Curious to know what you all think would be major disruptors for Bitcoin exchanges. Happy to kick things off with one of my own pet peeves, so here I go:
- Exchanges typically take a percentage-based fee for every trade. The exchanges that don't take a % fee on a trade take a % fee on withdrawal. The one's that don't charge a fee, front-run/sell their own users to high-frequency traders (they call this "order flow") who then make their own trade based on any significant trends or actions. Taking a % fee is not in accordance to the spirit of Bitcoin, at least in the sense that if you transfer Bitcoin on the blockchain, it's for a fixed fee that is for the most part independent of the amount. So I believe an exchange that charged a fixed, fair and predictable fee in addition to not selling their users or their trades could be s disruptor.
Am I totally off base? Always curious to know what the Bitcointalk community has to say. So if you have an opinion, please share it.
I don't necessarily think that the commission exchanges take is the most concerning thing.
The majority of traders are completely fine with the exchanges taking a small percentage off trades, as demonstrated by the popularity of exchanges such as Binance, Coinbase, etc.. If people are predominantly concerned about fees alone, they wouldn't use Binance with a 0.1%, but rather use exchanges which offer much lower percentage rates (there are even sites with negative maker fees).
Perhaps it matters more to whales, where percentage fees are a much bigger issue than plat fees. But for average traders, they should be more concerned about transaction fees to and from the exchange.
Besides, lowering the fees alone on an exchange is barely a "disruption" to the industry. It's just modifying existing parametres.
What I think will really disrupt the entire field is if decentralized exchanges are able to exist, whilst operating across multiple currencies, as opposed to the current model where it's limited to digital assets on one particular platform. Something like the BTS decentralized exchange, except it's not trading derivatives, but rather the underlying asset itself.
