In the stock market, certain stocks are combined within an index. The index represents the average price of the shares included. The Bitcoin Price Index, which is abbreviated BPI, works in a similar way.

How does an index work?
You may already be familiar with various indices on the stock market, but what they all have in common is that they are based on various individual stocks. In most cases, the index contains between 20 and 100 individual stocks. With a value, usually its score, the index reflects the average prices of the basics represented.

What is the BPI?
The abbreviation stands for Bitcoin Price Index, which works in the same way as a stock index, but only one single security is included in the index, namely the crypto-currency Bitcoin. The purpose of the BPI is to show the average price of the digital currency Bitcoin. For this purpose, the index uses the prices on various cryptocoin exchanges. The Bitcoin prices on the various Cyptocoin exchanges may often differ, so the BPI reflects the actual average price.