Print Page - Slippage Calculations Function Like Transfer Fee

Earlier today I thought about slippage and how it functions as a sort of transfer fee. So I decided to quickly run some numbers. Here they are:

Code:

Slippage vs. Market Cap		08/10/12		Market Cap	109,470,000				
					
Amt.($)	Slippage	Slippage Fee		% of Market Cap	Slippage Fee
100	0		0.00%			0.00%		0.00%
1000	0		0.00%			0.00%		0.00%
10000	26.22		0.26%			0.01%		0.26%
100000	1373.675	1.37%			0.09%		1.37%
1000000	138230		13.82%			0.91%		13.82%

So let's say you want to transfer $10M and pay less than 1% fee. What kind of market cap would there have to be?

The $10M would have to be less than 0.1% of the market cap so the market cap would need to be roughly 1000x the transfer amount or $10B. With only 10M coins in circulation, each coin would therefore need to be worth $1000.

So you can easily create a calculator. For any given price per Bitcoin, certain kinds of transfers become either possible or not-possible. We're not to where the most expensive homes could be purchased in "cash" with Bitcoin but we're there certainly for some homes in the US.

Thoughts?

Bitcoin Forum

Economy => Economics => Topic started by: weex on August 11, 2012, 12:28:33 AM