Subnostr

The basis of otc bitcoin is the average price between exchanges. Different exchanges have different prices in different countries. The best way to understand price summation is to look at the kimchi special. The price of bitcoin in Korea was much lower than in the United States because bitcoin was illegal to buy in America, Which resulted in people taking their dollars to Korea to buy bitcoin. After bitcoin was legal to buy in the US, The price averaged out, And the kimchi special disappeared. This is how Sam Bankman-Fried founded FTX. OTC price is just an average between exchanges. You can still buy on peer to peer boards like Bisq. You could offer someone cash to get bitcoin. The examples of how to acquire bitcoin are endless.

no₿ody™ 🧱 2y ago

I appreciate the response but not sure it’s what i was looking for. Also not sure what i’m looking for 😂

I actually knew all that about kimchi premium etc. but i thought OTC was whatever the two parties wanted as far as price which doesn’t necessarily have any direct relation to or impact on prices from exchanges?

Reply to this note

Please Login to reply.

Discussion

Theory of Everything 2y ago

Maybe I am confused about OTC? Bisq sounds more like what you are trying to describe here. On Bisq people list their price for as much bitcoin as they want to sell. This is to avoid KYC AML usually when people do not want to go through the legal rigamarole of a financial services platform.

no₿ody™ 🧱 2y ago

OTC or Over the Counter to my understanding is large quantities being sold “off market” usually between institutions or exchanges and miners. Not the same as p2p but somewhat similar i guess

Theory of Everything 2y ago

Ah. Are you looking to buy bitcoin to start your own exchange?

no₿ody™ 🧱 2y ago

Just general curiosity, i have no problem buying bitcoin and am not looking to start an exchange