Bitcoin-Focused Social Networks Increasingly Take Over from Established Exchanges

Bitcoin has had its ups and downs, but things now seem to be looking better than ever. While there are still some serious, justified concerns about how the top crypto-currency will scale to accommodate steadily rising transaction volumes, there are also at least a couple of highly regarded proposals for solving all the associated problems. On the other hand, some are still inclined to worry about the state of the exchanges that have traditionally enabled the conversion of everyday, conventional cash into Bitcoin and vice versa. With so many of these exchanges having run into problems of their own along the way, some have pointed to the need for less centralized ways of handling these important tasks.

There is plenty of reason to be optimistic about issues of this general kind, as well. Bitcoin exchanges that operate much like traditional ones which handle equities or commodities inevitably have to grapple with a great deal of red tape. While that can sometimes contribute to feelings of security among users, the actual history in this area does not necessarily inspire so much confidence. By being forced to handle and hold large quantities of Bitcoin and conventional currencies themselves, traditional exchanges have opened themselves and their users up to a great many vulnerabilities and problems.

Another approach that seems, to many, to be better suited to the inherently decentralized nature of Bitcoin is starting to gain some steam. Instead of having a monolithic, centralized exchange convert dollars into Bitcoin and vice versa, services of this newer kind merely serve as matchmakers. By helping those looking to buy Bitcoin find sellers who are ready to transact, they allow for quick, easy conversion in an entirely novel way.

As a result, many are finding this different approach to be a superior one. Those who buy bitcoin at or a similar service today will typically not need to worry about all the kinds of issues that have affected major exchanges like MtGox and others. By dealing directly with other individuals who have Bitcoin of their own to offer, buyers can count on receiving what they paid for without being exposed to insecurity thereafter. That is starting to seem to many like the best possible solution to a problem that has cropped up in the community too many times in the past.


Categories: Financial