a new way to measure exchange rates
about the bitcoin index
Bitcoins are identical - no bitcoin is different to another. Bitcoins should therefore trade at the same amount in exchange rate adjusted terms (like a Big Mac) across countries. However, like the Big Mac, there are country-specific reasons why bitcoins do not sell for the same exchange rate adjusted price.
The bitcoin index collects data on how much people pay for bitcoins in their local currency around the world. These prices are then converted back into USD terms. This 'implied exchange rate' is then compared the official exchange rate and presented visually.
In most cases, bitcoins sell at a premium or discount. The difference between the implied and official rates changes over time. Explaining why these deviations occur reveals interesting phenomena worldwide that appear in the data before hitting official news sources. This creates opportunities.
Some examples of the bitcoin index metrics
Index and volume