Post
Topic
Board Speculation
Re: Mtgox, Bitstamp "Let's calm down": 700, 550$. China "I don't give a fuck": 900$.
by
bitcoinBull
on 19/11/2013, 18:47:20 UTC
After all, arbitrage between exchanges seems to be slow and not very effective in the past.

Yes, that's because most exchanges are still relying 100% on bank transfers for moving fiat. The spreads will come down as more exchanges become ripple gateways (bitstamp was the first, kraken is next in line).


And that solves the problem of bank transfers, how?

Because when an exchange becomes a ripple gateway, you can withdraw fiat IOUs and trade them for another exchange's fiat IOUs. Which you can then redeem (deposit) at the other exchange. Presto, fiat moved without a bank transfer.