Using Bitcoin is not eliminating fees — unless exchanges are no longer required

Disclaimer: I’m not expert/investor in Bitcoin. I see Bitcoin as a great opportunity and great replacement for traditional money. Want to know more about Bitcoin? Pay this a visit: http://www.reddit.com/r/bitcoin Recently more and more people talk about Bitcoin: Very convenient, fast, low fees, etc. Sounds fun, and it’s true, if you only consider Bitcoin transactions alone. By design, it’s very fast, irreversible, secure, completely verifiable and very low fees. However, let’s consider several scenario to see if it’s really true: 1. Online Purchases With credit/debit cards, you don’t have to pay any processing fee. Merchants are the ones who pay processing fee to payment network. With Bitcoin, no matter small or large transactions, you will be the one who pay fees. 2. Money Transfer (Domestic) Almost all banks in US (and probably EU) have zero money transfer fee. For example, you can pay anyone without fee using Chase QuickPay, Wells Fargo SurePay, … With Bitcoin, as title said, unless exchanges are no longer required, for instance Coinbase, you have to pay 1% + 0.15 USD to convert money to Bitcoin, 0.1 mBTC for transfer, 1% + 0.15 USD to convert Bitcoin back into money. So total is 2% + 0.3 USD + 0.1 mBTC. Pretty much! 3. Money Transfer (International) International Money Transfer is a picky case. Most banks, payment transfer service like MoneyGram or Western Union charge a huge amount of fee. Processing time is from instant to 2-3 business days. Think Bitcoin transaction is free? You bet. I’ve seen many posts on Reddit with something like: “I’ve seen half a million to my friends around the globe. With 0.1 mBTC fee. Instant.” However, only 1/3 of this sentence is true, unless exchanges are no longer required. Yes, with Bitcoin, you can send virtually unlimited amount of money to