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:
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?
