Despite Bitcoin being associated with nefarious activities and often being dubbed as “magic internet money”, there is a vast interest in people who want to obtain a piece of this digital currency. Overall Bitcoin trading volume has been increasing over the past year or so, and peer-to-peer marketplaces such as LocalBitcoins have seen a tremendous growth in volume as of late.
LocalBitcoins – Peer-to-peer Bitcoin Trading On The Rise
Exchanging Bitcoin to and from local fiat currency can be done in multiple ways. Due to Bitcoin’s decentralized nature, there is no need to rely on exchange platforms to complete trades, even though their engines match buy and sell orders automatically. Proper Bitcoin exchanges are a luxury and a convenience, but not a necessity.
Creating a marketplace where you can interact with buyers and sellers directly is one of the ideas Satoshi Nakamoto had in mind when the world was introduced to Bitcoin. Cutting out the middleman in our daily financial lives is a possibility, and sometimes even a necessity. It only makes sense to trade this disruptive digital currency in a way that does not involve middlemen.
And platforms such as LocalBitcoins – which is a peer-to-peer marketplace connecting buyers and sellers – have been doing quite well in recent months. Having a way to be in touch with the person you are dealing with directly is a vastly different experience from using a regular Bitcoin exchange. However, it also depends on whether or not you value your privacy and/or want to remain anonymous when conducting a Bitcoin trade.
Which brings us to one of Bitcoin’s most beautiful aspects: it can cater to anyone in the world and can be adapted to suit your personal needs and preferences. Do you value anonymity – up to a certain extent – when dealing with finances? Bitcoin can help you. Do you want to experience the free market and peer-to-peer trading? That is possible as well.
New Weekly Volume Records in The US
It should come as no surprise that LocalBitcoins is doing exceptionally well in countries where Bitcoin regulation is still being worked on. The United States is a different breed in that regard, as there may be various types of Bitcoin regulations depending on which state you are residing in. But that is not keeping enthusiasts from buying and selling BTC either.
Last week was a pretty interesting week in terms of trading volume on LocalBitcoins US. Even though the trading volume has been slowly going up or holding steady – ever since May of 2013, a new record was set over the previous seven days. No less than US$4.8million worth of BTC was traded during that week alone, in the United States. Quite an impressive amount for a peer-to-peer marketplace to say the least.
What remains a bit of a mystery is where this sudden spike in trading volume is coming from. Especially when you consider that Bitcoin trading volume across major exchanges has been rather low for over a week now. Granted, some of this can be attributed to trading bots becoming less active during periods of little-to-no Bitcoin price volatility, but that does not tell the whole story.
What are your thoughts on LocalBitcoins and its increased trading volume? Leave a comment below!
Images courtesy of LocalBitcoins, BitcoinCharts, Shutterstock