Yep, looking at the guy's issue he has a lot of bitcoins but wants to get them converted to fiat without throwing up red flags of money laundering (aka, the government doesn't know every detail of where the money came from). In theory it would work out for us if I cashed out my house proceeds and gave him cash for the bitcoins. But a wire transfer from my government bank to his would throw up red flags.
Actually, it would be interesting if you were able to work out some kind of deal for an in-person cash transfer with a guy like that that maybe would take place over several weeks in order for you to purchase all of the $150k worth of bitcoin's at a price that would be agreeable to both of you (and likely you could be able to work out a deal that would be advantages to both of you).... On the other hand, sometimes on a personal level you may not want to get involved in dealing with someone who appears to be engaging in legally questionable activities when you are not and that could result in too many problems for you, merely because you are attempting to get a better deal on your bitcoins.
I spoke with BitPay to see about an OTC trade but they recommended I use itbit. I've looked at their OTC platform and they only charge .1% which is reasonable.
I agree that .1% is pretty reasonable, especially comparing to other possible avenues.
I will have to tell my government bank to make sure to note that this large deposit is coming from a home sale so they can report to their masters about why I am moving so much money. I will have to inform them that my wire transfer is for the purchase of bitcoins so they can also report that as well. Wouldn't want the government to be uninformed about money flow.
Well, really it appears that at this point you have nothing really to hide or obscure, so for efficiency sake it is probably more prudent to take these kinds of measures in order that your money is less likely to get held up at any point in the processing (or to be assessed unreasonable and incorrect penalties in the future).
I'll be converting 100% (about $150k) to bitcoins. I see no need to hang on to that much money in dollars. I have no near term plans to purchase a home or anything like that with it and I don't live in the US anyway so dollars are useless to me (other than the occasional visit to the Commissary).
I already made my point regarding this, and certainly, each of us has to decide for ourselves regarding our level of allocation. I used 80% as a reference point, but actually my current personal BTC/Fiat holdings (in terms of my bitcoin allocated funds) currently stands at 92% to 8%, but then I have other investments too, and my approximate total bitcoin proceedings remain a bit less than 30% of my total quasi-liquid assets which is quite a bit of a higher proportionally than historically I had allowed, and this growth in bitcoin allocation is largely based on bitcoin's more than 150% price appreciation in less than a year (if we consider the on average $230 price point in September 2015).