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Title: del Post by: myself on August 28, 2012, 08:19:28 PM del
Title: Re: at a certain point you cant buy cheap coins Post by: DeathAndTaxes on August 28, 2012, 08:31:40 PM what?
Title: Re: at a certain point you cant buy cheap coins Post by: humanitee on August 28, 2012, 08:37:08 PM Title: Re: at a certain point you cant buy cheap coins Post by: thezerg on August 28, 2012, 08:37:29 PM I think he's saying that the cost of a BTC * number of BTC has to be higher than the operating costs of the exchange and that as volumes increase this operating cost also increases.
Title: Re: at a certain point you cant buy cheap coins Post by: humanitee on August 28, 2012, 08:42:47 PM Isn't the whole process mostly automated?
Title: Re: at a certain point you cant buy cheap coins Post by: calian on August 28, 2012, 08:47:44 PM Maybe he's saying MTGOX keeps their BTC fees in BTC and don't sell them. Therefore a portion of all the exchange that passes through there is taken off the market.
Title: Re: at a certain point you cant buy cheap coins Post by: kjj on August 28, 2012, 10:39:59 PM He's saying that mtgox requires $64,000 per month to exist. Their average fee is 0.5%. Divide one by the other and you get...
If their monthly volume traded drops below about $13 million dollars, they'll be in the red and eventually would have to shut down, making it hard to trade coins. (It is more complicated than that, of course, because some part of their commissions are in BTC, but they don't (can't really) sell those coins, so their fiat earnings have to pay for everything at the moment.) Title: Re: at a certain point you cant buy cheap coins Post by: FreeMoney on August 28, 2012, 10:46:01 PM He's saying that mtgox requires $64,000 per month to exist. Their average fee is 0.5%. Divide one by the other and you get... If their monthly volume traded drops below about $13 million dollars, they'll be in the red and eventually would have to cut costs. Fixed that. But really, one day MtGox will go out of business and we'll all be fine. It's funny really, people aren't going to like "OMG coins are so cheap but no where to buy them because I'm only willing to pay .5% fee and no exchange can exist on that because of the costs of one exchange at one time in the past." Title: Re: at a certain point you cant buy cheap coins Post by: Yuhfhrh on August 28, 2012, 10:47:19 PM He's saying that mtgox requires $64,000 per month to exist. Their average fee is 0.5%. Divide one by the other and you get... If their monthly volume traded drops below about $13 million dollars, they'll be in the red and eventually would have to shut down, making it hard to trade coins. (It is more complicated than that, of course, because some part of their commissions are in BTC, but they don't (can't really) sell those coins, so their fiat earnings have to pay for everything at the moment.) Why can't they sell their btc? Title: Re: at a certain point you cant buy cheap coins Post by: FreeMoney on August 28, 2012, 10:53:57 PM He's saying that mtgox requires $64,000 per month to exist. Their average fee is 0.5%. Divide one by the other and you get... If their monthly volume traded drops below about $13 million dollars, they'll be in the red and eventually would have to shut down, making it hard to trade coins. (It is more complicated than that, of course, because some part of their commissions are in BTC, but they don't (can't really) sell those coins, so their fiat earnings have to pay for everything at the moment.) Why can't they sell their btc? Well, if they tried to sell them at their own market that would just generate more fees and they'd have the same problem. And remember, premise of OP is 1 market exists. Title: Re: at a certain point you cant buy cheap coins Post by: istar on August 28, 2012, 10:56:49 PM How about if they raise their fees to 1%?
Title: Re: at a certain point you cant buy cheap coins Post by: molecular on August 28, 2012, 11:28:20 PM He's saying that mtgox requires $64,000 per month to exist. Their average fee is 0.5%. Divide one by the other and you get... If their monthly volume traded drops below about $13 million dollars, they'll be in the red and eventually would have to shut down, making it hard to trade coins. (It is more complicated than that, of course, because some part of their commissions are in BTC, but they don't (can't really) sell those coins, so their fiat earnings have to pay for everything at the moment.) Why can't they sell their btc? Well, if they tried to sell them at their own market that would just generate more fees and they'd have the same problem. except it'd be 0.005 times as small (200 times smaller) Title: Re: at a certain point you cant buy cheap coins Post by: Yuhfhrh on August 28, 2012, 11:47:24 PM He's saying that mtgox requires $64,000 per month to exist. Their average fee is 0.5%. Divide one by the other and you get... If their monthly volume traded drops below about $13 million dollars, they'll be in the red and eventually would have to shut down, making it hard to trade coins. (It is more complicated than that, of course, because some part of their commissions are in BTC, but they don't (can't really) sell those coins, so their fiat earnings have to pay for everything at the moment.) Why can't they sell their btc? Well, if they tried to sell them at their own market that would just generate more fees and they'd have the same problem. And remember, premise of OP is 1 market exists. (Example) Selling 100 BTC for $1,000 and then getting 0.5BTC back is not a problem... Title: Re: at a certain point you cant buy cheap coins Post by: kjj on August 29, 2012, 06:10:24 AM He's saying that mtgox requires $64,000 per month to exist. Their average fee is 0.5%. Divide one by the other and you get... If their monthly volume traded drops below about $13 million dollars, they'll be in the red and eventually would have to shut down, making it hard to trade coins. (It is more complicated than that, of course, because some part of their commissions are in BTC, but they don't (can't really) sell those coins, so their fiat earnings have to pay for everything at the moment.) Why can't they sell their btc? Because they are in the BTC trading business, and they could front-run every buy, sell, and hold order that everyone ever made. Title: Re: at a certain point you cant buy cheap coins Post by: Bitcoin Oz on August 29, 2012, 06:16:43 AM He's saying that mtgox requires $64,000 per month to exist. Their average fee is 0.5%. Divide one by the other and you get... If their monthly volume traded drops below about $13 million dollars, they'll be in the red and eventually would have to shut down, making it hard to trade coins. (It is more complicated than that, of course, because some part of their commissions are in BTC, but they don't (can't really) sell those coins, so their fiat earnings have to pay for everything at the moment.) Why can't they sell their btc? Because they are in the BTC trading business, and they could front-run every buy, sell, and hold order that everyone ever made. If they are ethical they would sell them through a third party they trust at arms length. Title: Re: at a certain point you cant buy cheap coins Post by: chmod755 on August 29, 2012, 06:33:53 AM If they are ethical they would sell them through a third party they trust at arms length. They should collaborate with other exchanges: 1.ethical reasons 2.they'd have some coins even if something goes wrong with their own exchange + backups / cold storage 3.trading so many coins on their own exchange also makes them a very big target for hackers Title: Re: at a certain point you cant buy cheap coins Post by: FreeMoney on August 29, 2012, 06:59:49 AM He's saying that mtgox requires $64,000 per month to exist. Their average fee is 0.5%. Divide one by the other and you get... If their monthly volume traded drops below about $13 million dollars, they'll be in the red and eventually would have to shut down, making it hard to trade coins. (It is more complicated than that, of course, because some part of their commissions are in BTC, but they don't (can't really) sell those coins, so their fiat earnings have to pay for everything at the moment.) Why can't they sell their btc? Because they are in the BTC trading business, and they could front-run every buy, sell, and hold order that everyone ever made. If they do that traders will eventually realize that it is better to trade off market or at other markets. But the fact they could make money doing that doesn't mean they have trouble selling coins, kind of the opposite. |