> The rigidity and hard ceiling on liquidity of Bitcoin is a major weakness of the currency [..] How do you arrive at a ceiling on liquidity from a ceiling on

> The rigidity and hard ceiling on liquidity of Bitcoin is a major weakness of the currency [..] How do you arrive at a ceiling on liquidity from a ceiling on stock/supply (number of coins in existence)? Or are you referring to the limited number of transactions the Bitcoin blockchain can handle over a given time period? As far as I can see, neither of these two limit the liquidity of Bitcoin. Transaction speed at the exchanges is not limited by the Bitcoin blockchain, since bitcoins exist as credit on each exchange (which can be redeemed into actual, on-blockchain Bitcoins through withdrawal). And I don't see how limited supply limits liquidity, since gold is highly liquid as well as strictly limited in supply.