Comment on Bitcoin Falls 20% on PBOC Rumors, Chinese Exchanges Reinstate FeesparentComments−yen22312y"Bitcoin is tiny in comparison with a very illiquid (is that a word?) market. "The idea of Bitcoin being illiquid strikes me as being quite ironic.−avn210912yLiquidity != Volatility. There are many cases when it's hard to turn BTC into $US/Danish Pastries/Gold Bars; this makes it illiquid. Try getting your money out of MT Gox.−yen22312yThe irony is that Bitcoin is supposed to be a replacement for cash. Technically, it should be the most liquid thing out there.−dopamean12yI got what you're saying and I totally agree. I think the problems with liquidity contribute heavily to the volatility as well.
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"Bitcoin is tiny in comparison with a very illiquid (is that a word?) market. "
The idea of Bitcoin being illiquid strikes me as being quite ironic.
Liquidity != Volatility. There are many cases when it's hard to turn BTC into $US/Danish Pastries/Gold Bars; this makes it illiquid. Try getting your money out of MT Gox.
The irony is that Bitcoin is supposed to be a replacement for cash. Technically, it should be the most liquid thing out there.
I got what you're saying and I totally agree. I think the problems with liquidity contribute heavily to the volatility as well.