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Transfers between accounts != liquidity. Liquidity is selling an asset without moving the price. If you sell $50m of AAPL, a highly liquid stock, the price may
by abakker 9y ago
Transfers between accounts != liquidity. Liquidity is selling an asset without moving the price. If you sell $50m of AAPL, a highly liquid stock, the price may move a bit, but not a ton. If you actually sold $50m of bitcoin, you would probably have trouble getting the buyers AND the price would fall.
- cwkoss 9y agoBitcoin is certainly much less liquid than AAPL, but thats somewhat off topic. Person I was replying to was talking about daily transaction limits, not liquidity. My point was that the standard he proposed is not even met by the biggest online stock exchange platforms.
- omarchowdhury 9y agoAccording to the current orderbook on GDAX, you can market sell $50M of BTC, and the price would drop to a little above $7000 (on GDAX). So, no, you wouldn't have trouble getting the buyers since they are right there on the order books, but yes, the price would fall. You'd still get your $50M.