illustrating the benefits of nano by showing the immediate costs of buying on an exchange - similar to sending fiat internationally
I deposited to an exchange recently, and I wanted to provide an overview of all the fee's associated with using an exchange to buy crypto. I'm using Kraken in this example, but it should apply to most exchanges. I'm from a European country, and used a SWIFT transfer to deposit USD.
USD bank account monthly charge: 1.35 $
converting my local currency to USD: 3.1%
deposit to exchange: 5.5%
buying crypto on the exchange: 0.16% (taker fee, lowest tier, realistic for retail investors)
withdrawing Nano from the exchange: 0.05 𝑁
open USD account in person: 30 minutes to several hours (first time only)
convert local fiat into USD: 5 minutes
deposit to exchange: 5 minutes
funds confirmed in exchange: 1-5 business days
market order to fill: instant
withdrawing Nano: few minutes
total: couple of hours to several days
using the legacy financial system costs you around 10% to get money onto an exchange, it would be a similar amount for someone wanting to realise profits in fiat, or someone just sending or receiving money internationally since the exchange costs are negligible
in addition to the costs, it takes a long time, and for most people it requires physically going to a bank
on top of this it is quite complex to use aswell as being prone to error
this is just showing the use of central bank issued currencies in terms of their medium of exchange use case, which in my opinion leaves a lot to be desired
they are also not a great store of value, since their inflationary nature incentivizes holders to spend or invest it as soon as possible
so are they a unit of account? how can prices can be discovered, if the money supply is something you need to be an economist to understand, and it can change rapidly based on policy
Nano is instant, free and has no inflation!
ps. the comparison to nano isn't 100% fair since cryptoc...