Cash Flow Follow Up
Money makes the World go around yet we are seeing less physical cash, but the money is still flowing. Crypto allows borders to disappear making the flow that much quicker and easier.
A month or two back I wrote about my "friend" who I have known for a number of years running a cash flow business. Not the normal run of the mill business you would get involved in as there are obvious risks involved. This is part of the underworld we don't get to see very often unless your needs to move money change and there are plenty who do require this service.
Today my "friend" phoned me asking for advice on crypto as over the last week he has had 3 enquiries regarding cash for crypto deals. I was hesitant to offer advice as I do like my kneecaps as they are (joke maybe). He obviously trusts me like I do him as this is a closed shop to outsiders.
The discussion lasted a couple of hours as I gave him a number of scenarios which he could then choose one and then it was his decision and not mine if things go wrong. I had asked him previously how involved he was with crypto and only received vague answers like you have o move with technology etc. That was obviously all bull and now needs my help as the majority out there no nothing about crypto.
I am seeing him next week and spending the day with him as he needs to learn and fast. The obvious lucrative opportunity is taking the Bitcoin on offer and doing the transactions swapping it for cash and keeping the crypto. I am not sure if this is all crypto for cash or a mixture with cash for crypto as this would be a no brainer and a quick swap.
I am 100% certain he needs to have a crypto stash no matter what the deals are as this is where his business is going to change over the next few years anyway. I have often wondered where he hides the service fees he charges as it must all be in cash and this is one easy way of storing his funds safely in crypto on a cold wallet.
In order to help him I need to understand the business more as I don't have the foggiest how they get around the money controls etc as there is a world wide network in place. Maybe just maybe there is a business opportunity here even if it is in a very grey area. I am looking at this purely on an advisory level and nothing else.
My thoughts are you don't need an off and on ramp as funds are coming directly to you and you are then servicing taking a cut moving the crypto on to another account who also needs a deal done in reverse. I do see the service growing for people wanting to move funds into crypto without using the obvious on ramps highlighting their deals and the same the other way around receiving cash for their crypto.
Who knows where this will lead if anywhere but we are still so early and this just highlights how early. Whatever happens having no footprint on or off the exchanges is critical for this to work with nothing leading back to everyday institutions like a bank or a regulated monetary provider.
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THe last time I gave advice on crypto, I thought I was a pro. And then BTC went from 40k to 69k to 18k. Now I just gear people to DYOR and find what works for them.
I think it's a good way to avoid the financial eyes of the system but there still needs to be some contact with the banks for your friend or someone down the chain. If it works out and pays the bill, I don't see anything wrong with it.
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I would think the biggest barrier to something like this is you have to have that money invested ahead of time so you can have the BTC (or whatever) on hand to move to people. Getting that into your account is likely going to raise some red flags. There is also the inherent risk involved. I feel like this is something he is going to have to build up over time. It just makes sense that he would get involved though. Best of luck to you working him through it!
That is why is aid if someone has Bitcoin and they want cash that sets him up to do this. Then he can build his crypto wallet from there and servicing people as they require.
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Yeah, that makes sense. Gonna need that influx in before he can start doing the other transactions.