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728 sats \ 11 replies \ @aljaz 1 Jan \ on: The Taboo Against P2P Liquidity Providers Must End bitcoin
you are spot on.
the problematic part is the fiat part for all these p2p exchanges, you can't just run tons of random tx from various people through personal accounts without raising lots of flags quickly. Occasional transactions are not a problem, but doing this to some scale where it makes sense you'd need a network of people to process all of that. Given the nature of how these operate its fairly risky and leaves the market maker with a large logistical nightmare that costs a lot both in terms of risk and actual funds being frozen.
and in case you prefer not to expose yourself but want to use other people's accounts and compensate them for it then you're in the typical territory of nigerian princes, finding willing people to "lend" you their bank accounts which is another nightmare you don't want to deal with.
You do not need a bank account to use robosats or bisq. Money orders and cash by mail are perfectly serviceable options and both let you use the service in volumes of tens of thousands of dollars per transaction with no risk of a closed bank account. There are other risks, though.
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Sadly, using cash by mail is exactly how some people get "caught" a running an "Unlicensed Cryptocurrency Business."
That's what Jayton told me likely happened. He sent cash to a man in California from North Carolina who was somehow involved in meth drug trade and they followed the money back to Jayton.
Jayton had his home raided by a FBI and IRS dual taskforce! They siezed all of his assets, gold, silver, cash and bitcoin that they could find. He told me he had good encryption and backups on his computers so I hope they didn't get too much bitcoin.
Thankfully, Jayton was recently released from prison but it definitely made me think twice about P2P trading in the USA.
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Yeah for small amounts there are good P2P options, but Bitcoin probably needs waaay more adoption before we get to larger amounts.
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people to "lend" you their bank accounts
hahahaha I used that method with Bistamp some years ago, using my grandma's bank account.
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Yes. Actually doing this in a secure way is a difficult undertaking.
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strictly legally speaking i don't think there is any jurisdiction where you could feasibly do this. there might be some who will not give you too much shit about it but you're unlikely to be able to get decent enough fiat rails to make sense
there is of course way to incentivize better liquidity on those exchanges, specially since some of them provide api access and you can build an aggregator and essentially notify ppl where the demand is and if the price is right they might be willing to do be a one of market maker. its far from efficient operation but maybe crowdfunding liquidity on p2p exchanges is the real defi
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notify ppl where the demand is and if the price is right they might be willing to do be a one of market maker
Cool idea. I think boltz swap just implemented something similar, where you can get rewarded in sats by swapping depending on liquidity. It makes sense.
Russian p2p market volume is $41b in 2024 https://www.rbc.ru/crypto/news/665066579a794764c51aa31f
p2p starts to work when you have a business demand, not a bunch of geeks caring about their privacy.
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Uhh I may be reading this wrong (using Google translate), but this lumps p2p volumes in with other forms of trading
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