Creating an exchange

[high110]

From my limited time testing out exchanges - aren't we really just turning BTC from a free transaction system into a payment transaction system?  Ripple tries to solve this problem, but in a terrible way - they're using the current banking model of creating money from Debt.  I'm not sure if I agree with this approach as it has lead most countries into their current financial situation.

Does anyone know how to create an exchange - that will allow almost the free movement of BTC and currency without huge transaction fees?  Does it really cost that much to maintain an exchange?  I'm sure MT.Gox is making a butt load of money - why not reduce all the fees to gain mass market penetration.

If I wanted to create such an exchange, what's the starting point? 

[ldrgn]

I'm not sure if I agree with this approach as it has lead most countries into their current financial situation.

Wealthier and more efficient than they've ever been before?

Does it really cost that much to maintain an exchange?

Yes

I'm sure MT.Gox is making a butt load of money - why not reduce all the fees to gain mass market penetration.

Because people run businesses to make a profit.

If I wanted to create such an exchange, what's the starting point? 

Learn something about economics and business?

[doom309]

ideally, if bitcoin is all about smashing traditional business models and breaking new ground, then it should aim to eliminate the "broker" function altogether, so an ideal exchange would have some sort of direct market access (dma) option for the trader/investor, something which could enable them to place trades on the exchange direct from their wallets, and back again, long/short, buy/sell, etc, with bids and asks being matched electronically, but it would need to be super fast - so i dont know how the miner verification aspect of bitcoin transactions could accommodate this, im not a tech person

[usscfounder]

How about a P2P exchange that cannot be shut down or seized? Take a look at what I am designing here (its just a design. I will leave it up to you to code):

https://bitcointalk.org/index.php?topic=209269.0

[JohnsonX]

How about a P2P exchange that cannot be shut down or seized? Take a look at what I am designing here (its just a design. I will leave it up to you to code):

https://bitcointalk.org/index.php?topic=209269.0

I like the idea

[Tywill]

How about a P2P exchange that cannot be shut down or seized? Take a look at what I am designing here (its just a design. I will leave it up to you to code):

https://bitcointalk.org/index.php?topic=209269.0

Good concept

[monsterer]

These P2P exchange ideas are all well and good in theory, but the reality is they can never be fast enough to completely replace a centralised exchange.

Moving money between bitcoin addresses is a slow process if you need to be sure the money arrived; I waited about 3 hours to get 3 confirmations from a small transaction - this is not an acceptable amount of time to wait when performing a trade IMO.

[acoindr]

These P2P exchange ideas are all well and good in theory, but the reality is they can never be fast enough to completely replace a centralised exchange.

Moving money between bitcoin addresses is a slow process if you need to be sure the money arrived; I waited about 3 hours to get 3 confirmations from a small transaction - this is not an acceptable amount of time to wait when performing a trade IMO.

Try Litecoin.

[high110]

What level of programing skills do you need to create an exchange?  Is there open source code out there to get started?

[franky1]

What level of programing skills do you need to create an exchange?  Is there open source code out there to get started?

you don't seem to know much about running a business..

you don't seem to know much about programming...

you don't seem to know much about regulations...

you don't seem to know much about costs..

do you really think that you are the right guy to be running a exchange? honestly??

[deadweasel]

What level of programing skills do you need to create an exchange?  Is there open source code out there to get started?

you don't seem to know much about running a business..

you don't seem to know much about programming...

you don't seem to know much about regulations...

you don't seem to know much about costs..

do you really think that you are the right guy to be running a exchange? honestly??

+1

[high110]

You gotta try if you can =)

[Elwar]

Too much focus is going on moving money back and forth between new currency and old currency.

More focus needed on using the new currency.

[high110]

Elwar - I agree with you.  I think after what happen to Liberty Reserve, it really proves even the biggest and most successful exchanges can go under.  Maybe i'll try and focus on creating a service that sells/buys real life products for bitcoins.

[laissez]

Too much focus is going on moving money back and forth between new currency and old currency.

More focus needed on using the new currency.

Like a craigslist for people who want buy/sell their stuff or their services in bitcoin.