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A Forex trade is still taking place so there must be a counterparty. The USD don't just disappear and reappear as EUR. Someone is buying them on the other side.
by robjan 6y ago
A Forex trade is still taking place so there must be a counterparty. The USD don't just disappear and reappear as EUR. Someone is buying them on the other side. Getting a better rate implies the counterparty getting a worse rate.
- _iswk 6y agoI'm not sure I understand your criticism. The USD is used to buy BTC. The BTC is then sold for EUR. There's no Forex trade, not directly at least.
- robjan 6y agoIf x EUR is worth y USD, any discount results in someone losing money or taking on Forex risk through some derivative product. It doesn't matter which settlement layer is used.