4 ms·
>Is my liquidity assumption mistaken? You're absolute (and obviously) correct about Bitcoin's volatility, but you're mistaken about its liquidity. Bitcoin is
by jnbiche 13y ago
>Is my liquidity assumption mistaken?
You're absolute (and obviously) correct about Bitcoin's volatility, but you're mistaken about its liquidity.
Bitcoin is quite liquid if you're in the U.S. and many other countries around the world. The only delay is the time required by the legacy banking system to wire or ACH funds in/out of your exchange account.
- jljljl 13y agoInteresting. I did some digging and have a few follow ups: 1) Bid Ask spreads vary by exchange and currency, but it seems that with the exception of BT China an MtGox, the bid ask spreads can be quite wide. Prices for BTC/USD also very a good bit by exchange, meaning the price a merchant sets might be influenced by which exchange they use. [1] http://bitcoinwatch.com http://bitcoinwatch.com 2) The MtGox live chart seems to imply that an order of a few bitcoins (or a few thousand dollars) could have a profound impact on the actual price of BTC/USD. This does not seem particularly liquid to me, unless I misunderstand the chart. http://mtgoxlive.com/orders http://mtgoxlive.com/orders
- jnbiche 13y agoNo one is using MtGox anymore, exactly because it isn't very liquid (money hard to get in and out). Take a look at Bitstamp.