For all the ecosystem’s advancements, buying bitcoin with cash is still a slow process, one some argue has been traditionally underserved by industry startups.
Building on the foundation of Bitgo’s $250,000 insurance policy, BitQuick, a peer-to-peer cash-for-bitcoin startup, however, is looking to reinvigorate this dormant sector. By offering some basic bitcoin protections, BitQuick aims to serve the underbanked market while positioning itself as more secure and convenient than competitors.
How it works
Using BitQuick is relatively simple: sellers list their prices on the marketplace, where the company says bitcoin sales go for a 5% premium, and wait for a matching buyer.
Once a match is made, the seller places the buyer’s bitcoin into a multi-signature escrow wallet.
The buyer then must go deposit cash using a provided account number into a local bank location such as a Bank of America branch.
BitQuick has a number of measures in place that bitcoin marketplace competitors like LocalBitcoins don’t possess.
For example, in order to ensure both sides of the transaction are protected, BitQuick utilizes BitGo’s multi-sig wallet technology, which is insured up to $250,000.
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