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Topic: Better Bitcoin Exchange Fee Structure? (Read 616 times)

member
Activity: 63
Merit: 10
July 02, 2013, 09:06:42 AM
#1
Exchanges currently charge a small percentage of traded value both in fiat and Bitcoins as fees. In the example of MtGox, they earn BTC0.006 and $0.6 if a Bitcoin is sold/bought for $100.

I find this rather unhealthy for the Bitcoin economy; it forces exchanges to trade Bitcoins themselves. If anything falls short of a 100% profit margin, exchanges have to cash out their Bitcoins frequently to pay for expenses, which makes things quite messy.

Why not impose an asymmetric fee? i.e. Approximately 1.2% in fiat, instead of 0.6% both ways. So if I sell BTC1 for $100, I get around $98.8, and the buyer gets his whole BTC1. Here are some effects on several parties involved:

  • Reduces uncertainty for exchanges, and more subtly so for other people
  • Increases apparent costs for merchants, while decreasing apparent costs for consumers
  • Does not affect speculators (who buy Bitcoins and sell them at later date)
  • May distort demand/supply slightly

There seem to be both advantages and disadvantages, but I think for most of us it is good in making things clearer.
Does anyone else here think this could be a viable idea? Not that I have any power over any Bitcoin exchange, but for me it would be nice to see this change.
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