I'm also not sure that SR is that large a percentage of BTC commerce: I suspect their average transaction is pretty small. Are they moving that much volume?
Well, no, but I sort of don't think anybody else is either.
Or rather, they're moving a lot of volume compared to the rest of the bitcoin-for-actual-commerce world, but still very little.
Donations (particularly WikiLeaks) are another "killer app" for Bitcoin,
Ah, very good point, I had missed that!
and there are a bunch of IT guys moonlighting for BTC as well. That could move a lot of coins.
Hrm, really? I mean, I know there are a lot of people offering
to moonlight for BTC. I actually tried doing that and found it far less productive than just going to Craigslist and mailing checks back and forth. But I guess that's because I'm in the same country as my clients.
or directly selling the escrowed coins and buying them back to deliver to the merchant. (Hopefully they've considered the privacy implications.) Do you know if they're doing something like that? If so, the net hold time didn't just go from 8 days to 7, it went from 8 days to probably less than 1.
Holy cow, they probably are. I hadn't thought of that. They definitely started offering the service before Bitcoinica was up and running, so that's probably how they were doing it at least at first.