Bitcoin's black market rate

TLDR Two rates; Trusted Bitcoin with clear trail to KYC & Untrusted Bitcoin from unknown sources, offshore exchanges and mixers

With the rise of KYC and the move of some custodians and exchanges to restrict transactions to “trusted” Bitcoin, we may soon see an economy where Bitcoin trades at two price-points:

  • Trusted: A clear trail, from KYC sources
  • Untrusted: ~ Remaining

Untrusted Bitcoin would be harder to exchange to fiat - one might have to rely on peer to peer exchange, or accept a premium to either obtain clean Bitcoin, or a fiat-bank-deposit for use everywhere Bitcoin is not tolerated or accepted. Of course this won’t be a problem if adoption takes off - outside of tech centres and countries already deep in hyper-inflation.

Maybe this is the moment, that pushes more users to look for alternatives to KYC-services?

I mean, if you’re in Bitcoin for reasons other than to get rich, KYC doesn’t necessarily fit into the picture. The question is, what percentage of holders does this apply to? And does it matter?

That’s the beauty. You get to do, how you want to do.