Hi,
I have a question.
Using places like LocalBitcoins, I see I have a particular rate that I will have to pay for BTC. Then, I sent this BTC to another country, and if the receiver also goes to LocalBitcoins and sells the BTC, he gets lower money (of course, depending on the seller).
Now, if I have Western Union, I send $200 and pay a fee of $9 (for example). The receiver in the other country receives the cash based on the foreign exchange of the currency that was locked in upon the time of sending.
What am I missing? I'm seeing everywhere that it says Bitcoin will remove fees, etc but the disparity in the selling/buying is so much that it's almost like paying fees similar to WU.
Thanks!
bitcoin doesn't remove fees, that was said in the beginning when fees were cheaper or didnt need to have a fee. now you basically need a mandatory fee of .0001 btc or usually .00005 btc for a transaction to go through, about 5 cents or 2.5 cents is what that works out to.
if you are sending 10 bucks its still not a big deal, think of sending 100 bucks or a few thousand bucks that way, using your western union is 9 bucks, using btc is 5 cents.
also right now newegg is giving 30% off if you pay in bitcoins