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|User Info||Bitscam And Other Extraordinary Insanities; entered at 2017-12-06 14:59:36|
BTC advocates claim they are competing against the likes of Visa and other financial institutions and have lauded the (artificially low) transaction fees as a sign of success.
Except it's not. Visa and M/C's interbank fees (the actual base cost of clearing, not what the bank charges a merchant) is measured in basis points. Let me know when BTC clearing costs end-to-end (including exchange back to dollars, euros or whatever) gets anywhere near that.
Incidentally that's one of the "foldback" risks -- the embedded costs in transactions through the entire system, including the fees at places like Coinbase for exchange, only "work" so long as the price is going up at a parabolic rate. When that stops suddenly the "medium of exchange" element disappears since there's a ~4% per-transaction cost that magically eats all your capital.....