How Does the Lack of a Single “World Price” Affect the Crypto Basis?

The lack of a single "world price" means there is no universally accepted benchmark for the cryptocurrency's spot value. Traditional commodities often have a recognized global benchmark.

For crypto, the price is an amalgamation of numerous exchange quotes. This lack of a single, authoritative price point introduces ambiguity and volatility into the index calculation, making the basis more susceptible to fluctuation and harder to predict for hedging purposes.