Comment on Bitcoin Falls 20% on PBOC Rumors, Chinese Exchanges Reinstate FeesparentComments−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.
Comments
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.