If you have ever sold Bitcoin, then the likelihood is that you have used an exchange to deposit the money into your bank account. There is another, more personal way to sell your Bitcoin though. If you sell your Bitcoin for cash, you can meet the person you are selling them to and build a network of like-minded people.
Sell Bitcoin for cash – try localbitcoins.com
The most common website used to sell your Bitcoin for cash is localbitcoins.com. Through this website, you can see the variety of people looking to sell or buy. Once you have signed up, you can see what offers are on the table. As this is more of a peer-to-peer exchange, there are also some risks. To begin with, you might not really know exactly who you are dealing with and how serious they are. This can then lead to not only wasting your own time, but it increases the risk of succumbing to scams. To counteract this, localbitcoins.com has incorporated a rating system much like that of a seller on eBay whereby you can see not only their seller rating, but also how many transactions they have completed.
Another issue that is prevalent with this method is that the fees can be slightly high. This is due in part to the added privacy and unique nature of the way localbitcoins.com operates. The site does have many positives though. Firstly, it is one of the most private ways to purchase Bitcoin. For some nations, it is the only way to buy Bitcoins, and the service provides many different payment methods. Of course, if you are going to be trading extremely high amounts, then you can expect the buyer or seller to request further compliancy details such as KYC and AML to protect themselves.
Alternatively, try a Bitcoin ATM
If localbitcoins.com isn’t for you, another option is to sell your Bitcoins at an ATM. There are a few issues with this process though. The first one is finding an ATM that provides this service, and the second is the issues over fees. Generally, Bitcoin ATMs operate with substantial fees, so this may not be the best option if you are looking for the best bang for your buck.
The movement to electronic payments and reduction of cash
In recent years, much of the population in the UK has begun the move to electronic payments. Instead of cash being our go-to choice of barter, we use our debit or credit cards. Younger generations have been the driving force behind this, and this has led some economists into arguing that the government is attempting to remove – or at the very least minimise – cash within the economic system.
Many of the arguments against cash were the same arguments used against Bitcoin initially. Cash itself is extremely hard to follow as it leaves no trace from person to person. This allows it to be used for nefarious and sometimes illegal means. As a government, an ideal situation would be one whereby you can trace and follow every transaction. This would allow for better tax records as well as the possibility to snoop. Such examples might sound extreme, but China has evidenced how such a system can be used with their social credit scoring system.
Some argue the removal of cash from society is beneficial to governments, which is precisely why some citizens are attempting to resist it. It should be noted that this is a particularly Western phenomenon though. In much of the Global South, cash remains king as many people still do not have access to the most basic of bank accounts.
Since the early days, the technology necessary to trace Bitcoin has improved dramatically. As Bitcoin was never anonymous to begin with, the idea that it can be used for tax evasion, blackmail, or illegal activity is becoming much more difficult. In theory, the Bitcoin blockchain could be extremely useful for tracing the movement of money throughout the world were it ever to become mainstream.
This is why many Bitcoiners and cryptocurrency enthusiasts still like to use cash. The other alternative to cash is to use privacy coins such as Monero or Zcash. Whilst both these cryptocurrencies are still relatively small in comparison to Bitcoin, it remains to be seen how the governments of the world would react if they caught on in popularity.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.