Dear Entrepreneurs: Canada’s Bitcoin Exchange Market Needs More Competition

The Bitcoin exchange market in this country is entirely centralized. Our market leader does 90% of volume and is overly comfortable in their position for the quality provided. There has been next to no innovation for as long as I can remember. Canada has been left in the dust.

We need more competition to force the industry forward. What happens if QCX fails? Our only other option is a CAD book at an American exchange with a poor reputation for execution reliability. Further, they do not afford the conveniences provided by Canadian banked companies, nor do they pay taxes here, or support our local economy.

It’s time for new, made in Canada Bitcoin exchanges. For the amount of interest and smart people in this country, we should be full of innovation. We should be far more competitive on a global scale. Though we may never have a large percentage of global volume, we can do much better than this.

When presented with the options, who would do business in Canada and $BTCCAD other than to take advantage of inefficiencies in our pricing? Our conventional banking system has long been heralded as one of the best in the world, yet where is that intelligence in the Bitcoin industry?

The government has a progressive view and has afforded a window to be at the cutting edge. It’s up to entrepreneurs to make the most of it, and right now, we are squandering that opportunity.

We’re leaving it in the hands of QCX, who in my opinion, are just as likely to ruin it for everyone with a black swan event. When a market becomes this centralized, the risk becomes too great. We shouldn’t trust the future of Bitcoin in Canada in the hands of one exchange. We’re putting far too much faith in their leadership, which to date, has left much to be desired.

It’s time for made in Canada exchange competition to decentralize counterparty risk, and to disrupt our complacent market.

Do your thing entrepreneurs – make Canada Bitcoin great!

Originally published on Reddit.

 

Aurie Philipchuk

Bitcoin maximalist. Jack of all trades. Managing Partner @Tractai.

Interested in building the new generation of great companies? Let’s connect.

 

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