The Bitcoin price has gone through the wringer in Q1 of 2018. After reaching astronomical heights in 2017, the value plunged in the following three months. Even so, the demand for Bitcoin trading is not slowing down by any means. OTC trading is quickly growing in popularity, especially in Canada. It isn’t unlikely a similar trend will emerge in India over the next few months.
Canada’s OTC Trading is Spiking
There are many different ways to buy, sell, and trade Bitcoin. Using centralized exchanges is one way of doing so. People who prefer a peer-to-peer approach often flock to OTC trading platforms. LocalBitcoins is perhaps the best-known platform offering such functionality on a global basis. Buyers and sellers connect with one another in a direct manner to complete trades.
In Canada, it seems OTC trading is quickly gaining popularity. Just last week, the volume has spiked well beyond the regular volume. It seems a lot of people would rather not deal with exchanges directly. OTC trading is a more than viable alternative, as it offers a solution to exchange value in a different matter. Moreover, this form of trading can accommodate virtually any payment method buyers and sellers are willing to use.
— Nick Cote – Pizpie (@mBTCPizpie) April 8, 2018
There’s another reason why OTC trading is growing in popularity. With governments cracking down on cryptocurrency trading, consumers automatically look for alternative solutions. In an over-the-counter market, regulation is a non-issue, for the time being. Governments tend to exert rules upon centralized platforms, which is a bit more difficult where these OTC platforms are concerned. It is a positive intermediary step toward the use of completely decentralized exchange protocols.
An Interesting Trading Solution for India
Over in India, the regulatory situation has taken a bit of a dire turn. The Reserve Bank of India made it clear banks are expected to end support for cryptocurrency companies. Exchanges and trading solutions may find different ways to counter this solution, assuming the need arises to do so.
For consumers, OTC trading is an option worth exploring as well. With the demand for Bitcoin not slowing down, these “new” trading solutions will see more liquidity moving forward. That will ultimately lead to more trades taking place as well. It may even boost overall Bitcoin trading in India, although it is still too early to say for sure.
All of this further shows governments cannot curb Bitcoin trading in an effective manner. If centralized exchanges are no longer a convenient option, people will switch to OTC trading. In the future, we will see decentralized protocols take over, removing all middlemen completely. Cryptocurrency is here to stay, and enthusiasts will make certain that is effectively the case.
Image Courtesy of Shutterstock