Bitcoin Forum

Do you think expansion of bitcoin has any effect on the business of exchangers and can damage it!

it could be in the future that fiat bank will take the lead on the exchange, and start exchange bitcoin too, other than offering interest on deposit

at worst case exchange will be more regulated, but they should still work as they work right now

By exchangers you mean foreign currency exchange, Fx?

Banks make money on exchanging money by selling it to you for a little more than they bought it for, that difference is called the spread and it's a relatively easy way to make money. Foreign currency exchange bureaus will DEFINITELY be involved in bitcoin, because it's another easy way for them to make some "coin"!

The two things are that are holding up their involvement in bitcoin today are:

1) Confidence that enough people want to have that type of currency exchange available, it's not like there's one country that deals in bitcoin and that geographic location has been the largest driver for a need for currency exchange, and

2) BTC price stability, the Fx bureaus can't expect to make money off the spread when their entry into the transaction isn't nearly guaranteed to be one that can make them money. We've seen a lot of price stability over the last few months, which is bound to help calm concerns about price stability risk.

P.S. To Amph, I don't think this would replace offering interest on deposits...that's an important piece of what banks offer customers, to end that risks them losing a lot of their business.

Sure it will have affected every single of us. And about the damage I dont think bitcoin can do damage to us except there a new regulations that will

incriminate us. So without new regulation bitcoin will be fine in so many ways



Are you saying that government take in part too about bitcoin because if they take part in it I dont think that wont be a good thing to us because

government will have full control of it and they can shut it down anytime if this become threat to them

Yes I mean money exchangers,
I think bitcoin can ruin their business if it replaces for international trade

It does not make any effect! It helps business groups by making business with other people,countries.

more acceptance at wider parts experiences ease of transfer of funds and more business because it will also interest bitcoin acceptance system. Their will also be more trade if more people accept bitcoin, especially business groups, etc and they will make good money with proper investments.

A little bit off-topic, but forex is an interesting topic

Forex exchange runs on interbank market, which is a secret market that most of the people do not have any idea how it works. Interestingly, from wiki it states: "the interbank market is unregulated and decentralized (like bitcoin). There is no specific location or exchange where these currency transactions take place" so that each country's government have no control over the value of that country's currency, only central banks knows how it works

For any exchange to take place, two accounts of those currencies must be prepared at first place. E.g. the exchange must have both euro account in a european bank and USD account in a US bank, in order to exchange euro and usd. (Kraken does not trade USD, simply because they don't have USD account in a US bank)

But how money really moves between this European bank and that US bank is still complicated

For example, an exchange sell 90 euro and buy 100 USD, so that his US bank is going to add 100 USD to his account, and his european bank will subtract 90 euro from his account. But behind the scene, how does that european bank remove 90 euro from its book and at the same time credit 100 USD into that US bank? It is similar to the settlement process between banks, it means that each bank must already have a large account in another bank, so called currency exchange contract

In case of bitcoin, it is much easier to understand, since bitcoin exists like a commodity, when I sell 1 bitcoin for 230 dollar, I send exchange 1 bitcoin and exchange send me 230 dollar, just like a normal commercial activity and a normal bank transfer