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With BTC you would need to pay transaction fees, and in practice, anonymization fees (e.g. for mixing services, tunneling through a private cryptocurrency) for
by vinay427 6y ago
With BTC you would need to pay transaction fees, and in practice, anonymization fees (e.g. for mixing services, tunneling through a private cryptocurrency) for many transactions. These would amount to far more than inflation for USD, EUR, etc.
- Tenoke 6y agoSwitching to monero would incur you, what? 0.1% fee total even when you add all the transaction fees? Doesn't seem like much of a problem.
- toss1 6y agoSure, at small scale, not much of a problem. But start moving $$millions, and you'll simultaneously move the market, paying more as you buy and receiving less as you sell. There is no such thing as a free lunch.
- vinay427 6y agoThe problem isn't just the transaction fees but markups by exchanges (BTC -> XMR, XMR -> BTC) that each take a cut. Last time I calculated this, even after shopping around for cheaper exchanges it was well over 1% in total fees and probably something closer to 3%, but I'll have to double-check.
- Tenoke 6y agoWhy would you buy BTC at all in this scenario? If you are going to an exchange you can just buy fiat-XMR and XMR-fiat. Deposit money to Binance, covert to XMR, withdraw XMR is well under 0.1% total in fees.
- vinay427 6y agoI wouldn't. As you mentioned, I would just find an exchange that supports fiat <-> XMR. I'm just responding to the top-level comment that specifically referred to Bitcoin as the preferred currency for these transactions.
- fomine3 6y agoI'm beginner, but if both ExchangeA and ExchangeB is investigated by law enforcement, ExA knows sent address and ExB knows received address. So it's not perfect unless you add intermediate private XMR wallet between A and B, isn't it?