> Is my liquidity assumption mistaken? Unless you're an investment banker, yes. There are multiple exchanges that handle daily volume in the 10's of millions U

> Is my liquidity assumption mistaken? Unless you're an investment banker, yes. There are multiple exchanges that handle daily volume in the 10's of millions USD, with order books deep enough that you could cash out millions of dollars worth of bitcoin without moving the price more than a few percent. That's nothing compared to what Wall St or the city is used to, but it is plenty enough liquidity for all but the most well off individuals, and growing. When the Winklevoss twins get their bitcoin ETF to IPO, I expect these numbers to increase by orders of magnitude. Also, none of that is counting the significant volume of transactions which occur non-public or off-exchange.