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BTC is liquid. You can easily convert BTC to a currency of your choice on an exchange, similar to stocks. There is plenty of volume to meet demand. Tether solve
by halpert 5y ago
BTC is liquid. You can easily convert BTC to a currency of your choice on an exchange, similar to stocks. There is plenty of volume to meet demand. Tether solves the problem of tying on-chain things to the U.S. dollar, which exists off the blockchain.
- SturgeonsLaw 5y agoIsn't the extreme volatility a symptom of a thin order book on exchanges?
- nullc 5y agoNo. And Bitcoin is pretty liquid, at the moment if you market sold $5m million dollars worth of bitcoin on bitstamp you'd drop the price by about 1% and bitstamp is by no means the largest exchange. Obviously not being quite as bone headed as making bulk market order would do better. ... now, how much VTI shares can you sell right now? None. The major equities markets are closed. When the markets are open, sure big equities indexes are very liquid, but many single stocks -- even fairly large ones it would be pretty hard to move $5m in an instant without crushing the price.
- pcthrowaway 5y agoI'd argue restrictions on stocks make it less liquid also (though this is as designed). If you have $3000 in stocks and you want need $100 you can sell the stock and then buy it back on your next paycheck. But unless your account is over a certain size, you can only do this so many times in a specified period. Since this restriction doesn't exist with crypto, you can sell and buy back the same crypto 1000 times in a day if you want to (and many bot operators do this)