1btc converts 34eth ==> send ===> 34eth convert 1btc ?? Or its value can be reduced
It wouldn't be an exact trade like that because there's always a bid/ask spread in markets, and the wallet service would probably add additional spread to account for volatility and to make profit. So if there were two different wallet services like this and you sent from one to the other, and assuming the most recent price was 1BTC = 34 ETH, it'd be something like:
1. Sender sends 1 BTC.
2. Sender's wallet converts to 33 ETH, losing 1 ETH due to the spread.
3. Recipient's wallet receives 33 ETH (minus some network fee, which I will here ignore).
4. Recipient receives 0.95 BTC, losing ~1 ETH due to the spread.
Those numbers are just examples. I have no idea what the actual "fee" would be; it could be higher or lower.
You would certainly get a better deal by trading on the market directly, but this is more convenient. It's similar to the difference in fees and prices between Coinbase's instant buy/sell and GDAX trading. Also, it's important that this is mainly a
percentage fee rather than a large per-transaction fee; this fee model allows for microtransactions.
(If you send to someone on the
same wallet service, the wallet service should avoid any trades and just do the transfer off-chain for a very low fee.)
This is an interesting idea for a platform indeed. However, to get this business to a profitable place, it would need to have a huge following as it would need a large amount of micro transactions to make money on the conversions. Theymos, why don't you offer a free advertising slot on this forum to anyone who comes up with such a business?
I'd consider giving them an ad slot for a week or two, but I don't
really think that it needs that much of a boost. It's not as if you need a lot of capital to start this service, and there's a lot of potential for profit in the long term, even if it's slow at first.
If an acceptable service is created, I was planning on promoting its use on /r/GirlsGoneBitcoin (which I moderate).
