Topic: How much does it cost to start a bitcoin exchange? (Read 5045 times)

   I think you're right.. it would be better if people could just start using BTC for transactions directly, rather than as a means of sending payment to be converted into fiat. It just seems to me like people would need to to be able to establish the convertibility of BTC in a very concrete way before it could get to that point.

  The post was about Kenya, but honestly I think the remissions market is much bigger in Nigeria, plus Nigeria is very internet friendly, I mean look at the ingenious scams they have produced!

Probably, if it was limited to local customers to start with. There are 170 million people in Nigeria though, so you would need to expand quickly.

1/100th of a real reply, sorry.

Edit: would be a great market for a cellphone-based, p2p exchange thing

I am currently living in Africa.

Yes, it can be dangerous. It can also be safe. I'm still in one piece but there have been incidents suggesting how bad things can get.

Anyway, I have had the same thoughts as you about an exchange here and I concluded that it wasn't worth it. I'm still open to discussion though, PM me if you wish.

   How much would you need to start an exchange, from website design, getting a stock of fiat and bitcoin, filing for permits, so on and so forth?

    I just read this article about the feasibility of bitcoin in Kenya,

http://www.thegenesisblock.com/guest-post-kenya-primed-for-wide-scale-bitcoin-adoption/

 given the adoption of M-PESA, and I thought about a friend of mine whose uncle does business in Kenya.

   There are a lot of venture capitalists out there who have a lot of vested interest in bitcoin rise in useage- I mean, if the Winklevoss brothers bought 1% of all bitcoins, or 110,000 BTC, it seems like it would be wise on their part to invest in businesses developing models for bitcoin adoption in Africa. I think the global remissions market is one of the biggest opportunities not only to increase the value of bitcoin, but to translate the efficiency gains of bitcoin to increased quality of life for millions of people.

     Is anyone working on making this a reality? Is anyone interested in drafting a business plan? Even if a start up trying to set up a bitcoin exchange in Kenya was never profitable, it would probably be worth investing in it for those who are holding wealth in bitcoin, because the increased demand for bitcoin when Africans find out about the transaction fees and speed of transfer will probably drive a ridiculous run up in bitcoin value. If a bitcoin millionaire were to invest in this, it would be a win-win- bitcoin value increases, families with family members working abroad get increased income.

   Of course, it won't just happen on its own. Somebody has got to move this. Anyone feel like putting together a tight and well designed plan and putting it on some crowdfunding platforms? Even if we can't get it financed, more people will find out about bitcoin and its potential if we try.

    I know there are fearmongers out there who think Africa is dangerous, filled with corrupt officials, etc. I have spent about 10 months in Africa, and I get the impression that what you end up paying in bribes to officials is roughly equivalent what a business in the US pays in fees and taxes to official organizations. The only reason it's not called corruption, bribes, or protection money is because they give you a receipt.

  There is an element of risk, but potential return on investment is usually proportional to risk. Africa- good food, good weather, crazy, chaotic, beautiful. Internet in Nairobi is as fast as 20 mbps - is that fast enough to run an exchange? I have no internet or computer knowledge, but I have traveled and I come from a family of brokers and entrepreneurs, so I know an opportunity when I see one.


     Come on, who wants to take bitcoin to the next level? If you don't have anything you're willing to die for, than you don't have anything worth living for. I for one, am willing to risk my life for bitcoin, and my experience in Africa has been overwhelmingly positive. One thing I learned travelling: the first thing to ask when someone tells you a place is dangerous is "Have you been there?" If the answer is "No," just ignore.

   Anyway, if anyone knows what it would take to start an exchange in Kenya, speak up! It's only a matter of time before someone does this, why not us?