Quote:
Originally Posted by crucifissio
You still have to cash out that money...how much does it cost to cash out that sum providing you find the customers willing to jump the extra hoops and pay the added fees in the first place...you are just focusing on a part of the transaction that is free...
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My exchange, btc markets, allows me to trade BTC into AUD of that size for 0.7% (
look here).
Note that this also bypasses PayPal's currency conversion fees (it charges a premium over the market rate).
For example, PayPal's current conversion displays that in order for me to reach 1,000 GBP, I need to pay $1,788.69 AUD. XE.com shows that the current market rate for 1,000 GBP is actually $1704.26 AUD. That means that the PayPal transfer above would have cost me an additional 84 dollars per every 1,000 GBP I withdraw (or thereabouts, I'm doing a reverse measurement for ease.)
With over 3,000 GBP withdrawn, I would have paid an additional $252 AUD in exchange fees for that transfer. That's $190 USD at today's market rates.
So yeah, that PayPal withdrawal cost me a total of $350 USD. Getting Bitcoin and selling it on a local market would have cost me 0.7% of the total transfer amount. Somewhere around $30 USD. Maybe an extra $1 for the Bitcoin transfer.
$31 vs $350? I think I know which one I'd rather be paying.