Let’s Recap How Might A How Large Scale Purchase Or Sell Of Bitcoin For Cash Might Look Like
How Large Scale Cash For Bitcoin Deal Proceeds
Bitcoin has turned into digital gold especially for those who invested in it early. The craze for the digital asset is at an all-time high and with the recent upwards price rally, the demand for the currency is also on the rise. A full-time Bitcoin trader EZ has engrossed Bitcoin in his life and usually buy and sell the digital asset to the community in exchange of cash.
AJ is a British Bitcoin miner who loves privacy and Bitcoin, the two strangers AJ and EZ have decided on to conduct a deal worth $20 k and we would observe the deal to understand how Bitcoin for Cash or vice versa deals commences.
EZ who is a trader, buying BTC is like his daily routine while AJ being a miner has never made such a high cash deal earlier in life. The deal has been set for 5 BTC where EZ is asking for a 5% lower price than the current value at coinbase. On the day of the deal, EZ messages AJ to lower his rate to 6-7%, to which AJ replies that even at 5% he is taking the hit. Both the parties agreed to meet at a common public place, where both EZ and AJ have to travel for 5 hours.
How The Deal Panned Out
Both AJ and EZ has done enough background checks and talked several times on the phone before the actual deal. AJ who was offering his 5 BTC for $20k had transferred 5 BTC to two freshly created wallet and also backing it up to ensure the safety. AJ also thought of buying a UV detector pen to check if the currencies being hand over to him are not counterfeit. However, the local store has run out of the device and he had to be solely dependent on his eyes to detect any malpractice.
“The deal would have to be pushed through in one go. This would be quicker and easier, but it entailed more risk.”
The deal has been established that AJ would first transact 2 BTC to EZ's wallet and once the trust between the two parties has been established both would meet at the same spot an hour later to complete the rest of the deal. The deal was panned out that way so that neither EZ has to come with all of $20k and nor AJ has to keep all his 5 BTC in a single wallet.
However, EZ was late for the deal by an hour and the location they have chosen was a bar which would be shut within an hour, thus the two-phase plan does not look promising and they might have to commence the deal in one go, but it attracted a lot of risks.
The bar chosen by AJ was located in a quite a posh area with a 5-star hotel just nearby, thus AJ thought the place would not attract unnecessary attention from nonconcerned, and another reason for the choice was that AJ knew the bartender who would have given an extra sense of protection to AJ.
The Final Deal
EZ messaged AJ to describe himself as soon as he arrived outside the bar. AJ and EZ both sat down on their spot and the deal begun with EZ taking two phones out of this pocket and for the next 45 minutes both of them worked around the technical aspect of the deal. When AJ showed his wallet containing 2 BTC, EZ explained that the address to which the coins will be sent to does not belong to him, but a friend who would call him back to confirm the transaction.
After AJ started the transaction of the first two Bitcoin, EZ took out the first bundle of cash worth 5000 Euros. What looked like a blind date earlier has started to look more like a drug deal, but it was completely legal.
However, the transaction from AJ side was stuck for a good 45 minutes since the next block on the network was set to be verified and it created a little bit of anxiety for EZ, eventually, both the transactions got confirmed and both the gentlemen blew a sigh of relief. AJ got the rest of the money as soon as the transactions confirmed, both the parties shook hands and went their separate ways.
Aj was relieved that the biggest cash transaction in his life went without a hitch and now he has enough cash to take care of his daily needs and mining operations as well. However, he was slightly disappointed because of the fact that Bitcoin rose instantly after the deal.