Bikan Salon reveals: Bitcoin OTC daily trading volume is close to that of large exchanges

On the evening of June 17, a unique private cocktail salon with the theme of Bitcoin OTC was held at Beijing Zhongguancun Angel Club. The organizer was Bikan, which focuses on Bitcoin mobile applications. After receiving RMB 10 million in financing in April this year, the Bikan team immediately launched a new Bitcoin OTC (Over The Counter) product in May, and quickly grew into a rising star in the OTC market.

OTC is a mysterious blue ocean. How big the trading profits and market size are have always been the focus of ordinary users. This private cocktail party for OTC products attracted many potential traders and users who are interested in the OTC market, and the scene was very lively.

Liu Aihua, the founder of Bikan, first shared his wonderful experience on Bitcoin exchange and OTC trading. Bikan is nicknamed "Huawei Gang" in the industry. Mr. Liu Aihua has worked in Huawei for more than ten years as a technical expert and agile coach. He is also one of the earliest Bitcoin players and is affectionately called "Bikan Lao Liu" in the circle. Lao Liu mentioned that there are three important nodes in the Bitcoin OTC link: ordinary users, traders and platforms. Ordinary users are foreign currency exchangers, traders are foreign currency exchange points, and there are also matching and guarantee platforms. In Bikan OTC products, Bikan itself plays the role of a matching and guarantee platform.

Trading volume continues to increase, OTC is a blue ocean

Lao Liu provided a data in his sharing. On May 24, 2016, the over-the-counter trading volume of Bitcoin was 5,200 BTC. Comparing the trading volume of several major exchanges on the "Bikan" app, it is not difficult to find that the Bitcoin OTC trading volume at this time can basically be compared with the large foreign exchanges such as Coinbase that charge transaction fees. In the OTC legal currency share, data on June 12, 2016 showed that the RMB accounted for 2.1% of the total global legal currency exchange, and the proportion of the Chinese market in the global legal currency exchange has continued to grow since 2013.

OTC market size

OTC legal currency share

Yunbi.com COO Lao Mao is not only a senior Bitcoin player, but also one of the earliest professional traders in China to enter the OTC field. He also shared a chart on the spot, showing that the OTC transaction volume in the past week was 25,165 BTC. At the same time, it is not difficult to find that the Bitcoin OTC transaction volume has been growing in the past year. The sharing of the two unveiled the mystery of the OTC market. In the early stage of Bitcoin development, the trend of the continuous expansion of the OTC market has gradually emerged. With the development of Bitcoin in the future, it is still unknown how large the OTC market can develop into, but it is certain that the current OTC is undoubtedly a blue ocean.

Bitcoin OTC Trading Volume

OTC pros and cons: convenience and risk coexist

Bitmain is the investor of Bikan’s A round of financing worth tens of millions. That night, Sharif, the head of Bitmain’s overseas market, also came to the scene to introduce the development of the OTC overseas market. Sharif compared the advantages and disadvantages of OTC transactions:

“In OTC transactions, users are often willing to pay higher transaction fees, so it is profitable for traders. At the same time, unlike the trading limits of exchanges, the two parties in each Bitcoin transaction can negotiate the amount by themselves, which is convenient for large transactions. Both parties are interested in faster and more anonymous transactions, and in most cases offshore accounts are used. Of course, OTC transactions also have some disadvantages, such as money laundering, ‘dirty money’, and unknown risks.”

Regarding the risk control of OTC products, Lao Liu has previously stated that Bikan will try to simplify the review process and make it easy to use on the basis of complying with the laws of various countries; for small transactions, it will try to minimize the obstacles caused by the review.

In order to satisfy the curiosity of the guests about OTC products, the party also invited Mr. Jiang Hai, a doctor of network systems from the Chinese Academy of Sciences, who is also the founder and CEO of Bubu Blockchain. He popularized the blockchain, which has been very popular in the past year, and shared the application exploration of Bubu Blockchain.

Bubi Blockchain is a commercial blockchain that covers exchanges, points, insurance, equity crowdfunding, supply chain finance, jewelry anti-counterfeiting, etc. At the same time, some funds cooperating with Bubi have promised an investment of 150 million yuan. Bubi plays the role of "LP" in the fund, helping the fund to identify blockchain-related companies and invest in them. At present, the average amount of angel investment obtained through Bubi Blockchain is about 3 million yuan, with an average valuation of more than 40 million yuan.

As the popularity of blockchain grows, the market's acceptance of Bitcoin gradually increases. We will have to wait and see how far and how wide the Bitcoin OTC path can go.