I have a credit card and paypal but I cant buy coins at the going rate. That there is the biggest hindrence. != Liquidity.
This forum is more worried about trying to correct people and show how intelligent they are than any other forum ive seen. If you read my post you'll fully understand. It is pretty straight forward regardless of me saying liquidity or illiquidity. Its a liquidity issue.
No, it's showing how stupid I am, because I can't see why liquidity/illiquidity, Bitcoin, credit cards & PayPal should even appear in the same paragraph.
Ryann's point is a good one, though "liquidity" may not be the right term. The fact that you can't buy BTC with credit cards sucks, and is a major hindrance. Now, there is good reason why this occurs, but it still sucks, and we should all be finding ways to fix it or find alternatives (and indeed many people are doing this).
As it becomes easier to get in and out of bitcoin, the entire system will skyrocket in popularity.