localbitcoins is NOT the best option - an opinion + a longer term view to reduce cost

I was reading a thread where a poster stated;

That's why LBC is the best option

Is it really?

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And this is the smallest spread I have seen in weeks. LBC is expensive because it is dirty money. It should only be used when you got some of that dirty money.

This is NOT an LBC bash! They serve the purpose and help our markets run. Also, it is supply and demand. When vendors need to cash out a bunch of Btc to fiat, in theory, the premium should go down. When there are shit loads of buyers the premium will go up. So it's really mostly desperate buyers who can't or won't deal with the major exchanges' kyc rules that drive the premium to sometimes as high as 20%+. It is at those times that a handful of sellers get greedy and don't relax the price when the demand starts to soften. Ridiculous premiums force people to look at circle, libertyx, mail cash etc. Eventually the LBC contracts slow to a trickle and sellers lower their prices because they need some fiat.

That's where we are now. You can watch the entire process lather, rinse and repeat 2-3 times each month.

The only way to break this greed cycle, which will have a flattening effect of prices is to only use LBC when you have dirty dough or there are absolutely NO OTHER ways for you to get Btc. We need to use companies like libertyx at every opportunity! But we should not really discuss it on this sub.

I don't have numbers to bear the following out -> I speculate that every 1 percentage of buyer flight would result in 1% or more discount to the premium. e.g. If we used LBC 20% less then the premium drops by 20% - of course this would have to be sustained more than a day or two for the sellers to understand that the slow business is not just a blip.

I have a vendor buddy that is righteous as shit. Old time weed and shroom dealer. When he needs a bunch of fiat when premiums are high he feels AWFUL that he is sticking it to buyers. I have known for him to be late on an obligation with close friend because he knows the friend will wait and he feels like he is "part of the problem" making 21% on his money laundering needs. He is from the old school where he PAID 20% to wash it.

btw, LBC the site, while its owners may also be Btc sellers, have nothing to do with pricing. They simply take a cut. The prices are purely market driven. That's why you don't need to give any ID there. They are not buying and selling any Btc and thus are not a money service subject to kyc obligations. So again, I'm not shitting on LBC. They are friends of the markets.


Comments


[24 Points] Pelican_Vendor:

Honestly 7-15% fee to get clean money aint bad.


[14 Points] None:

[deleted]


[6 Points] economicsbro420:

It's nothing to do with greed, it's pure supply and demand

You are paying the guy 5-15% because he always has coins/cash when you need it, and he is also risking getting robbed or arrested

It's one of the purest supply/demand markets you can find. Price fixing on LBC is pretty much impossible because there is no startup cost or barrier to entry for anyone to post ads on LBC


[2 Points] ravendarkh0lme:

Man up and buy coins in bulk for cheap. I bought 10 coins for 3,600 or something like that.

Edit: looking back I paid 3,800 but you get the point


[1 Points] LongLiveThe_King:

Nice username.


[1 Points] nahko_vendor:

When you buy from LBC you are potentially helping vendors be more liquid. I think what you said has a lot to do with where you are geographically and not necessarily representative of all LBC markets.


[1 Points] lordredvampire:

You can use exchanged.i2p - darknet market exchange. No fees (except dispute fee and $1.00 withdrawal fee). Enjoy.


[1 Points] None:

To the contrary, I have used LBC in the past, for small orders and had no problems yet. Emphasis on small orders. It is a bitch to try to find someone who will do a trade at the exchange rate one desires or can afford. But it does work.

I'd venture to say that some consider LBC the best coin vending site simply for how easy it is to use. It's not like the other sites where you gotta include a picture of your photo ID, your face and perhaps even a dick pic or vag flash. If I ever end up having to use one of those said sites, I will probably include a picture of some man titty just cuz. But I don't actually plan on making such large purchases from the DNMs really. Would be nice, I suppose but eh...I'd rather get my raw in person. Good times happen, more than likely. I live for the good times lol

Edit: the prices for a zip of chronic? Dude...I'd have some left over from a festival at that...can't beat it. The prices that is. I beat my dick like it owes me money. Still broke...I must be doing it wrong...


[1 Points] madisonrebel:

This guy I know has been using Coinbase for years on a regular basis. They just upped his daily buy limit again. If you're just a customer it's fine.


[1 Points] None:

I started using cashtocrypto.com; they always deposited 8pm that night, and prices are consistently cheaper than most other vendors i found.


[1 Points] trustmeim18:

I tried to use LibertyX but holy shit, the people where I live cannot make it work. I had to use the POS to put in the order both times I managed to use it. It is aggravating.

LBC has given me really good rates, one guy I buy from it's like 4%~ which isn't honestly that bad.


[1 Points] wandathemagician:

Localbitcoins is the best option for us who need to use western union or monyegram to get bitcoins. That's due to my location.


[1 Points] I_Love_OG:

pff, LBC all day my friend


[1 Points] weedweedyeah:

an extra $30 to stay anonymous and purchase bulk btc doesn't bug me at all. plus I always get it within 10 mins


[1 Points] None:

Why not use mycellium? I use it all the time and it's a much smaller mark up than lbc


[1 Points] HOTBOYTRUMPSUPPORTER:

Hey, new here and this seems like a decent thread to ask; are Bitcoin ATMs a good route to go (assuming I also tumblr and use multiple wallets)? Also do I have to worry abut creating wallet accounts in tails/tor? Thanks for the help