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Topic: Why The Price Difference Between MtGox & BitStamp? - page 2. (Read 11080 times)

hero member
Activity: 826
Merit: 508
It is not like you cannot get USD out of MtGox, you have to wait. The waiting part is what prevents people from going there.

No.  You really can't get it out, if you read in the forums the queue is getting longer and longer and Gox can only process 10 per day.  If that.  You really think a US bank is going to process a wire from Mt.Gox after their funds were seized by DHS? 

Gox doesn't need a US bank, though. There are countless high-margin offshore payment processors who can cut foreign checks and push through wires via intermediary banks. US banks won't touch Gox, but plenty of payment processors will. Gox thus far is clearly unwilling to shave its profits (and it may have to shave them quite considerably) to do what is necessary to meet withdrawal volume.

The question is -- how much market share will Gox bleed before it does anything about it? If they are simply holding out for a US-facing bank that will continue the old status quo, good luck to them. That ain't happening.

No matter what, Gox needs to bleed out a lot of market share before they can be a sustainable business.
full member
Activity: 238
Merit: 100
It is not like you cannot get USD out of MtGox, you have to wait. The waiting part is what prevents people from going there.

No.  You really can't get it out, if you read in the forums the queue is getting longer and longer and Gox can only process 10 per day.  If that.  You really think a US bank is going to process a wire from Mt.Gox after their funds were seized by DHS? 
newbie
Activity: 45
Merit: 0
It is not like you cannot get USD out of MtGox, you have to wait. The waiting part is what prevents people from going there.
sr. member
Activity: 332
Merit: 253
If you can afford to wait 8 weeks, it is not a bad deal.
full member
Activity: 238
Merit: 100
It is such a big difference.

Today, MtGox US$118.00/BitStamp US$102.00

Surprised MtGox is still in business.  Why do people go there?

I have no idea why people still go there.
legendary
Activity: 4438
Merit: 3387
It is such a big difference.

Today, MtGox US$118.00/BitStamp US$102.00

Yes, the bait in that trap is quite tempting!
sr. member
Activity: 302
Merit: 250
It is such a big difference.

Today, MtGox US$118.00/BitStamp US$102.00

Surprised MtGox is still in business.  Why do people go there?
legendary
Activity: 4438
Merit: 3387
People cant get dollars out of Mt.Gox at the moment - which means more people want to buy BTC on there (so they can withdraw) and less people want to sell (because the can not withdraw the dollars they receive).

Basically, a dollar on Mt.Gox is not actually worth as much as a dollar on other exchanges - so it takes more Gox dollars to buy a BTC.

Exactly. Because people can't get their USD, EUR, AUD, etc., out of MtGox, they are dumping those and buying BTC. While it might seem like selling your BTC on MtGox is easy money, you have to consider that it will be stuck there for months.
donator
Activity: 1736
Merit: 1010
Let's talk governance, lipstick, and pigs.
Here is what people are doing *

1. Buy BTC on Bitstamp
2. See higher price on MtGox
3. Sell BTC on MtGox
4. Realize you can't get cash out of MtGox
5. Panic sell at higher price
6. LOL at others making the same mistake

*Present company excepted, of course.
sr. member
Activity: 294
Merit: 250
BTC --> ??? --> PROFIT
People cant get dollars out of Mt.Gox at the moment - which means more people want to buy BTC on there (so they can withdraw) and less people want to sell (because the can not withdraw the dollars they receive).

Basically, a dollar on Mt.Gox is not actually worth as much as a dollar on other exchanges - so it takes more Gox dollars to buy a BTC.
newbie
Activity: 55
Merit: 0
Different exchanges = different prices.
This is good, and ensures the exchanges are not linked together.
sr. member
Activity: 302
Merit: 250
I do not understand the price difference between the two.

Why trade with MtGox when BitStamp is much cheaper?

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