Bitcoin Arbitrage MT.Gox & Bitstamp Chinese and US Bank Accounts

zhangweiwu

sr. member

Activity: 313

Merit: 250

Hardly. I did a hand of arbitrage 5 months ago, when the price was 130USD/BTC, revenue 3000$, and I requested cash withdraw from MtGox and 5 months later I had to cancel the withdraw request (succssefullly cancelled it last week) because the bank account to receive the money expired before they can process the withdraw. If I have not done the arbitrage, instead bought BTC witht he money, the worth is perhaps already 10-timed. There is a good reason why MtGox's price is 10% higher than any other exchange, that is because basically you can't get money out from it.

Suppose that you can withdraw in 6 months, you can best the bitcoin holders only if the fiat price of bitcoin raised less than 10% in 6 month, which never happened in bitcoin history.

The other direction doesn't work neither: the time MtGox price is below other exchange is about 10 minutes per year, and that is usually during a sudden crash, so, even if getting money from Chinese exchange works, there are 10 minutes of time you can do the trading in a year.

joesmoe2012

hero member

Activity: 882

Merit: 501

Ching-Chang;Ding-Dong

Can't send money internationally easily from china account in large amounts.

So no arb possible.

Chancellor

full member

Activity: 154

Merit: 100

Quote from: marko9812 on January 13, 2014, 06:35:56 AM

There's $105 spread?

Current Prices
Mt.Gox: $915
Bitstamp: $810

Well, but how a Chinese bank account can help you with arbitrage, while Mt.Gox is a Japanese company? Maybe account in an Japanese bank would be more useful. They seem to arrange some new ways of withdrawals, however everything on Mt.Gox is happening slooooowly... I've waited over three weeks for account verification, then I wait for enabling my bank account for withdrawals, after adding it in their new Withdrawal Center... After that I will try to sell some small amount of BTC and withdraw fiat. I guess it will take a month or something like this. In my opinion if there was some working method for relatively fast withdrawals of larger fiat amounts from Mt.Gox, the spread would be bulldozed in a few hours...

marko9812

newbie

Activity: 33

Merit: 0