Mt. Gox Drops Below 50% of Bitcoin Volume as Competitors Offer Lower Rates, More Features

The Bitcoin marketplace appears to be adjusting to the ongoing above-market rates for Bitcoin at the Mt. Gox exchange, as the Bitcoin Examiner’s Maria Santos reports that Mt. Gox’s market share has fallen to 49.71 percent over the past week, citing data at Bitcoinity.org. The price of Bitcoin is currently $102.64 at Mt. Gox, while competing exchanges are offering it for $93 to $94. The second largest exchange in trading volume, Bitstamp, actually traded a greater US dollar volume of Bitcoin on Friday, observed a reddit commenter.

However, Mt. Gox still had nearly double the Bitcoin volume of Bitstamp, since it trades Bitcoin in fifteen currencies rather than only with the U.S. dollar, which is the case at Bitstamp. Recently Bitstamp has improved its identity verification and security systems with GBGroup’s technology, noted Santos, which likely helped in capturing 27.17 percent of the market over the past week. Mt. Gox sent another missive to assuage customer concerns last week, and it also noted a new relationship with Akamai, which it claimed would provide far greater site reliability by being hosted on servers all over the world. Furthermore, Mt. Gox is currently bench-testing a new trade engine at 500,000 trades per second, though it claims the new Midas trade engine is capable of much more than that.

After recently offering instantaneous transactions to Level Two-verified customers, Coinbase has released another innovative feature of zero-fee transactions of under 0.01 BTC, which is worth around one U.S. dollar at current rates, Coindesk reports. These micro transactions, also referred to as “dust”, can avoid transaction fees by occurring off the blockchain– that is, the transactions will only exist internally within Coinbase– and thus incur the transaction fee set by miners only when 0.1 BTC or more is withdrawn or transferred.

In another sign of growing interest in Bitcoin, Bloomberg terminals are currently featuring Bitcoin under the XBT ticker, according to BTCGeek, though the data feed linked to the new ticker is only available in a testing mode. By simply inputing {XBT Crncy<GO>}, the pricey terminal users could pull data from Mt. Gox and from Tradehill, a large-order exchange which interestingly quotes Bitcoin as a $1,000s/Bitcoin rate instead of the more commonly seen $/Bitcoin.

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