Topic: Mt. Gox Volume Way Down since Dwolla fiasco. - page 2. (Read 1357 times)

dont worry, it will be fine once mtgox sort out their problems.

It's because of the archaic banking practices of the US banking system.. Initiating a transfer between banks takes FOREVER.  The ACH system we have is very broken, but because it's widespread, no one complains about it.  Dwolla to US Bank Account takes about 3-5 days, but since banks don't work on the weekends, and only clear things until 2PM, basically you can only transact stuff on M-TH and things only clear on T-F.  Heck, even depositing a check (or cheque for you Europeans) to my bank takes a full 24 hours before I can get the first $25 out.  Once again, because it's widespread, only those of us who have spent any time outside of the country know that it could be a lot better.

The issue is interoperability, for a transfer within a bank, seconds at most and things are cleared.  For this reason, a lot of Americans (like me) open a bank account with the bank our employers banks at (more when paper checks are issued, less now that direct deposit is an option(.  That way, when paychecks are issued on Friday, I can take it to the bank after work, and immediately have the funds available in my account if I want to use that money that weekend.  We have an option here to "deposit a check as cash" if it's drawn on the same bank.  The teller cashes the check immediately (with no fee that check cashing places charge) and then deposits the money into my account with 100% availability.  Often, I'll immediately withdraw the full amount of the check and walk over to my real bank next door (with much better interest rates) and deposit the money there.  The alternative is to deposit a check into your real bank account, and then it takes up to 7 business days (or the second Tuesday after you deposit the money) for the funds to be available in the account.

Confused yet?  So are we.

I know that I moved my funds out of MTGOX because of this Dwolla situation, and I know that many others have done the same.  New bitcoin exchanges are popping up and the time is ripe for competition.  I see others investing their bitcoins in bitcoin services (mining hardware companies for example) and I think that this trend will continue.  Just a little calm before the storm IMO.  Summer will heat up, new services and ideas will arise...volume will rise IMO.

Honestly, I think this is good news.

I've got nothing in particular against Mt.Gox, and as a citizen of Euro-land I couldn't give a rat's ass about this whole Dwolla thing. To this very day it still confuses me why Americans (unlike the rest of the world) always have such problems with normal wire transfers, and need bizarre workarounds like Dwolla, or ridiculous alternatives like friggin' money cheques (seriously, WTF!?)

But it's really good for the Bitcoin ecosystem if there is more diversity and competition. Mt.Gox still has too much market influence, and is still somewhat of a "single point of failure" in terms of exchanging Fiat vs Bitcoin.

Anyway, let's hope an OpenTransaction+BitMessage based P2P exchange system will see the light of day soon, so we're done with these centralized exchanges for good. No more government intervention whatsoever

Missed the boat.... was noticing the big price difference between the two exchanges. I would think 100 BTC in play would make it worth it. And if the market suddenly dropped and you were caught holding BTC... no biggie... it will likely comeback. I think BTC is was under valued right now.

Hahaha, I was JUST thinking about this yesterday and even made myself a nice spreadsheet to calculate prices automatically via google doc.

I had to do about 8btc to make significant profit.
How much were you doing?

I wouldn't worry too much. From attending some bitcoin meetups and conferences recently it seems that many people are working on their own exchanges. Give it some time and there will be plenty of competitors.

Might be interesting to check the numbers

There needs to be more competition in this sector. Mt. Gox needs to represent a smaller market share.

Which means....

I can no longer send Dwolla to CampBx, Buy BTC low, withdraw BTC to Wallet, send BTC to MtGox, Sell BTC at MtGox with a spread, withdraw to Dwolla, rinse and repeat

This is one of the bad points of the BTC Exchanges - there is no NBBO/routing to exchange with the best price.

Haven't analyzed it enough, but just from what I see it seems like daily volumes pre-Dwolla fiasco were up near the 100k range, and now that traders can't fund/withdraw with Dwolla, the volume has dropped way down below 20k. Quite a financial hit.

It does make you realize that if all the banks decide to pull the rug out from under the Bitcoin movement - they could. We do not live in a free world IMO.