re: Winklevoss Twins Plan First Fund For Bitcoins

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oh, and before you go believing your buddy Russian about 4% spreads and stuff, just know that he's lying. you can go check out the exchanges for yourself if you want. hopefully people around here know that LSURussian lies enough so that they'll go check his numbers

current btc-e ask: 69.697
current btc-e bid: 69.681

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You have been caught in another of your lies, wiki.

Here is a copy & paste from Bitcoinity.org for btc-e: ( LINK)

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69.92

USD / BTC bid: 70.51 ask: 68.90

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The spread is now $1.61 between the buy/ask prices. That is 2.34%, which means the current spread has narrowed slightly since I posted above.

Here is the quote from Mt. Gox on the same site:

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74.17

USD / BTC
bid: 75.40 ask: 72.80

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That's a spread of 3.57% which means the spread has increased slightly for Mt Gox since I posted above.

Added to your .99% X 2 it is STILL more expensive to exchange btc for dollars than any fee a buyer pays to use his credit card.

Plus the buyer has protection against a fraudulent seller. With bitcoins, the buyer is at the mercy of the seller to deliver as promised.

ETA: And now you've responded to one of my posts....

quote:

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oh, and before you go believing your buddy Russian about 4% spreads and stuff, just know that he's lying. you can go check out the exchanges for yourself if you want. hopefully people around here know that LSURussian lies enough so that they'll go check his numbers

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I hate to break it to you, but even though it may not be 4% spreads Russian is right on this. You have to double you spreads to get to your total transaction cost expectations and that spread at the top of BTC-E is the best quoted bid/ask blocks which differ in size. Usually you'll never execute all of your order at the best quote even in the most liquid currency markets unless you're doing over-the-counter*. So you'll start laddering up the blocks which you can see start widening out pretty damn quickly.

I'm giving you the benefit of the doubt in this case as I know you aren't versed in finance. However those bitcoin spreads are tighter than anything else I've seen, and that reference bid/ask for the USD/EUR may be the widest I've ever seen. Ever. That's worse than a lot of loan shark style currency exchanges I've seen around NYC.

*I need to footnote this to high heaven but that would be a completely different thread.