize yourself with this.
Amazing Work
ReplyDeletebro