Hacker News new | ask | show | jobs
by CrunchyJams 4567 days ago
You're double counting the yuan fees and ignoring the bitcoin fees. The exchange makes 0.3% on the 340,000 XBT (1,020 XBT, or about 625,000 USD) and 0.3% on the 1.25 billion yuan it was traded for (3.75 million yuan / 615,000 USD). The buyer and seller each only pay fees on one side of the trade in the currency they obtained in the transaction.

edit: That's why the section you quote only has around half of the figure shown in the headline.
1 comments
minimax 4567 days ago
Yes you're right. I misread that section. That is an interesting way of collecting fees. It still works out to 60bps per trade just half is in currency and half is in bitcoin (which I guess they then convert to currency).

I don't think that invalidates any of what I said about exchange revenues as a fraction of transaction value for bitcoin as a payment technology though.

link