Consumers all over the world are struggling with the concept of buying Bitcoin in a convenient manner, and the limited availability of exchanges in particular regions is only making matters worse. This is all part of the reason real peer-to-peer exchange platforms are so direly needed in the world of Bitcoin and digital currency.
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Centralized Bitcoin Exchanges Are A Real Issue
Even though most Bitcoin users are well aware of the risks associated with centralized digital currency exchanges, they remain one of the most popular ways to get access to Bitcoin for everyday consumers. But at the same time, these platforms make it harder for individuals to get involved in digital currency as well.
Various exchanges are struggling with making their service available to consumers all over the world. That is only normal, as every country has its own set of rules for money transmitters. Despite peer-to-peer marketplaces being available on a large scale as well, consumers are not flocking to these solutions just yet.
People have to understand centralized Bitcoin exchanges will have a hard time to gain global traction. Expanding to different countries is a good thing, but that doesn’t change the fact these companies will control user funds. After all, that is what a money transmitter does, as they make it possible for consumers to deposit and withdraw funds monitored by the centralized exchange at all times.
Circumventing this issue is relatively easy, as peer-to-peer marketplaces have been around for quite some time. LocalBitcoins, for example, is one of the most popular choices for this type of trading activity. However, even they have been forced to shut down services in Germany last year due to regulatory issues. Even though LocalBitcoins is not a money transmitter, Bitcoin regulation is a gray area that no one wants to get in trouble with right now.
In the end, it is up to individual users to find the best solution to buy and sell Bitcoin in their region. Peer-to-peer trades should be the number one priority, but it could end up being less convenient than signing up for an exchange platform and verifying one’s identity. As long as consumers keep empowering centralized Bitcoin exchange,s it will be difficult for digital currency to gain global traction.
Source: Reddit
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