Quote:
Originally Posted by Gullanian
I read Mt Gox takes 1%, is this true? At a 34414 volume, thats 344 BC profit today, ~ nearly $3,000. For such a simple site that's impressive. There's such a huge gap in the market for a competitor here.
.65%, but on both sides. So it's really 1.30% of any transaction gets eaten up. For 1M volume, it's $80k, so definitely good money, but there are a lot of expenses too.
Quote:
Originally Posted by Freakin
I wonder how much mtgox makes from rounding off fractions of cents
I've wondered this myself how they round it off. I think they just sell you a fraction of a bitcoin, which isn't that big a deal.
Quote:
Originally Posted by john kane
Great many thanks for that.
Would buying bitcoins effectively be an investment in the company/concept itself?
If bitcoins does well, the valuation of bitcoins increases, and vice versa.
I don't really see how this would ever really take off, the whole mining concept seems far to obscure for most people to understand and/or trust.
The volatility in the price will also mean people view it more as a gamble on bitcoins price rising, rather than genuinely using it for transactions.
Though the idea that for international transactions it will be greatly cheaper makes sense, the fees banks charge can be pretty ridiculous when the charge+awful exchange rate are combined, so there is definitely scope to grow there, I just can't see it becoming used for regular transactions like Paypal.
Either way it's very interesting
Thanks again,
john
If Bitcoin does well, then the value of the coins *should* go up.
Most people don't need to understand mining. Mining's a good way to get a bunch of people involved, though.
Volatility should level off at some point.
PayPal is a bigger thing to try to match. It's pointless to convert to USD and BTC just to pay someone, unless there are no other choices. However, if the conversion process becomes easy, then maybe it takes off better. PayPal is such a pain, there's a big opportunity. But then, why not use something like Dwolla? If it happens, it would be more of a merchant revolt. Merchants hate dealing with PayPal, disputes that are always won by scammers, fees, etc... It might work.