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Milford, IL | Your local bank won't convert Bitcoin to cash. A 'clearing house' or 'clearing firm' or 'clearing corporation' handles that transaction. A clearing firm is the buyer for every seller and the seller for every buyer - the middleman if you will. Yup, they take a cut, that is why every transaction has a bid/ask spread.
Nobody takes 50%-80% of face value on their asset unless its a fire sale scenario. And there is definitely money to be made (and lost) in cryptocurrenty if you're into gambling, which I'm not.
*edited to add, I used to think Verizon had a great business model. Why bother pushing $400 TV sets when you can collect $40 from everybody on a monthly basis in perpetuity. Then I began to understand Wall Street. Quick example, I hold some MRO stock. Trade volume on Friday 5/7/2021 was 20,125,755, just an average day. Bid ask spread is $0.01. The clearing firms conducting business Friday the 7th had collective net earnings of 200k on ONE STOCK, if the bid ask spread holds steady at one penny. Lots of stocks traded on any given week day.
Edited by JRosenberger 5/8/2021 23:26
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Cyber currencies.
