>In reality I need to go to an exchange, convert to bitcoin, then go back to either the same exchange or a different exchange and convert from bitcoin, all in a

>In reality I need to go to an exchange, convert to bitcoin, then go back to either the same exchange or a different exchange and convert from bitcoin, all in all I've gone through two intermediaries and paid two fees. The intermediaries are domestic exchanges in this case, meaning only domestic transfers of fiat need to be made. The international transfer occurs through Bitcoin. Fees for large Bitcoin exchanges range from 0.25% (Bitstamp) to 0.38% (BTCChina). Coinbase currently has no fees, but it's a temporary promotion. That means it's less than 0.8% in trading fees altogether, when using major exchanges. Assuming Bitcoin becomes a little more widely adopted, this situation will only get better. I think the real opportunity is in the back end of the financial system. Banks can begin to use Bitcoin for international wire transfers, while enjoying much lower trading fees than retail clients when converting into and out of fiat currencies.