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Re:$4.1m goes missing as Chinese bitcoin trading platform GB... by dragontamer on Monday November 11, 2013 @11:23PM (#6715833)
How do you exactly expect to convert your current dollars into BTCs without an exchange?

Also, exchanges are natural monopolies. The more people that go to a particular exchange increases the network effect of an exchange. More people == faster trades, faster trades == more fair prices.

Exchanges will centralize because the economics and network effects of exchanges demand centralization.

Re:$4.1m goes missing as Chinese bitcoin trading platform GB... by biafra on Tuesday November 12, 2013 @02:59AM (#6716415)
I bought my Bitcoins at the BXB (Bitcoin Exchange Berlin: http://www.bitcoin-exchange-berlin.com/p/was-ist-die-bxb.htm...) where I met the seller in person for a long enough time so he could not run with my money. You should organize a Bitcoin Exchange in your city.
Re:$4.1m goes missing as Chinese bitcoin trading platform GB... by dragontamer on Tuesday November 12, 2013 @12:43PM (#6719332)
I am well aware of local exchanges. But you know, there is this thing called "the internet", which ought to allow me to trade BTC with anyone in the world.

With a local exchange, you get the best price for BTC in your city. With an internet-exchange, you automatically get the best price for BTC in the world... INSTANTLY, without having to schedule a meetup.

The more BTC exchanges converge, the better things will be overall. Trades will execute faster, at a lower cost, with maximum convenience with maximum fairness. It is damn near impossible to settle on a price without an exchange.

Its simply a matter of which BTC exchange will be trustworthy enough to hold the title of "defacto exchange of the entire internet".

Re:$4.1m goes missing as Chinese bitcoin trading platform GB... by waterlesscloud on Monday November 11, 2013 @11:40PM (#6715871)
The exchange market is currently in the process of decentralizing.

Counterintuitive, perhaps, but it's happening.

Re:$4.1m goes missing as Chinese bitcoin trading platform GB... by dragontamer on Tuesday November 12, 2013 @12:28AM (#6716033)
It sure is, because Mt. Gox messed things up with their customers. Mt. Gox WAS the central exchange for some time, but they have squandered their position.

Anyway, the forces of physics can be resisted: A thrown ball goes against the flow of gravity, and even Airplanes and Birds can fly for extended periods of time. But in the long term... almost everything follows gravity in the long term.

Similarly, centralizing market forces (in particular: the formation of "natural monopolies") are a known and documented phenomenon. But in the long term, the BTC Market gains more benefits from centralizing... than decentralizing.