Topic: Dwolla growth email - success and relation to Bitcoin? - page 2. (Read 5853 times)

You mean like cutting costs? For a relatively small investment (some compute time on existing hardware) they could invest in American bitcoin companies and embrace it, or at least give it a chance to grow.  If it works out, it could dramatically reduce the cost of doing business, leaving more for the money grubbers in DC.  Not to mention it's usefulness in collecting campaign donations.

hopefully later.

plus, don't you think they have enough stuff on their plate at the moment?

This is amazing information - thank you for sharing, Mark.  Based on our conversations with Dwolla, we knew Bitcoin is big for them. Now we have the numbers about exactly how big it is.

We should work with Dwolla to lobby for Bitcoin.  Sooner or later we are going need a lobbyist in Washington DC, and Dwolla along with exchanges/platforms can be a major contributor towards this effort.

     - Keyur

One that doesn't even mention the source of their majority income in their literature.

The fee's don't really change. The fee's are based on USD not on BTC. If you're buying $50 worth of Bitcoins, it doesn't matter if you get 25 bitcoins back or 2 bitcoins back. You then go send those 25 or 2 bitcoins to the seller, get your stuff, the fee's are the same. The seller sells 25 bitcoins or 2 bitcoins for $50, the fee's are the same. The core transactions of BTC don't rely on BTC sustaining a magic value. People used BTC to buy stuff when it was $2 and they did the same at $20. If BTC was 50 cents, you'd still load $50 and buy 100 BTC. Then you send the BTC and the seller sells his 100 BTC for $50.  

Miners would revolt, but even that doesn't change much. We've seen a mass exodus of miners already in Namecoin. Difficulty was way too high, the guys left worked through it, it adjusted, namecoin is running fine. BTC has gotten big enough any mining exodus would take weeks and the difficulty would keep adjusting as it happened. The network works just fine at 1,500 ghash as it does at 15,000 ghash.

As long as people use BTC as a currency (which is seems lots of people are) then it will remain very strong. The market, traders, investors, miners, they're all leeching the system trying to make money for themselves and really have little effect on the future of BTC. The importance of the network remaining "profitable" for those people is a joke. The grass roots (no pun intended lol) buyers and sellers run the show.

One where the majority of their business exists simply to facilitate a competitor.

what kind of a business thinks its majority income is a touchy subject?

So if Dwolla in July is reaching $1m/day figures, then back in June according to their own chart it was, like, 1/3 of that... or roughly $200-$400k per day in June.

MagicalTux says that in June they were getting $227k per day on average.

In other words, the MAJORITY of Dwolla's business is directly related to Bitcoin, at least in June.

This is pretty fascinating actually! I wonder if they ever talk about it in the office... or if it's kinda a touchy subject that nobody wants to bring up 

removing the stuff in parenthesis:


As far as how much was for incoming (deposits) versus outgoing (withdrawals) I don't know.

$6.8 million from Dwolla or from everywhere?

How much money is entering mtGox from Dwolla?

On their chart, Dwolla is claiming a million per week in June and a million per day in July. 

But the rally to $30 was in June, so either Dwolla has a substantial non-BTC customer base, or a lot of USD has moved to MtGox this month

We got in June a total of $6,824,168.53 of funds moving around (16640 transactions in both deposits and withdraws) over Dwolla, equivalent of $227,472.28 per day, or $1,592,305.99 per week. Should be noted that the site was closed on June 20th, so in reality amount per day/week is higher.

Well we know from hacking history that mtgox is around 60,000 accounts. So assuming half of those people used dwolla instead of liberty reserve then thats about $300 a person per week. That sounds like a fairly reasonable assumption. Only mtgox really knows how much people deposit and withdraw per week i guess, but those numbers are logical.

with out bitcoin Dwolla is Gonewolla I do believe!

It's reasonable to assume that a substantial portion of that $1M/day is going into Bitcoin exchange accounts. This is an indication that their are more potential buyers to keep the price from dropping substantially and possibly drive the price up. 

I've funneled thousands through Dwolla and the only reason I've ever used it was to buy Bitcoin.

That's why it's funny when people freak out over BTC prices. There are a ton of people buying and using bitcoins. These people aren't trying to make money off BTC, they aren't mining, they aren't "investing", they're using it for what it is, a currency. BTC has a strong future because of the people using it as a currency, not because of the miners, traders, investors. Those people are trying to make money off BTC. As long as people use it to exchange goods and services, which clearly it looks like they are, BTC is golden.

The price of BTC doesn't matter. $5 or $20 it really has no effect. People sell based on usd/euro etc... No one locks in prices at a set BTC. If you sell a $20 item for 1 BTC or 4 BTC it really doesn't change anything. The person buys the bitcoins, sends them, the seller cashes them out. At $5 and at $20 it's the same process. It's always been discussed that 50-80% of miners leaving wouldn't really change a thing. Day traders, investors, people playing the exchanges don't matter. All those people could fuck off right now and people would still be buying BTC, using BTC, and sellers selling the BTC.

Which is why there's no collapse. The people powering BTC, the people using BTC, don't give two shits about how much it's currently worth on the exchanges. There's APIs now that auto convert USD to current market value BTC. Does the API, buying, seller really care if it's $5 or $20? The API just converts it to the USD value and sells the item.

If anything BTC hitting $5 would get rid of the short term for profit miners who are drama queens every time the price fluctuates because they're in a panic to get their money back from their investment. It also gets rid of the people treating BTC like gold bullion.

BTC was never created to be a collectible. It's a virtual currency. Letting people can exchange goods and services. So Jimbo in Poland doesn't need a bank, visa, mastercard, or paypal to sell his homemade bellybutton lint sculptures. He can accept BTC from every corner of the planet. People seem to think that having people profit off of the investing, trading, mining is the core of BTC. It's not. People using BTC as a currency is the core of BTC, will always be the core of BTC, and those people don't give two shits what the current market value is.

They login, buy btc, spend them, get their shit. Whether it's $5 or $50 doesn't change anything. If all the people holding BTC like it's gold bullion cashed out, the people who are using the currency would still be using it the next day, the next week, the next month.

I expect that Dwolla would be vastly more palatable to governments due to (what I am supposing without specific knowledge is) it's adherence to 'know-your-customer' procedures and non-P2P architecture.  I think it's safe to bet that if any 'legitimate' company operating in the US 'knows-its-customers', so to do a lot of government agencies, their friends, and their contractors.

So, I would suppose that governments would do what they can to foster Dwolla and it's cousins and deter Bitcoin (and it's possible cousins.)  I'm hopeful that Bitcoin will eventually strangle or starve out those in the other camp at an opportune time...at least I am currently and hope that nothing changes my mindset.  How this plays out will be very interesting.

I would have never used dwolla if it were not related to bitcoin. Hell, I don't even have a facebook account.
We should tell them! email on the way!

Yeah, if not for being the cheapest option to purchase BTC I would have never used Dwolla.