The Universal Crypto Exit Problem

[traderethereum]

It will not easy as you think to use crypto as money in a country. The government must prepare many things including regulations allowing crypto as a payment or money. They will say that they need time to do and setting the infrastructure which we don't know what it is.

But they are concern this since crypto becomes popular. They want to benefit from the situation so they must do something carefully. We could wait the next news from them.

[#CapsLOck]

I believe the hard part isn't making the conversion from Bitcoin to what? Fiat. The hard part is making the conversion without relying on any 1 company that can freeze your account or refuse a transaction. While P2P does assist. It is also dependent on locating a reliable buyer and they have an effective payment method to accept. The key features of the useful exit layer should be to minimize counterparty risks fees. And reliance on centralized services, not just to add more exchanges to the same user experience. The challenging part of the equation is how that can be done without violating local laws.

[Outhue]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

Bridges, swaps, exchanges, liquidity providers and what not? Too many steps, too many players in the market.

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

To the fresh developers, coders, and crypto innovators out there,

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

Why complaining about too many players in the market when your original complain is about the complication of converting crypto to fiat? With high numbers of crypto exchanges means many locations and countries will likely be supported, can you start by telling us which country you are from? If you are seeking for solutions you should be asking from other people that are in your country, hopefully they are available on here too, I don't have any problem exchanging my coins back into fiat and get sent back into my bank account, almost all available crypto exchanges have P2P services, it's now a far more challenging space for any developer to work on anything new today.

[joniboini]

Looks like most members agree that a single universal solution is going to work. You'll have to interact with fiat ecosystem in one way or another and it's hard to control that part since you're effectively using a network designed for centralized control. Even if a company or project wanted to solve this, how would they handle laws and whatnot? Will you trust their word for it? If they open and explain their solutions, there's a high chance governments will take them down as fast as possible (or other payment processors in general) if it bypass some KYC/AML checks.

This made me how slow "adoption" in my country is. After a decade of Bitcoin not many companies are launching something like an ATM or instant fiat/crypto gateway. I don't think the government will ever legalize crypto for payment either.

[davis196]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

Bridges, swaps, exchanges, liquidity providers and what not? Too many steps, too many players in the market.

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

To the fresh developers, coders, and crypto innovators out there,

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

1.Nobody is forcing you to use centralized crypto services. 2.You don't have to bother with "bridges, swaps, exchanges, liquidity providers" unless you are actively trading altcoins, memecoins and tokens.
What "universal exit layer" are you talking about? Do you want only one P2P exchange, where you could trade crypto for fiat? I don't get the point. Having only one crypto exchange means having a monopoly to dominate over the crypto market. Nobody wants a monopoly, because it would be bad for the traders/investors.
What "freedom layer" are you talking about? Your "freedom layer" is your cold wallet and the idea of not relying on centralized crypto services. Anything other than this is a compromise more or less, but compromising with this or that is inevitable in life.

[EarnOnVictor]

Perhaps, you should have explained yourself better instead of confusing people; thinking they know your mind on the exact point. You will only get random and various answers depending on how they understand it.

Well, based on my understanding, you want Bitcoin to be self-sufficient or self-sustained, right? That will not be possible in this world where fiat and other methods are huge reliant. The idea is the best though, but still, Bitcoin wouldn't have been this popular and adopted if not the relationship and flexibility it has with fiat and other swapping systems, which is where the real business around it is built.

[Somegory]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

Bridges, swaps, exchanges, liquidity providers and what not? Too many steps, too many players in the market.

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

To the fresh developers, coders, and crypto innovators out there,

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

The first question I have in mind for you OP is maybe cryptocurrencies are banned in your country? It sure looking like crypto is completely banned in your country because it's not possible that you can't easily convert your coins back to Fiat.

Even a beginner who is new to crypto knows that it's possible to exchange coins back to Fiat using Bybit, Mexc, HTX, Binance and many other crypto exchanges,  there are even those who are P2P platforms like Hodlhodl.

If crypto isn't banned in your country then the problem is you, maybe you are those people who finds everything crypto too complicated to do, I know someone who is like this, everything seems like a headache for him so much that he can't cope.

[TheUltraElite]

In the ideal situation this would not have been a problem if the merchants were using bitcoin regularly. However that is not the case and because the majority of users in the world are still fiat-first we have to have methods to quickly convert one to another.

I feel for those countries where restrictions on exchanges and taxation are a big issue, gift cards are a good alternative. The next question comes as to the availability of the specific merchant gift card, which is like the Achilles heel for this method.

Again one can argue that we are supposed to hold why the question of exit is even coming - its very passionate, but far from reality because selling is necessary to keep the market ongoing and hence options need to be there.

[oll]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

Bridges, swaps, exchanges, liquidity providers and what not? Too many steps, too many players in the market.

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

To the fresh developers, coders, and crypto innovators out there,

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

So how can we create banks for cryptocurrencies and Bitcoin? This would immediately contradict the concept of decentralization, because the very definition of a bank implies that a limited number of bank owners will decide the fate of Bitcoin users. This is unacceptable. No sensible, reasonable Bitcoin user would hand over their Bitcoins or their recovery keys to a third party. These are their property and will not be transferred.
Unfortunately, you're right that it's not so easy to simply exchange Bitcoin for a service or product, because in the vast majority of countries, cryptocurrencies are banned or have a grey, semi-legal status.

[KingsDen]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

Bridges, swaps, exchanges, liquidity providers and what not? Too many steps, too many players in the market.

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

To the fresh developers, coders, and crypto innovators out there,

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

Universal crypto exit?
The world have been seeking for universal peace, has it been achieved?
Is there a universal government?
How about universal currency?

In your concern, you are equating a universal problem to a technical solution. Building the model is not the problem, the problem is the universal politics.

While in your country, crypto exit might be tight but that is not applicable to my country;
While China might decide to suffocate crypto, US is trying to be the universal crypto capital.
This is the reality. You don't expect one United universe to back crypto while the long aged fiat that has profited them for long be abandoned.

Just understand that a universal political consensus cannot be reached on the blockchain.

[Emitdama]

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

To the fresh developers, coders, and crypto innovators out there,

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

The problem you are talking about is not a problem for which Bitcoin was created. Do you really think Satoshi created Bitcoin to be used the way we are using it today? He created Bitcoin to be used as a system of its own, and didn't create it so that we can convert bitcoins to fiat and then use that. I know that he was smart enough to have anticipated what is going to happen in the future because he knew Bitcoin has a limited supply and it is going to increase in value over time, but his intention of creating it wasn't to give us an investment asset, but he created it as a decentralized peer to peer transaction system, but we are using it as an investment asset or a store of value today.

Besides, the thing you are talking about is not possible where swapping Bitcoin or any other crypto to fiat can become easier than how we do it right now, because at the end of the day, you will be receiving fiat funds from another person or party, and you can always face the problems that you can today using P2P platforms for converting your funds. If you don't even know the source from where the funds are coming from, it can create even more problems, unless how we do it currently where we can ask the sender to not send third-party payments to avoid problems with our banks and funds getting stuck, etc.

[moneystery]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

It's actually not that hard to convert your crypto to fiat. In many countries, regulated crypto exchanges are already available, and you can exchange your crypto to fiat and vice versa. Except in countries that completely ban crypto, you might need to put in more effort to convert your crypto to fiat, but that's a regulatory issue. I don't think there would be anyone who would openly run crypto trading when regulations already forbid it, so you might need to find alternative ways to cash out, like P2P.

[Doan9269]

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

I'm curious about this you are saying now, is Bitcoin not serving its purpose or there is more to expect of it than what we are getting, I have always experienced a massive increasing adoption, and Bitcoin has been applicable in different areas, related to institutional adoption and even in some countries where the government permits the use of Bitcoin, among other benefits it serves. I'd rather admit that Bitcoin has been serving beyond its purpose from time to time.

[Moreno233]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

Bridges, swaps, exchanges, liquidity providers and what not? Too many steps, too many players in the market.

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

To the fresh developers, coders, and crypto innovators out there,

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

You are expressing these concerns because you want to convert from Bitcoin to fiat, something I don't see as mandatory.
The solution to this is never converting your Bitcoin to fiat but to use them to make payments as you would use other currencies.  This can be achieved if we have more businesses accepting payments in Bitcoin so that we can transact in Bitcoin only. This will surely need more innovations like crypto credit and debit cards which are already operational as we speak but need more improvements.

[Silverstonez]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

Converting crypto to fiat currencies may be difficult in countries where crypto is not allowed, but what I don’t understand is the complicated concept you are referring to. Unless you want to explain it to me for better understanding. If I may ask, do you live in a country where crypto is restricted or prohibited? If yes, then I can understand why you are finding it difficult to exchange your crypto.

[MisFoxie]

This is not a problem that Bitcoin developers need to do anything about. In some countries direct transactions are made through Bitcoin but if you live in a country where people don't know much about Bitcoin in that case you can sell Bitcoin through P2P and make transactions using fiat.

And if transactions through USDT are possible in that case you can send it directly to an exchange sell Bitcoin there and use it. The level of security you get from Bitcoin these simple one or two steps are not that much of a hassle.

[Hamza2424]

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

There are some platforms that can be used without KYC for P2P, but the only limitation that I have encountered is the unavailability of the fiat currency that I want because there are not many sellers there. If there is any reseller, their rates are either too low, or they are only a few with few trades and reviews that I can't trust them.

So we should definitely think about this problem, but individually, as I think there are always ways for someone to convert BTC to cash, but it's a bit complicated when you also want to preserve some level of privacy.

Although you can easily convert it as you want with centralized exchanges.

[IjawMan]

Is it really that difficult or complicated?

We already have various P2P merchants on different exchanges, both centralized and decentralized, who are willing to exchange fiat for your cryptocurrency.

^^

Even with exchanges people can still do direct P2P transactions without using any exchanges merchants as a third party. I have many times done P2P with some Bitcoin enthusiast folks I know, just sent my Bitcoin and I got a transfer in fiat at instant.

Nothing difficult really. Just anti-Bitcoin governments doing all they could with rusty regulations for policies that makes the process look difficult by making us follow it in a way not to break the regulatory rules. Just in the way it is in the China you made example of.

[aoluain]

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

So we should definitely think about this problem, but individually, as I think there are always ways for someone to convert BTC to cash, but it's a bit complicated when you also want to preserve some level of privacy.

Yea and by that I am taking it as privacy from the bank!

I can buy and sell Bitcoin anonymously through Hodl Hodl for example so in terms of what
the OP is complaining about, it has already been solved. The problem I have come up against
in the past was from the FIAT bank itself, asking questions about the transactions in and
out of my account, I have been able to fob them off in the past but for me that still remains
the choke point into and out of Bitcoin.

[uchegod-21]

We can move crypto across chains, but why is converting it into usable money still so complicated in most countries?

Bridges, swaps, exchanges, liquidity providers and what not? Too many steps, too many players in the market.

Main motive to start this Bitcoin was to create an alternative to the Banks. But after a decade when I look back, things were different back then.

To the fresh developers, coders, and crypto innovators out there,

Why hasn't someone ever thought about this problem? Can we build a universal exit layer or add a better freedom layer.

Is this the next big problem worth solving ?

Bitcoin being used as an alternative to the banks is not in the way of converting it first to fiat, you spend your bitcoin directly. If you are going to convert your bitcoins to fiat first everytime you want to spend your money, then you will only get yourself hooked in thesame fiat problem you were avoiding...what then is the meaning of the alternative payment method?

What you are describing about the complications of converting bitcoin to fiat is only peculiar to your country and other countries facing legal barriers with bitcoin usage or crypto in general. The process is not complicated in my country.

If there will be a universal exit as you said, then different governments of the world will have to reach an agreement.