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Not sure I agree with any of it, but I definitely object to claim that btc lacks liquidity. Most of its liquidity problems are caused by the crappy USD banking
by ahi 15y ago
Not sure I agree with any of it, but I definitely object to claim that btc lacks liquidity. Most of its liquidity problems are caused by the crappy USD banking infrastructure. The #2 exchange, Tradehill, is adding traders like crazy. It takes traders literally 10 minutes to move their bitcoin onto the Tradehill exchange but it will be another week before their USD will get transferred in.
When MtGox reopens in a day I expect a run. MtGox is rolling back trades, but some withdrawals almost certainly made it through so there is some concern they won't have the funds to cover. If MtGox survives the run I think btc is stronger than before the crash. I give MtGox better than 50:50 odds. They've been pulling 1.3% of every trade, or more than $300k in the past month alone. There are daily withdrawal limits so MtGox has time to make trades on the (depressed) open market to fill any holes.