If Mt.Gox opens litecoin trading, could that suddenly eliminate the $15+ spread?

[chriswilmer]

That would be pretty great if that's what ended up happening. Instead of closing the USD/BTC loop, the spread between LTC/BTC would equalize across Mt. Gox and BTC-e, and then people could withdraw fiat from BTC-e (assuming that's easier than Mt. Gox).

This thought just occurred to me so maybe I am skipping over an important detail....

[spoorancher]

What you are missing is that the spread is not due to the relative value of the Bitcoins, it's due to the relative value of the $.

[joesmoe2012]

What you are missing is that the spread is not due to the relative value of the Bitcoins, it's due to the relative value of the $.

or lack of value of GoxUSD as it cost 20% to withdraw.

[NewLiberty]

What you are missing is that the spread is not due to the relative value of the Bitcoins, it's due to the relative value of the $.

or lack of value of GoxUSD as it cost 20% to withdraw.

That would pump the Gox valuation of litecoin at the expense of its bitcoin valuation.  That would be very bullish for litecoin.

[joesmoe2012]

What you are missing is that the spread is not due to the relative value of the Bitcoins, it's due to the relative value of the $.

or lack of value of GoxUSD as it cost 20% to withdraw.

That would pump the Gox valuation of litecoin at the expense of its bitcoin valuation.  That would be very bullish for litecoin.

The LTC value @ gox would just end up being 20% higher than everywhere else as well. IT's a Fiat IN/Fiat OUT problem.

[NewLiberty]

What you are missing is that the spread is not due to the relative value of the Bitcoins, it's due to the relative value of the $.

or lack of value of GoxUSD as it cost 20% to withdraw.

That would pump the Gox valuation of litecoin at the expense of its bitcoin valuation.  That would be very bullish for litecoin.

The LTC value @ gox would just end up being 20% higher than everywhere else as well. IT's a Fiat IN/Fiat OUT problem.

We agree, but for the "just" characterization.

[dnaleor]

It would indeed open a second market to people who want to get rid of their goxed USD.
So the gox price of BTC would go down a little, until the LTC price has risen to +10 (maybe 20) % above the BTCe LTC price...

[NewLiberty]

It would indeed open a second market to people who want to get rid of their goxed USD.
So the gox price of BTC would go down a little, until the LTC price has risen to +10 (maybe 20) % above the BTCe LTC price...

Well stated.

[Spaceman_Spiff]

It would indeed open a second market to people who want to get rid of their goxed USD.
So the gox price of BTC would go down a little, until the LTC price has risen to +10 (maybe 20) % above the BTCe LTC price...

Depends, are there a decent amount of people (or 1 rich  one :-) ) willing to sell their LTC at gox at <20% premium?

[superduh]

hard to transfer cash between exchanges - easy to transfer bticoins/litecoins - arbitrage opportunity will begin decreasing. end of story.