Gemini Introduces Feature Meant To Discover The Best Daily Price For Bitcoin

By Daniel Zo Bitcoin, Exchange, Gemini

Since people first started trading bitcoin a couple of years ago, its price has always depended on a couple of aspects, such as trading volume, popularity, rate of adoption, press news, developments and so on.

According to recent reports, Gemini, one of the world’s biggest bitcoin exchanges has recently announced that it will launch a daily auction feature, meant to determine the trading price of the digital currency. To put things better into perspective, as it often is quite hard to settle on a price each day, the Gemini exchange now wants to allow users to set the price themselves, and hence find the true price of bitcoin every day.

Gemini Bitcoin

Reportedly, the New York-based exchange will hold a BTC/USD auction every day, at 4 PM Eastern Time, which will last for 10 minutes. During this period of time, users will be free to settle on the exact price which will allow the highest number of both buy and sell orders to be made. This can also provide an end-of-day price which people can use for calculating results and accounting.

In a recent interview, Tyler Winklevoss, the CEO of Gemini has stated that: Daily auctions are common features in mature electronic marketplaces because they provide greater price discovery, liquidity and transparency. In launching our daily auction feature we are trying to bring the same modern trading mechanisms to the Bitcoin market”.

While the auction will initially be available only for BTC/USD, Gemini has stated that the mechanism will later be open to all the other digital currency as well, during the next couple of weeks.

Members of the bitcoin community are excited about this new feature, considering the fact that daily auctions are a common occurrence at most exchanges, such as NASDAQ or the New York Stock Exchange, as it provides a clear way for improving the transparency and discovery process of the prices.

The exchange’s decision represents a great step forward, meant to push bitcoin trading further into the mainstream investing world.

 Tyler Winklevoss continued by stating that: "If you were building a securities exchange today, an auction would be a core feature (…) We've built this trading mechanism to further Gemini's mission of building a next-generation exchange that advances the future of bitcoin trading."

Not only this, but auction trades are also deemed eligible for fee discounts, and can even get access to a 0.15% rebate, when compared to normal, over-the-counter trades which usually cost 1-2% in fees.

Based on everything that has been outlined so far, what do you personally think about Gemini’s latest announcement? Let us know your thoughts in the comment section below.