Ninjastic
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Board Bitcoin Discussion
Re: TradeHill - Why we no longer accept Dwolla and an open letter to Ben Milne
by
enmaku
on 28/07/2011, 17:09:06 UTC
Quote from: the founder (FlexCoin) on July 28, 2011, 05:06:24 PM
Quote from: enmaku on July 28, 2011, 05:01:01 PM
Quote from: Newton on July 28, 2011, 04:58:22 PM
That brings up an interesting idea.  If the bitcoin volume is really as significant a percentage of Dwolla's revenue as some suggest, why couldn't a bitcoin business buy Dwolla?  If bitcoins are a large part of their revenue, it could be a profitable investment even with a significant loan.

A USD exchange needs something like Dwolla's existing infrastructure to take in cash efficiently for the mass market, and they probably make a larger profit per dollar moved than Dwolla does.

Mt Gox buying Dwolla = instant monopoly...

Not even close.


Tradehill is the biggest MtGox competitor for USD trades and it has 7.8% of Mt Gox's volume. Also, for moving USD into and out of exchanges, Dwolla is the standard right now. Perhaps the EUR or PLN markets would still thrive elsewhere but for USD trades, MtGox + Dwolla accounts for the vast majority of the market. How exactly would such a merger be "Not even close"?