Live test; BTC Transaction versus USD Wire Transfer

[BenRickert]

     Just for the fun of it, I decided to run a real life, real money test to compare the efficacies of a BTC Wallet based transaction versus my old world, USD Bank based wire transfer.

     Within a matter of days of each other, I purchased two pieces of mining hardware from a reputable manufacturer in China with a solid Customer Service record. On June 19th, I bought one unit and used a USD Wire Transfer to make payment to the overseas Co. Then on June 21st, I purchased another unit, same machine, but used a BTC transfer from my wallet. After 25 days the final results are in.

USD Wire Transfer;
     The cash was immediately deducted from my US bank based account on June 19th. It then went into "banking limbo" for 21 calendar days. On July the 10th, the Chinese intermediary bank acknowledged receipt of the funds I sent on June 19th. On July 15th the Chinese Co. acknowledged the receipt of the funds to their Co. account. On July 17th, my account and order were updated as " Paid pending shipment".  After much nervousness, emailing, stopping in the bank and updating "transfer info" with the recipient company, almost 1 MONTH later the transaction was completed.

BTC Wallet Transfer;
     Upon placing my order online, I received the BTC address to transfer my payment to. I entered it into my mobile phone, put in the exact amount of the purchase and hit "send" from my BTC wallet on my mobile app. ( of course I only keep enough on my mobile app to complete immediate transaction ). Literally within 10 minutes, my payment was received by the recipient Co., Confirmed as received and my pending order updated to " Paid pending shipment". 10 MINUTES!


     While there is still work to do, I think it is highly unlikely that such an archaic,clumsy and inefficient banking system can survive the ensuing block chain onslaught.

Death to traditional banking!

Long Live The Block Chain!!!

[davidmccoy]

This is one of the BTC features that everybody likes i-e prompt payment and acceptance. Sooner or later it can become one of the "must have" payment options on all retail services. It is already getting worldwide acceptance.

[Kemarit]

This is one of the BTC features that everybody likes i-e prompt payment and acceptance. Sooner or later it can become one of the "must have" payment options on all retail services. It is already getting worldwide acceptance.

I think this is definitely one useful area of bitcoin. Micro-payment or online payment. I think its a long way to go before we can see that it will be the new trend and will overtook the usual fiat like Paypal, Western Union or even Wire Transfer. But again, the issue that almost all of us are talking are the slow confirmation time and the high transaction fee. I really hope that we can resolved this roadblock once and for all so that we can see that more people will used bitcoin/blockchain technology against the traditional money transfer that we have right now. At least we have now a good, I mean better option to used. Thanks for sharing us your experiment dude.

[hatshepsut93]

Bitcoin really shines when it comes to international transactions, as it doesn't matter where you send coins, unlike with fiat systems who usually charge pretty big fees for those types of transactions. And even though the fees of Bitcoin can be pretty high, it's still cheaper than fiat systems when you send bigger sums. I think people who try to spread the word about Bitcoin should focus on this strong point of Bitcoin by promoting it as a currency that destroys any borders between people.

[mindrust]

Every USD transaction you make between banks is recorded and monitored by the FEDs. If it looks suspicious (the gov can find many things suspicious), you get questioned and your money is seized unless you prove that you are clean.

If you make a bitcoin transaction however; your transactions are recorded  and can be monitored also but you won't get questioned (at least till they figure out who you are) and your money will make its way to the other side no matter what happens. No bullshit.

[BenRickert]

Every USD transaction you make between banks is recorded and monitored by the FEDs. If it looks suspicious (the gov can find many things suspicious), you get questioned and your money is seized unless you prove that you are clean.

If you make a bitcoin transaction however; your transactions are recorded  and can be monitored also but you won't get questioned (at least till they figure out who you are) and your money will make its way to the other side no matter what happens. No bullshit.

This is an excellent observation. In addition, don't you just wonder who is getting the "float" on that "Limbo Money"? We all know that traditional banks and fiat systems basically, temporarily steal our money and hold it hostage for inordinate lengths of time. Even though interest rates are negligible, if they do it in serious volumes, ( and they do ) it's just risk free, free income off of our dollars. It's legal theft. There is so much abuse and corruption in this system that people just basically accept it. My money was held captive for almost an entire month and there was not a thing I could do about it. It's time for this to stop. Most of us have to work for a living. Not banks and government. They just steal it from us!!

[Minecache]

     Just for the fun of it, I decided to run a real life, real money test to compare the efficacies of a BTC Wallet based transaction versus my old world, USD Bank based wire transfer.

     Within a matter of days of each other, I purchased two pieces of mining hardware from a reputable manufacturer in China with a solid Customer Service record. On June 19th, I bought one unit and used a USD Wire Transfer to make payment to the overseas Co. Then on June 21st, I purchased another unit, same machine, but used a BTC transfer from my wallet. After 25 days the final results are in.

USD Wire Transfer;
     The cash was immediately deducted from my US bank based account on June 19th. It then went into "banking limbo" for 21 calendar days. On July the 10th, the Chinese intermediary bank acknowledged receipt of the funds I sent on June 19th. On July 15th the Chinese Co. acknowledged the receipt of the funds to their Co. account. On July 17th, my account and order were updated as " Paid pending shipment".  After much nervousness, emailing, stopping in the bank and updating "transfer info" with the recipient company, almost 1 MONTH later the transaction was completed.

BTC Wallet Transfer;
     Upon placing my order online, I received the BTC address to transfer my payment to. I entered it into my mobile phone, put in the exact amount of the purchase and hit "send" from my BTC wallet on my mobile app. ( of course I only keep enough on my mobile app to complete immediate transaction ). Literally within 10 minutes, my payment was received by the recipient Co., Confirmed as received and my pending order updated to " Paid pending shipment". 10 MINUTES!


     While there is still work to do, I think it is highly unlikely that such an archaic,clumsy and inefficient banking system can survive the ensuing block chain onslaught.

Death to traditional banking!

Long Live The Block Chain!!!

Great experiment and that's for sharing.

[dothebeats]

My Uncle is used to do wire transfers to my mother here in the Philippines and doesn't care about the wire transfer fee (usually about $20-$40 as he always say). He trusts the wire transfer so much because it is 'backed' by the government and the fee, which he mentioned, is "just a small chump change to ensure that the money will be received." As a practical dude, I realized that $25-$40 would be a lot if accumulated since he regularly sends my mother some money to help with the expenses. I could try to use this as an example to further enlighten him about bitcoin replacing traditional bank transfers. He doesn't believe in computers so much, that's why he despise of WU and other international remittance services. But seeing that bitcoin is being talked about in Canada (he's in Saskatchewan) right now, this might be a great move to introduce good 'ol bitcoin to save him some fees which he can use to buy something good for hinself lol.

Thanks for sharing. Your experiment is just one of the many reasons why bitcoin is better than fiat and traditional banking.

[AGD]

Same experience here for years. Bitcoin beats banks by far esp. when it comes to international money transfer.

[Rising Suns]

     Just for the fun of it, I decided to run a real life, real money test to compare the efficacies of a BTC Wallet based transaction versus my old world, USD Bank based wire transfer.

     Within a matter of days of each other, I purchased two pieces of mining hardware from a reputable manufacturer in China with a solid Customer Service record. On June 19th, I bought one unit and used a USD Wire Transfer to make payment to the overseas Co. Then on June 21st, I purchased another unit, same machine, but used a BTC transfer from my wallet. After 25 days the final results are in.

USD Wire Transfer;
     The cash was immediately deducted from my US bank based account on June 19th. It then went into "banking limbo" for 21 calendar days. On July the 10th, the Chinese intermediary bank acknowledged receipt of the funds I sent on June 19th. On July 15th the Chinese Co. acknowledged the receipt of the funds to their Co. account. On July 17th, my account and order were updated as " Paid pending shipment".  After much nervousness, emailing, stopping in the bank and updating "transfer info" with the recipient company, almost 1 MONTH later the transaction was completed.

BTC Wallet Transfer;
     Upon placing my order online, I received the BTC address to transfer my payment to. I entered it into my mobile phone, put in the exact amount of the purchase and hit "send" from my BTC wallet on my mobile app. ( of course I only keep enough on my mobile app to complete immediate transaction ). Literally within 10 minutes, my payment was received by the recipient Co., Confirmed as received and my pending order updated to " Paid pending shipment". 10 MINUTES!


     While there is still work to do, I think it is highly unlikely that such an archaic,clumsy and inefficient banking system can survive the ensuing block chain onslaught.

Death to traditional banking!

Long Live The Block Chain!!!

For those who have sent USD wire transfers, is it "normal" for it to take 21 calendar days between US (I presume) and China?

[megynacuna]

Same experience here for years. Bitcoin beats banks by far esp. when it comes to international money transfer.

Yes there's actually no competition when it comes to who's best but the powers that be will always side with the system they can control and make profits from and so they'd opt for USD wire transfer ahead of Bitcoin in international money transfers.

[NorrisK]

Nice test, but I think it is not really fair.

There are faster ways to make payments across the globe.

If you would've used a credit card (mastercard, visa), you probably would've had your payment go through instantly.

[phil65]

Oversea transfers is one of the killer apps imo.

[Siren]

My Uncle is used to do wire transfers to my mother here in the Philippines and doesn't care about the wire transfer fee (usually about $20-$40 as he always say). He trusts the wire transfer so much because it is 'backed' by the government and the fee, which he mentioned, is "just a small chump change to ensure that the money will be received." As a practical dude, I realized that $25-$40 would be a lot if accumulated since he regularly sends my mother some money to help with the expenses. I could try to use this as an example to further enlighten him about bitcoin replacing traditional bank transfers. He doesn't believe in computers so much, that's why he despise of WU and other international remittance services. But seeing that bitcoin is being talked about in Canada (he's in Saskatchewan) right now, this might be a great move to introduce good 'ol bitcoin to save him some fees which he can use to buy something good for hinself lol.

Thanks for sharing. Your experiment is just one of the many reasons why bitcoin is better than fiat and traditional banking.

Yes. Kabayan. I also have relatives sending through Western Union. But recently, I have introduced them to the world of bitcoin. They haven't send one yet. But I will very well convince them to used it as alternative and my main pitch will be because its much faster than Western Union. Well the only problem I see is that they are not technically inclined (too old) but will do my best to explain to them that bitcoin has a lot of advantages specially in sending money across borders. Hope I got a positive result.

[OROBTC]

     Just for the fun of it, I decided to run a real life, real money test to compare the efficacies of a BTC Wallet based transaction versus my old world, USD Bank based wire transfer.

     Within a matter of days of each other, I purchased two pieces of mining hardware from a reputable manufacturer in China with a solid Customer Service record. On June 19th, I bought one unit and used a USD Wire Transfer to make payment to the overseas Co. Then on June 21st, I purchased another unit, same machine, but used a BTC transfer from my wallet. After 25 days the final results are in.

USD Wire Transfer;
     The cash was immediately deducted from my US bank based account on June 19th. It then went into "banking limbo" for 21 calendar days. On July the 10th, the Chinese intermediary bank acknowledged receipt of the funds I sent on June 19th. On July 15th the Chinese Co. acknowledged the receipt of the funds to their Co. account. On July 17th, my account and order were updated as " Paid pending shipment".  After much nervousness, emailing, stopping in the bank and updating "transfer info" with the recipient company, almost 1 MONTH later the transaction was completed.

BTC Wallet Transfer;
     Upon placing my order online, I received the BTC address to transfer my payment to. I entered it into my mobile phone, put in the exact amount of the purchase and hit "send" from my BTC wallet on my mobile app. ( of course I only keep enough on my mobile app to complete immediate transaction ). Literally within 10 minutes, my payment was received by the recipient Co., Confirmed as received and my pending order updated to " Paid pending shipment". 10 MINUTES!


     While there is still work to do, I think it is highly unlikely that such an archaic,clumsy and inefficient banking system can survive the ensuing block chain onslaught.

Death to traditional banking!

Long Live The Block Chain!!!

Great experiment and that's for sharing.

Yes, great comparative experiment.

But our company down in Peru sends wire transfers to China a few times a year (for auto parts).  The money has ALWAYS arrived withing two - three days (just a day or so longer than coming to the USA from Peru).  Our bank charges vary (depending on the amount), but come in at roughly 1% of the W/T value.

NO, our supplier will not take Bitcoin yet, none of them (the others are in Korea and Japan) do either.

[BenRickert]

Nice test, but I think it is not really fair.

There are faster ways to make payments across the globe.

If you would've used a credit card (mastercard, visa), you probably would've had your payment go through instantly.

The Vendor does not offer those options for remittance. Those options expose them to further fees from the CC company and also exchange risk in currency conversion. Agreed, a better option, but still costly and cumbersome for all parties except the intermediary.

[theinca]

     Just for the fun of it, I decided to run a real life, real money test to compare the efficacies of a BTC Wallet based transaction versus my old world, USD Bank based wire transfer.

     Within a matter of days of each other, I purchased two pieces of mining hardware from a reputable manufacturer in China with a solid Customer Service record. On June 19th, I bought one unit and used a USD Wire Transfer to make payment to the overseas Co. Then on June 21st, I purchased another unit, same machine, but used a BTC transfer from my wallet. After 25 days the final results are in.

USD Wire Transfer;
     The cash was immediately deducted from my US bank based account on June 19th. It then went into "banking limbo" for 21 calendar days. On July the 10th, the Chinese intermediary bank acknowledged receipt of the funds I sent on June 19th. On July 15th the Chinese Co. acknowledged the receipt of the funds to their Co. account. On July 17th, my account and order were updated as " Paid pending shipment".  After much nervousness, emailing, stopping in the bank and updating "transfer info" with the recipient company, almost 1 MONTH later the transaction was completed.

BTC Wallet Transfer;
     Upon placing my order online, I received the BTC address to transfer my payment to. I entered it into my mobile phone, put in the exact amount of the purchase and hit "send" from my BTC wallet on my mobile app. ( of course I only keep enough on my mobile app to complete immediate transaction ). Literally within 10 minutes, my payment was received by the recipient Co., Confirmed as received and my pending order updated to " Paid pending shipment". 10 MINUTES!


     While there is still work to do, I think it is highly unlikely that such an archaic,clumsy and inefficient banking system can survive the ensuing block chain onslaught.

Death to traditional banking!

Long Live The Block Chain!!!

For those who have sent USD wire transfers, is it "normal" for it to take 21 calendar days between US (I presume) and China?

Probably depends on the banks involved in the transactions. I sent a wire to Chinese bank for Bitmain product using BOA and I received confirmation that the wire went through by the end of business day and Bitmain confirmed in the morning that they received the wire.

At work we get a lot of wire transfers for our products and depending on the Bank and what country it is located in the wire can take 3 to 4 days.  

But I do agree with the OP that speed and no wire transfer fees is nice especially when you send money oversees. When I got married overseas the wire transfer fees added up sending multiple wires to pay different vendors.  

[OROBTC]

...

Our experience with wire transfers is that they are pretty quick vs. in the past.

Peru -> USA: the money arrives in about 12 - 30 hours, depending.  Total costs for small transfers: some $100 (our- and incoming fees)

Peru -> Korea and Japan: the money arrives in a day or two after sending.  Total costs probably similar as above, maybe a hair more.

Peru -> China: I don't really know, but our Chinese suppliers never complain about when they receive the money after the T/T.

For international transactions among real companies the bank wire transfers work "well enough".  But, when I receive a payment (say for $3000), the total costs are some $60 or more.

[BenRickert]

No boubt adoubt it. But....it won't be Ripple. Ripple is dead. Banks are only using the Ripple team to rip off their software and protocol. No relevant bank is going to use Ripple for their payment and transfer system. Too much Red Tape, Bureaucracy and risk. Banks don't do risk. They'll just make their own "Ripple".

[bitart]

No boubt adoubt it. But....it won't be Ripple. Ripple is dead. Banks are only using the Ripple team to rip off their software and protocol. No relevant bank is going to use Ripple for their payment and transfer system. Too much Red Tape, Bureaucracy and risk. Banks don't do risk. They'll just make their own "Ripple".

Banks won't use a system unless it's proven that it's secure and have done a proper testing for a long time for every feature it offers. And of course, banks won't make it public if they are working on a system, or at least, they will announce that they started to develop something but will never announce in what phase they are with the development/testing. The customers of the banks are not interested in the background systems, so it won't gain them new customers if they make it public if they are working on a shiny and new system, customers only interested in costs and reputation (and customer satisfaction, of course)