Can Bitcoin become a liquid asset? Read this, don't underestimate fundamentals!

Warning: The danger of underestimating the importance of Fundamentals
Economics is considered a social science and distribution of wealth. these studies are done through fundamentals of economies. So if you are trying to find your path through Cryptocurrency, DO NOT procrastinate learning about basic definitions and fundamentals. Do not forget to investigate the fundamental aspects and concept of each coin or trend.

OK!

Now the question is, Can Bitcoin become a liquid asset?*

In the middle of 2017, I read an article in Forbes**, about Bitcoin liquidity problem. In any system of money, there is a trade-off between value and liquidity. Value is something that Bitcoin is great at, but liquidity is what is seems to be missing in Bitcoin. So if this problem sticks to Bitcoin, it will become a commodity like Gold, instead of a currency.

The way things stand today between governments and the new economy phenomena, cryptocurrencies are a non-current asset. A more “legitimate” regulatory approach will be beneficial to Bitcoin and altcoins moving forward. Japan started such approach years ago. South Korea has shown flexibility, and some countries like Iran, Malaysia and Venezuela have said they are going to issue ICO and Cryptos legally.

So the liquidity problem of bitcoin is not same as the argue some people have, that bitcoin's market capitalization isn't real because people can't cash out all of that value simultaneously. It is more about how legally fast anyone can cash out even a Satoshi.

Liquidity thus means that there aren’t discounts or premiums or legal issues attached to it during buy or sell and it’s easy to enter and exit the asset.

As the Bitcoin world is expanding, its popularity and acceptance is growing alongside, which will bring in many more to try it out. So it is becoming more liquid today comparing to the time that Forbes article was written!

• definition of Liquid asset: An asset that can be converted into cash in a short time, with little or no loss in value. Liquid assets include items such as accounts receivable, demand and time deposits, gilt edged securities. In some countries, precious metals (usually gold and silver) are also considered liquid assets.

** read that article here: https://www.forbes.com/sites/francescoppola/2017/07/26/the-fundamental-conflict-at-the-heart-of-bitcoin/2

Thanks for reading my post, I believe Blockchain technology will result in more equality in the world, so I do my best to spread the knowledge of any product on such platform; just like Cryptos.

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