BitcoinExchange.com Bitcoin Exchange Rate

[NewLibertyStandard]

I had a look around at BitcoinExchange.com today and I like it a lot. The exchange rate calculation is not yet posted on the website, so I graphed a few data points. I thought it might interest ya'll. There were ฿51549.58 and $800 available when I scraped this data. I would imagine that the points probably shift in various directions, with the graph retaining its basic shape, as the available balances change.

[Xunie]

So, you started your exchange and I could get 600-650 BTC for 1 EUR?
Hmm, I should've bought some then, if only I knew about it!

[NewLibertyStandard]

It's not my exchange service. It's sirius-m's exchange service. No, you can't get ฿600-฿650 for one Euro. The graph starts at ฿6.29, so if you buy ฿6.29 for 0.01 Euro, your exchange rate is ฿629 per Euro. However, the site is live and you can get ฿551.12 for one Euro.

[NewLibertyStandard]

It's asking for a login + password to access the site.  

Oh, I forgot about that. It is live, but perhaps not fully public yet. He mentioned the password in a previous post.

Here's another view of the same graph with rounder numbers along the x-axis. This picture paints a more accurate picture of his exchange rate. You'll notice that the spread (the difference between the red and green line) is quite reasonable until either bitcoins or euros are scarce, at which point it adjusts quickly. The spread gets quite large when you go much higher than about 2 Euro. I'm suddenly liking his exchange rate calculation a lot less. Buyer beware!

[Link2VoIP]

Just did a test trade @ BitcoinExchange.com for Pecunix.

I'll report back on how it goes.

[Link2VoIP]

Pegging the exchange rate to how much energy is required to generate coins is probably a better calculation.

Money is only worth something if there is energy to back it up. It is, after all, just a marker against labour.

Cheers!

The spread gets quite large when you go much higher than about 2 Euro. I'm suddenly liking his exchange rate calculation a lot less. Buyer beware!

[sirius]

Oh, my exchange service got publicity. Maybe I should have posted here myself before I talked about it in the IRC, to let people know what it's about.

Just did a test trade @ BitcoinExchange.com for Pecunix.

I'll report back on how it goes.

Sorry, I wasn't prepared for Pecunix transactions yet (as it reads on the page also). I'll need to get some Pecunix currency first. I'll send you a PM about your transaction.

However, automated SMS purchases of Bitcoin work already. You should get your coins in a few seconds after the payment. Go ahead and try it

I'll tell more about my service later, need to go now.

[NewLibertyStandard]

I didn't mean to catch you off guard; I was just excited to discover how your innovative exchange service works. I don't really have a problem with your exchange rate, but I'd feel bad for anyone who might make a purchase which they wouldn't have otherwise made if they had been more familiar with how your exchange works. Perhaps you could also dynamically display the spread percentage. I think it's good that your rate adapts to supply and demand, but I think it would be better if the spread percentage was high with low volume and low with higher volume. Of course that may be difficult to do when the exchange rate changes dynamically. Perhaps i just need to refresh my math skills. If I'm missing something fundamental about how your exchange rate works, please fill me in when you've got some spare time.

[sirius]

Here's a pic that hopefully helps to explain the calculation of my exchange rate. The €-value of a Bitcoin transaction is the area under the exchange rate curve between points P1 and P2 on the x-axis, where P1 is my BTC reserves before the transaction, and P2 after the transaction. When you sell 10000 BTC and buy them back before someone else does, the spread (my profit margin) is always about 2%.

[sirius]

I'm sorry Link2Voip, but I think I'll be dropping Pecunix off the list. It's way safer, easier and less expensive to store my assets in the bank. I'll send you another PM so we can sort out your transaction.

[mizerydearia]

I'll tell more about my service later, need to go now.

I'd like to learn more about it.

[PulsedMedia]

Oh cool, BitcoinExchange is operated by Finnish company as well! /offtopic

When might BitcoinExchange be back in operation?