Thread: Ethereum
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Old 12th October 2021, 11:04     #897
Ab
A mariachi ogre snorkel
 
Say someone puts $10 in my NZ bank and I want to use that money here in Australia. Previously I would have had to order a telegraphic transfer between my nz bank and my au bank, so I’d have to call a branch in Nz and talk to a bank manager and get told that there’ll be a $100 fee for moving my $10 and it might take 5 working days.

Now I log into a nz crypto exchange and buy $10 of XLM and it shows up in my XLM wallet. Then I log into an au crypto exchange and I buy AUD with the XLM that’s in my XLM wallet and I transfer the AUD to my au bank and now I have it. Time elapsed, maybe 60 seconds. Maybe 2mins. Costs: let’s be extravagant and say a huge 1% of the transactions at each end, so… 20 cents. Perhaps the difference between buy price and sell price eats another 10 cents. End result: I have $9.70 in my pocket in 60 seconds, instead of nothing at all because who’d pay $100 and 5 days to move $10?
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