3. If all BTC holders were to attempt to cash out RIGHT NOW, there would be a huge percentage that would not be able to find any takers.
How does that differ from all the world's gold holders panicking and trying to liquidate millions of ounces of gold within a few hours?
How is any commodity or currency or investment 'safeguarded' against market volatility? I'd love to hear your explanation.
Commodities can *only* be liquidated if there are people buying the commodity (be it gold, silver, palladium, platinum, oil, coffee beans, tulips or bitcoins).
Obviously if there are 10 million people selling something and only 1000 people buying, the price will drop because holders want to get rid of their possessions for any price available.