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LocalBitcoins ad limits hurting Bitcoin community
2 points by opticbit on Nov 11, 2017 | hide | past | web | favorite
Local Bitcoins Ad limits are not getting adjusted. Many of their limits are btc based. Some of them get adjusted when the price of BTC moves significantly. For a long time the minimum deposit to have an ad show up was 0.4 BTC. Its been adjusted down to 0.1 BTC and needs to go lower for many of the new traders. The ad limits Have not been adjusted. Each user can have 5 ads as a base. Then 1 new ad for every 1btc traded in a month. When BTC was $500 this was a resonable limit. Now that btc is over $5k it makes it difficult for many traders to maintain the trade volume to keep ads up. To buy and sell in one category it takes 4 ads if you use the trust system. Trusted ads are only shown to people that have been marked trusted. Many use it to offer trades with higher limits, and better prices to people they have verified as a good trade partner.

Pro-traders, a badge given to traders that have high feedback, and meet certain criteria have been asking for LBC to adjust these limits for months now.

When the Bitcoin price rises significantly, it attracts scammers, for multiple reasons. News gets around, and scammers like to get in early on stuff. It turns good people into scammers, they might be somewhat of a gambler, and when the price moves against them they do a charge back to get out of the loss. Scammers tend to create new accounts, and concentrate on a certain type of scam.

When Pro-traders (very unlikely to scam, but it still happens) can’t make ads in other categories, scammers fill in the gaps. Leaving people no choice but to think the offers are good.

Writing this and posting in multiple places is the best way I know to pressure them to fix it. The real pressure is monetary, but for them its unrealized as they continue to make good money. However they’re reputation is dropping, as the scammers move towards outweighing the good traders. People are moving over to other platforms, or trading outside the provided escrow which is how they make their money.

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