You're confusing "competing" and "security". The RMAH isn't meant to compete, it's made as a legit and safe medium for the same transactions that will always exist. I can always buy my fruit and veggies for cheaper from the man in the van on the side of the road, but the risk is higher for countless reasons. You don't go to the grocery store because it's cheaper, you go because it's safer.Quote from RiarWasn't the idea with RMAH to discourage people from buying gold from these dodgy websites? Seems like they now indirectly encouraging it.
Yes, some people have had safe transactions with these websites, but just because someone came back from Africa without Malaria doesn't mean the next person won't.