Bilateral markets are more than just a smart business model. These platforms can democratize access and facilitate broad economic inclusion in previously inaccessible markets. They have already done wonders in countless sectors – such as the stock markets – and the world of digital asset liquidity can now be a breeding ground for this business model.

Successful new platforms bring together buyers and sellers who may not otherwise be able to communicate, and create completely new value streams for sellers who generate more revenue. In the meantime, buyers gain access to new opportunities and make a profit to all participants. A CoreSight study found that revenues from bilateral markets such as Airbnb, Fiverr, eBay and Uber could exceed $ 40 billion by 2022.

The Google Adsense program is a great example of how a two-way marketplace creates a whole new source of value for buyers and sellers. The solution, which benefits both publishers and advertisers, has helped accelerate the growth of a new business class and become an industry leader. Google’s advertising service raised $ 134.8 billion in 2019 (including AdSense and other Google advertising products). Become over 11 million Adsense users (sellers). Google has created new sources of demand for ad content on high-traffic sites by offering ad space to legions of small advertisers (buyers), resulting in higher bids, more ads, and higher ad sales.

AdSense has made it possible for websites of all sizes to monetize your audience by selling ad space with ease. In addition, AdWords helped small businesses that needed an easy way to advertise quickly gain access to a previously inaccessible world. What once required a team of media buyers and large budgets for TV, radio or print ads is suddenly possible with just a few clicks at affordable prices.

Unexpected problems with cryptocurrency
Cryptocurrency innovators like Bitcoin (BTC) base their creativity largely on the philosophy of economic empowerment. The origins of Bitcoin as a peer-to-peer electronic money system are designed to enable consumers to pay each other directly, accurately and securely through an unchanging blockchain revision.

It is possible that Satoshi Nakamoto, the creator of Bitcoin, did not expect Bitcoin to generate more than $ 200 billion in just ten years. It is also possible that Satoshi did not anticipate the many new cryptocurrencies that have followed hundreds of digital exchanges around the world where investors can trade digital assets.

As new stock exchanges spread around the world – each built in a separate depot – market segmentation has increased dramatically. Ironically, this market segmentation prevented the accumulation of liquidity even when the overall market value rose. As a result, today’s stock exchanges face significant challenges in securing price and time priority for orders, reasonable spreads and transaction speed. The liquidity bottleneck is a kill on the growth of trading in digital assets.

Full record
It is important that the markets mature and reach critical mass before a two-sided platform hits the stage. Today’s cryptocurrency trading has reached this stage: with the increase in the number of exchanges and traders, the demand for liquidity continues to grow.

I think a two-way marketing platform will be the solution to this problem. Cryptocurrency exchanges depend on market makers to buy and sell at predetermined prices. These orders add liquidity to the stock exchange, which benefits the exchange’s customers. At the same time, liquidity providers (also known as market makers) must have the means to provide the necessary trading volume and capital. Their return can be high as market producers have the opportunity to sense the difference or difference between the lowest purchase prices and the higher sales prices.

Market makers need not only capital but also technology and trading experience to inform automated trading algorithms. While marketing can be an attractive way to leverage capital for young players, they are excluded because they lack capital, trading volume or experience of participating.

Like AdSense, a two-way marketplace building platform will allow traders large and small to stick to digital assets on specific exchanges and trading pairs (such as publishers in an AdSense template that allocates advertising resources). In the meantime, swap the “bid” for the volume of a commission paid to market makers (such as Adsense advertisers).

Source: CoinTelegraph