Many people use LocalBitcoins for many reasons, but lately its volume has increased a lot. This, of course, brings up the question of what it means for Bitcoin. Is Bitcoin going mainstream, are people stocking up for a coming increase, or is LocalBitcoins one of…
Is Bitcoin going mainstream, are people stocking up for a coming increase, or is LocalBitcoins one of the more convenient places to sell bitcoins these days? It’s hard to tell if any, or all of these are the case. Indeed, LocalBitcoins is one of the fastest ways to get it done. After three confirmations, if you find a buyer, you complete your transaction and you have your money.
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Unless you set up an actual, local trade for cash, which can take longer. Those can be more profitable, as can certain online payment forms. There have been cases of mysterious and bad things happening via LocalBitcoins, and occasionally you see LocalBitcoins accounts for sale on places like BitcoinTalk. That is why you have to be careful and vigilant whenever selling your bitcoins, no matter the platform, as they have all failed from time to time.
The truth is that the chances of LocalBitcoins being a source of mainstream revenue for Bitcoin is unlikely. The people who use LocalBitcoins are not generally newcomers to the currency. Thus we can assume that the upswing in trading there is a signal of things to come in the larger markets. In fact, some people take the coins off the markets and go and trade on larger markets, then return and sell them, and things of that nature.
The prices on LocalBitcoins can be interesting, as well. In some cases, buyers are paying more than the market rate, at all times. This leads one to wonder why they want to do this, but if they are doing it in ways that are as irreversible as sending in Bitcoin, then it shouldn’t matter. However, if there is more volume on LocalBitcoins than other exchanges, its prices should be taken into consideration when considering the overall value of Bitcoin. Including those higher paying buyers, their prices should also be considered. Especially if their buying represents a percentage of the overall market.
People have been physically hurt trying to use LocalBitcoins, so always take your personal safety into consideration. It’s actually best not to meet anyone, if you can avoid it, when buying or selling bitcoins. Unless you’re going to a Bitcoin meet-up or something, it’s better to do the whole transaction in a way that doesn’t require you to meet the buyer or seller.
Images from Pixabay.
Last modified: January 25, 2020 11:08 PM UTC