GBX: A Bitcoin-based Global Commodity Exchange? An overview

Most of the commodities are traded by using either of the two methods namely OTC market and Exchanges. OTC stands for Over-The-Counter. As the name indicates, the trading will take place in a decentralized manner as it doesn’t have any fixed physical location. Buyers and Sellers will communicate through phones and emails for making conclusions on the final selling price of the product. A deal that takes place between a dealer and a company is called Customer market whereas a deal that takes place between two dealers is called inter dealer market.

Forex trading and Debt trading are best examples of OTC markets. OTC markets do not have any strict regulations or rules for completing the deals. Also, it does not have any kind of mediator as there are only two parties involved: Buyer and Seller. The biggest risk in OTC markets is its inability in sustaining during any kind of financial crisis. Still, the daily trading volume in OTC is much higher due to the increased interest in the concept of alternative investment among the traders or investors.

A Commodity exchange has a physical location where the buyers and sellers can trade any commodity like sugar, wheat, coffee, corn, milk-related products, oil or even metals. It is a centralized exchange and the transactions are completed with the presence of a mediator between buyer and seller. A commodity exchange is strictly regulated and the traders have to adhere to the regulations for participating in the trade. When Compared to OTC markets, exchanges are much secure and stable to handle any kind of financial crisis. Also, the products sold through commodity exchanges will be of high quality as it needs to comply with the standards set by the exchange.

Which option is better for commodity trading? OTC market or Commodity Exchange? What do you think? It is pretty hard to decide as each market has its own merits and demerits. Right?

In order to provide the best benefits of both of these markets, Globitex Limited is developing a new decentralized global exchange which will provide a highly secure and an innovative platform for the traders to complete their transactions.

Globitex exchange will be a multilayered exchange which paves the way for participation of traders, manufacturers, farmers, investors, and exporters. This exchange will be the first one to use bitcoin as the medium of exchange.
Please visit the white paper https://www.globitexico.com/wp.pdf to learn more about the following concepts.

• Bitcoin linked spot and derivative trading
• Globitex Commodity Index also known as GCOM
• Physical delivery of Future contracts for precious metals
• LIBOR ( London Interbank Offered Rate)

The exchange will use a new token named GBX as the medium of exchange or currency to buy or sell commodities. GBX token will be sold by Globitex during their token sale which can be acquired by using any of the digital currency Bitcoin, Ether or Bitcoin Cash. To learn more information related to the pricing and discounts for the early participants, please visit https://www.globitexico.com/

Personal ETH wallet: 0xbb203a734f74699cbff8a3857b9b8713ba41bf8d