Exchange volume is more decentralized now then ever ...

[DeathAndTaxes]

MtGox share is under 60%.  I have no ill feelings towards MtGox and don't want to see them "go away" (as others do).  However having exchange volume more decentralized is a good thing for everyone (except maybe Mtgox).  I don't believe decentralized exchanges are viable (at least nothing proposed yet).  For those who want to operate outside the exchange space, OTC is a great concept but major companies aren't going to use OTC.  Imagine tomorrow Newegg accepted BTC and needed to convert tens of thousands of BTC a day to pay bills, suppliers, etc.  They are going to use an exchange and if exchanges can't handle that volume they simply won't accept BTC. MtGox at one point topped 85%+ of total exchange volume and now is below 60%.  Hopefully that will fall even further to say 30% to 40%, MtGox would still be majorly important but they wouldn't be "the" exchange.

http://www.bitcoinity.org/markets/list

Code:

Total volume in prior 24 hours: 36,705 BTC 

Name        BTC    Share   Currencies
mtgox     21,397   58.30%  AUD CAD CHF DKK EUR GBP HKD JPY NZD PLN RUB SEK SGD THB USD
bitstamp   5,879   16.02%  USD
btce       4,625   12.60%  USD RUR EUR
btcchina   2,729    7.44%  CNY
campbx       882    2.41%  USD
cavirtex     812    2.21%  CAD
bitcurex     377    1.03%  PLN EUR

We are going to start combining quote feeds from all exchanges and using the "gobal exchange rate" in our pricing models.  

[chriswilmer]

That's great. What was the timespan you used?

[IIOII]

The tendency is right but the numbers are a bit misleading.

The exchanges listed do not represent 100% of the exchange market. At least you should add bitcoin.de, which has a higher turnover than campbx.


Good to see Mt.Gox going down.

[ThatDGuy]

That's great. What was the timespan you used?

Also curious about the timespan.  Volume has been really low over the past week or so, although after the Dwolla news it's not surprising and good to see decentralization.

[BTCLuke]

Why doesn't Coinbase make that list? I thought they do a lot of conversion?

[evoorhees]

Why doesn't Coinbase make that list? I thought they do a lot of conversion?

Their conversion is done via Gox, unless I'm mistaken.

Gox's actual percentage is far lower than people think. There are also dark pools and the OTC market with large trades that are done, never shown on the exchange's volume. Plus, many tiny person to person exchanges.

Bitcoin is actually so decentralized that you don't actually realize (nor can you even know) all the places in which it's exchanged.

[cypherdoc]

Good to see Mt.Gox going down.

the real question is are the others going up?

[wachtwoord]

This is a very good development for everyone involved (long term also for MtGox).

Minging pools are also increasingly decentralized http://blockchain.info/pools?timespan=4days

Just that ASCIMINER controls 9% as a single entity is rather high but it will fix itself in time. In the meantime they are very transparent (they could easily hide their has rate) and deserve the cash in on the business risks they took

[DeathAndTaxes]

The OP was 24 hours.  Sorry it wasn't clear.  I just copied the data from bitcointy.  Also yes bitocinty feed isn't complete there are always some exchanges not included.

You can see the reduction over time.

Code:

Timespan   Total volume    MtGox Share
 6 months  19,302,999 BTC  77.72%
  30 days   4,139,154 BTC  75.87%
   7 days     383,426 BTC  71.17%
 24 hours      37,135 BTC  56.87%

While volume is down across most exchanges, the reduction to MtGox has been outsized.  A comparison of Bitstamp to MtGox.

Bitstamp
318,010 BTC in prior 30 days = 10,600 BTC average per day
6,718 BTC in prior 24 hrs
37% reduction in volume over prior 24 hrs compared to 30 day average

MtGox
3,140,537 BTC in prior 30 days = 104,684 BTC average per day
21,120 BTC in prior 24 hrs
80% reduction in volume over prior 24 hrs compared to 30 day average

[ThatDGuy]

The OP was 24 hours.  Sorry it wasn't clear.  I just copied the data from bitcointy.  Also yes bitocinty feed isn't complete there are always some exchanges not included.

You can see the reduction over time.

Code:

Timespan   Total volume    MtGox Share
 6 months  19,302,999 BTC  77.72%
  30 days   4,139,154 BTC  75.87%
   7 days     383,426 BTC  71.17%
 24 hours      37,135 BTC  56.87%

While volume is down across most exchanges, the reduction to MtGox has been outsized.  A comparison of Bitstamp to MtGox.

Bitstamp
318,010 BTC in prior 30 days = 10,600 BTC average per day
6,718 BTC in prior 24 hrs
37% reduction in volume over prior 24 hrs compared to 30 day average

MtGox
3,140,537 BTC in prior 30 days = 104,684 BTC average per day
21,120 BTC in prior 24 hrs
80% reduction in volume over prior 24 hrs compared to 30 day average

Interesting...  It does seem like looking at one 24 hour period isn't sufficient data, though.  A full week or more at 56% would be more telling, especially if it was a week with higher volume overall.

[QuantPlus]

The OP was 24 hours.  Sorry it wasn't clear.  I just copied the data from bitcointy.  Also yes bitocinty feed isn't complete there are always some exchanges not included.

You can see the reduction over time.

Code:

Timespan   Total volume    MtGox Share
 6 months  19,302,999 BTC  77.72%
  30 days   4,139,154 BTC  75.87%
   7 days     383,426 BTC  71.17%
 24 hours      37,135 BTC  56.87%

While volume is down across most exchanges, the reduction to MtGox has been outsized.  A comparison of Bitstamp to MtGox.

Bitstamp
318,010 BTC in prior 30 days = 10,600 BTC average per day
6,718 BTC in prior 24 hrs
37% reduction in volume over prior 24 hrs compared to 30 day average

MtGox
3,140,537 BTC in prior 30 days = 104,684 BTC average per day
21,120 BTC in prior 24 hrs
80% reduction in volume over prior 24 hrs compared to 30 day average

Interesting...  It does seem like looking at one 24 hour period isn't sufficient data, though.  A full week or more at 56% would be more telling, especially if it was a week with higher volume overall.

Cherry picking one 24 hour period would get you an F- in Stats 101.

At best, one can maybe argue...
Gox Public Exchange share down about 5% to low 70s.

We need 1000s of small exchanges...
We need a generic Open Source exchange web site you can put up in 24 hours...
That can share all or part of Order Books with peers.

We don't need BIG exchanges run out of Silicon Valley...
We need lots of small to medium ones spread around the globe.

[DeathAndTaxes]

Well saying "cherry picking" isn't accurate.  It is the most recent 24 hours.  Now if I picked a 24 hour period between 03/18/2013 14:32 EST and 03/19/2013 14:31 EST you might have a point.  The fact is the changes at MtGox occured recently.  They didn't occur 30 days ago hence they wouldn't yet be reflected fully in the 30 days figure.    Obviously more time will either confirm this reduction or invalidate it but given how fast things move in Bticoin world waiting until the 30 day state reflected it fully would make if very old news.

[DeathAndTaxes]

We need 1000s of small exchanges...
We need a generic Open Source exchange web site you can put up in 24 hours...
That can share all or part of Order Books with peers.

I doubt 1000 is realistic or useful.  Can you check on the trust worthiness of 1000 or entities?  Unlikely and it is unlikely anyone else could either.  Still I agree we do need more exchanges and that is why the "potential" reduction in MtGox share is important.  When Mtgox holds a 85%+ marketshare it becomes a very difficult barrier to entry.  Exchanges with low liquidity are unattractive and thus they have low liquidity and remain unattractive.  More decentralization lowers the barrier to entry for other competitors.

Orderbook sharing is possible but exchanges would need implicit trust with on another.  That is unlikely to happen with 1,000+ tiny exchanges run by who knows who.  Lets take a simple example lets say just Bitstamp and BTC-E wanted to share order books.  What would happen is when a stamp customer sells say 100 BTC against a BTC-E order there would be an imbalance between both companies.  Bitstamp would be long 100 BTC and short $x USD and BTC-E would be short 100 BTC and long $x USD.  To settle this the exchanges could either establish lines of credit and clear them daily (transfer the net BTC change by BTC network and transfer the net USD by Bank Wire) or they could each deposit funds (both BTC & USD) on each other's exchanges.  Essentially a prepaid model.

Either way both exchanges need to trust that the other one will honor the trades and won't disappear with the other exchanges funds.  The exchanges should also be large enough to handle the loss of the other exchange without affecting customer balances.  Just as an example if BTC-E disappeared and Bitstamp had $10,000 on that exchange they should be able to cover that without reporting a loss to customers balances.  With enough capital and trust I could see a half dozen or so exchanges enter into limited book sharing agreements.

We need lots of small to medium ones spread around the globe.

Agreed. As we are seeing various localities have differing requirements on registration, licensing, and business procedures.  It probably makes more sense for a Canadian company to become the best Canadian exchange possible then a mediocre one servicing clients around the world.  Until recently there wasn't enough global volume to justify that but that may be changing.  When you have well run local exchanges with easy deposit and withdraw the entire network becomes more powerful.  A user in Canada makes an easy local funding buys BTC, transfers them to someone in say Hong Kong who uses a local exchange to easily convert back to local currency.

[justusranvier]

Code:

Total volume in prior 24 hours: 36,705 BTC 

Name        BTC    Share   Currencies
mtgox     21,397   58.30%  AUD CAD CHF DKK EUR GBP HKD JPY NZD PLN RUB SEK SGD THB USD
bitstamp   5,879   16.02%  USD
btce       4,625   12.60%  USD RUR EUR
btcchina   2,729    7.44%  CNY
campbx       882    2.41%  USD
cavirtex     812    2.21%  CAD
bitcurex     377    1.03%  PLN EUR

We are going to start combining quote feeds from all exchanges and using the "gobal exchange rate" in our pricing models.  

If FC4B/BD were considered a single exchange, where would they fit on that chart?

[usscfounder]

I don't believe decentralized exchanges are viable (at least nothing proposed yet).

Have you seen this?:

I have designed a system for a P2P decentralized orderbook:

I have created a system for a P2P orderbook here:

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

I figured out how to make a P2P Orderbook for a decentralized exchange:

I am updating the post daily but will add more in a few minutes:

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

Decentralized Orderbook - BTA System (Bus - Train - Plane)

BTA - Bus. Train. Plane. BTA is a concept I came up with the solve the problem of a decentralized orderbook for P2P systems.

BTA is a system to move orders from Tier I exchange nodes to Tier II exchange nodes to Tier III exchange nodes according to a predetermined cycle.

BTA is a system akin to a mass-transit public transportation system.

example:
In a mass transit system you could have a bus that would route and cycle through a city with 25 bus stops, stopping at every stop to pick up people. The bus would then drop all of the people off at the last stop which for the purposes of this demonstration is the city's train station. The bus would then repeat the cycle continuously bringing more and more people to the train station.

Eventually the train would arrive to that city and pick up the people who got off the bus and are waiting at the train station. The train would then continue on and cycle through all of the cities of that particular province/state picking up people (who were dropped off by the bus) at every city train station. At the end of the train route would be an airport with a planes ready to pick people up and take them to a specific destination. The train would cycle continuously through all of the cities picking up people and dropping them off at the airport.

The people who were first on the bus and then on the train and now at the airport would then board the plane (jumbo jet if you will) and travel on the plane from the province/state they were in to a final location all the while making stops in every major province/state of that country to pick up additional people. After the plane arrived at the final location it would take off again and cycle through all the provinces/states of the country continuously picking up and dropping off people.

Now, imagine if you will a dating and match making service on one of the sides of that county that has a big convention to help people find a spouse. That service decides to utilizes the same aforementioned mass transportation system to bring people together from all over the country.

People would leave their homes and go to the bus stop. Some people would find compatible matches for themselves at the bus stop or while riding on the bus. Those people would get off the bus pay the fee and then go home with no need to go to to the convention. Those people have what they want; a spouse.

The rest of the people would continue on to the train station and get on the train. But again some people would find matches on the train and at the station; so, they too would pay the fee and go home. They have what they want; a spouse.

What remains of the people would continue on to the airport then get on the plane to go to the convention hoping to find a good match for a spouse.

A P2P BTA (Bus-Train-Airplane) exchange would operate the same way only picking up orders instead of people.

(More in a few minutes)

 

More here in a few minutes:

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

Here is how it works:

P2P BTA Application

How does it work?

In a P2P BTA system a "Bus" exchange node would cycle through and collect orders from P2P "home-server" nodes mentioned in the above posts.  "Home-server" nodes house user accounts and wallets in a P2P network.

1. The Bus exchange server node would collect orders from home-server nodes 1 through 25 (for example).

2. Matching orders (if any) are fulfilled in a mini exchange. Receipts are generated. All unfulfilled orders and receipts are then stored for pickup by an "Train" exchange node.

3. On a predetermined cycle the higher Train exchange node would pick up all of the unfulfilled orders and receipts from all four (for example) of the Bus exchange nodes in the P2P network. All matching orders are fulfilled in a medium sized exchange and more receipts are generated.  Again, All unfulfilled orders and collected receipts are then stored for pickup by an "Airplane" exchange node.

4. Finally, on a predetermined cycle the higher Airplane exchange node would pick up all of the unfulfilled orders and receipts from all four (for example) of the Train exchange nodes in the P2P network. The Airplane exchange is the highest exchange on our example P2P network. All orders would attempt to be fulfilled here. Collected receipts are used to generate reports and to display fulfilled orders.

In our example P2P network, if no orders were fulfilled by the Bus or Train exchange nodes then the Airplane exchange node would have picked up 400 orders.

(MORE TO COME LATER TODAY)

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

[QuantPlus]

I don't believe decentralized exchanges are viable (at least nothing proposed yet).

Have you seen this?:

I have designed a system for a P2P decentralized orderbook:

I have created a system for a P2P orderbook here:

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

I figured out how to make a P2P Orderbook for a decentralized exchange:

I am updating the post daily but will add more in a few minutes:

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

Decentralized Orderbook - BTA System (Bus - Train - Plane)

BTA - Bus. Train. Plane. BTA is a concept I came up with the solve the problem of a decentralized orderbook for P2P systems.

BTA is a system to move orders from Tier I exchange nodes to Tier II exchange nodes to Tier III exchange nodes according to a predetermined cycle.

BTA is a system akin to a mass-transit public transportation system.

example:
In a mass transit system you could have a bus that would route and cycle through a city with 25 bus stops, stopping at every stop to pick up people. The bus would then drop all of the people off at the last stop which for the purposes of this demonstration is the city's train station. The bus would then repeat the cycle continuously bringing more and more people to the train station.

Eventually the train would arrive to that city and pick up the people who got off the bus and are waiting at the train station. The train would then continue on and cycle through all of the cities of that particular province/state picking up people (who were dropped off by the bus) at every city train station. At the end of the train route would be an airport with a planes ready to pick people up and take them to a specific destination. The train would cycle continuously through all of the cities picking up people and dropping them off at the airport.

The people who were first on the bus and then on the train and now at the airport would then board the plane (jumbo jet if you will) and travel on the plane from the province/state they were in to a final location all the while making stops in every major province/state of that country to pick up additional people. After the plane arrived at the final location it would take off again and cycle through all the provinces/states of the country continuously picking up and dropping off people.

Now, imagine if you will a dating and match making service on one of the sides of that county that has a big convention to help people find a spouse. That service decides to utilizes the same aforementioned mass transportation system to bring people together from all over the country.

People would leave their homes and go to the bus stop. Some people would find compatible matches for themselves at the bus stop or while riding on the bus. Those people would get off the bus pay the fee and then go home with no need to go to to the convention. Those people have what they want; a spouse.

The rest of the people would continue on to the train station and get on the train. But again some people would find matches on the train and at the station; so, they too would pay the fee and go home. They have what they want; a spouse.

What remains of the people would continue on to the airport then get on the plane to go to the convention hoping to find a good match for a spouse.

A P2P BTA (Bus-Train-Airplane) exchange would operate the same way only picking up orders instead of people.

(More in a few minutes)

 

More here in a few minutes:

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

Here is how it works:

P2P BTA Application

How does it work?

In a P2P BTA system a "Bus" exchange node would cycle through and collect orders from P2P "home-server" nodes mentioned in the above posts.  "Home-server" nodes house user accounts and wallets in a P2P network.

1. The Bus exchange server node would collect orders from home-server nodes 1 through 25 (for example).

2. Matching orders (if any) are fulfilled in a mini exchange. Receipts are generated. All unfulfilled orders and receipts are then stored for pickup by an "Train" exchange node.

3. On a predetermined cycle the higher Train exchange node would pick up all of the unfulfilled orders and receipts from all four (for example) of the Bus exchange nodes in the P2P network. All matching orders are fulfilled in a medium sized exchange and more receipts are generated.  Again, All unfulfilled orders and collected receipts are then stored for pickup by an "Airplane" exchange node.

4. Finally, on a predetermined cycle the higher Airplane exchange node would pick up all of the unfulfilled orders and receipts from all four (for example) of the Train exchange nodes in the P2P network. The Airplane exchange is the highest exchange on our example P2P network. All orders would attempt to be fulfilled here. Collected receipts are used to generate reports and to display fulfilled orders.

In our example P2P network, if no orders were fulfilled by the Bus or Train exchange nodes then the Airplane exchange node would have picked up 400 orders.

(MORE TO COME LATER TODAY)

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

People keep trying to "solve"...
The network part of "Decentralized BTC Exchanges"...
Which has never been a problem.

The problem is getting USD/EUR/CNY/etc into a specific bank account...
In a decentralized manner (meaning from a random party)...
Which MAY circumvent Banking Regulations if it's, say, < $10,000.

Ripple does solve this...
The only way possible it can be done: BTC to Commodity to Fiat...
Where the Commodity is a Ripple "IOU"...
But Ripple is always explained in an incoherent manner probably for legal reasons.

[malevolent]

I see a lot of topics sprawling about decentralized exchanges and ideas how it could be done; as more are closed down and hacked, more people see the need for safety and independence from the regulatory measures government can use to kill businesses and enforce monopolies.

I believe that without successful lobbying or greater economical, legal and political influence it is the Bitcoin exchanges and users that will have to adjust if they will want to deal with Bitcoin+fiat combination.

So what is the solution? Apart from moving to a poor country where it would be possible to bribe oneself's way in (but still have restrictions when dealing with the rest of the world that has to comply with the regulations or face sever penalties).

What would have to be done is people would need to use Bitcoin not because they think it will make them rich due to its deflationary nature and not necessarily because it is a safer payment system because it does not require the user to trust extra intermediaries, but because it can be a safer way of storing wealth. Safe from the government who can at any time outlaw gold (look what's happening now in Illinois and what FDR came up with in 1933 to name just examples in US) and with steganography safe from rubber-hose cryptoanalysis.

If people have more trust in Bitcoin and Bitcoin becomes less volatile, more people should feel confident in having Bitcoins as a store of value and feel less and less need to resort to using fiat if this also means they can use Bitcoins to pay for most of their costs of living. That is the day when we will have less of a need to use and rely on exchanges. This will take time, if it ever even happens. Maybe we will see other alt-coins outpacing Bitcoin or being used for different types of transactions. Litecoins or some other scrypt-based with faster confirmation times could be used for low-valued transactions like groceries, whereas Bitcoins could be used for a smaller amount of high-valued transactions like real estate, cars, etc.

[TangibleCryptography]

Code:

Total volume in prior 24 hours: 36,705 BTC 

Name        BTC    Share   Currencies
mtgox     21,397   58.30%  AUD CAD CHF DKK EUR GBP HKD JPY NZD PLN RUB SEK SGD THB USD
bitstamp   5,879   16.02%  USD
btce       4,625   12.60%  USD RUR EUR
btcchina   2,729    7.44%  CNY
campbx       882    2.41%  USD
cavirtex     812    2.21%  CAD
bitcurex     377    1.03%  PLN EUR

We are going to start combining quote feeds from all exchanges and using the "gobal exchange rate" in our pricing models. 

If FC4B/BD were considered a single exchange, where would they fit on that chart?

Our daily volume is very volatile so if we look instead at average daily volume over prior 30 days it would be between just under cavirtex.

[Abdussamad]

Our daily volume is very volatile so if we look instead at average daily volume over prior 30 days it would be between just under cavirtex.

Some time back you said you were just behind btc-e:

Thanks, however in full disclosure the past two week may be an aberration and too short to draw any conclusions.  On a longer timeline (say 30 day moving average) we are just behind btc-e.

So quite a fall in your business then?

[malevolent]

Our daily volume is very volatile so if we look instead at average daily volume over prior 30 days it would be between just under cavirtex.

Some time back you said you were just behind btc-e:

Thanks, however in full disclosure the past two week may be an aberration and too short to draw any conclusions.  On a longer timeline (say 30 day moving average) we are just behind btc-e.

So quite a fall in your business then?

He is offline so I'll respond

Volume on BTC-E has increased substantially in the past two months with increased international interest and (correct me if I'm wrong) I think most of FC4B's customer are based in US.