It's hard / expensive to get money to the exchanges. The only option is to do a SEPA transfer to one of the exchanges, and then there is a several day wait, plus several bank charges and none of the banks accounts I have allow SEPA via internet so I have to call them or go in branch and do it manually, and then they don't like it with large sums of money.
BTW, did I mention the fees for SEPA? Oh and the terrible rate most of them give for £££ to euro exchange for a SEPA transfer.
It all adds up, but yes the rates on places like localbitcoins are inflated, but if you want bitcoins NOW and not in 3 - 5 days, then it can still be more profitable.
Still i think how much it is inflated over here at the moment is quite unfair, I wouldn't put a large portion of it down to supply and demand. If the banks were not *****! We would not have that problem. Every solution has always been thwarted by the banks. Recently IBWT was set up which claimed to be a regulated exchange in the UK but the bank closed there account upon discovery I believe.
Back in the good old days of Barclays Pingit to blockchain.info.
Could all this not be solved with ripple? Although I still haven't got my head round it properly.
