Ov1, a Taoist Bitcoiner on Nostr: Even in real life, in one of the major US metropolitan areas there are only a small ...

Even in real life, in one of the major US metropolitan areas there are only a small handful of places to liquidate gold coins. They not only have limitations on business hours and amounts, they also charge premiums well above Spot prices IF they are even buying when you want to sell.

Typically, we want to sell when the price rises and they don't want to buy when it does. So, they simply close their OTC desk when you most want to use it. They also generally don't have proper authentication tech on hand so will only buy stamped coins they recognize and trust.

This is all inferior to true P2P markets, like cash<=>LN sats physical trades. The problem that arises when transforming a physical to a virtual phase state the physical liquidity pool and departures from it must physically be defended.