"Bitcoin's illiquidity is going to be a huge problem when the bubble bursts"

in #bitcoin7 years ago (edited)

I get it. Some are bears, some are bulls.

At the current time, it is difficult, or better said cumbersome to trade in your bitcoins for cash. It is a process, it is not swiping your debt card.

But this will change soon enough, technology moves at a very fast pace today. It might not be extremely liquid, but look at your bank account for instance. Making a purchase over a certain amount needs to be approved, via text or a direct phone call to the bank. Credit card companies block and decline big purchases because they are afraid of fraud. Anybody anywhere who tries to transfer or deal in sums greater than $10,000 will experience push back from financial institutions as well as government interference.

The FBI in the US keeps tabs on any transaction over 10k, sometimes even 7.5k. The law actually requires banks to report these big transactions to authorities. So worrying about liquidity is an issue, but not a deal breaker. Fiat or crypto, you are still going to jump through hoops. Given that bitcoin is trading at approx. $19,0000 of course you are going to have delays cashing out. But only a fool would in my opinion.

The one thing these analysts don't seem to understand, is why people are investing in crypto instead of the product offerings they are selling. They have a dog in the fight, they want you to purchase their stocks, bonds, and mutual funds. They need to hit quotas, set up IPOs, and make big bonuses. Of course they are worried that this generation is not going the traditional route, the route the baby boomers established... the NASAQ, NYSE, AMEX, etc. Young adults instead of investing with them, are investing in something more exciting.

http://www.businessinsider.com/bitcoin-is-illiquid-transaction-times-2017-12