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It goes in both directions. If you are running low on USD at BitStamp, you just deposit money there (assuming deposits take an acceptable amount of time) and wi
by Aqueous 13y ago
It goes in both directions. If you are running low on USD at BitStamp, you just deposit money there (assuming deposits take an acceptable amount of time) and withdraw the same amount from Mt. Gox (which might take a while). You still made money. Are you looking for a never-ending money cycle?
You are creating a cyclical process of arbitrage. If arbitrage traders have large enough reserves they should be able to pretty consistently close the gaps, which means your opportunities will be few and far between anyway, giving you plenty of time to prepare.
When buying and selling BitCoin becomes more fluid, that is.
- wmf 13y agoThere's no cycle if you can't withdraw USD from MtGox at all.
- Aqueous 13y agoWell MtGox clearly has a problem with USD withdrawals, which is why this arbitrage opportunity exists in the first place and doesn't seem to be closing. If they fix the USD withdrawal problem, which I suspect they will do as they start to lose business to the other, better exchanges, expect arbitrage to obliterate the price difference between MtGox and other exchanges.