Currencies are not only traded on forex markets. You trade your currency every time you buy a coffee or whatever, or even if you buy Bitcoin or stocks.
Additionally, in currencies order books can be viewed as extremely thick. If you buy your coffee, you don't set a limit order 2% below of the real price, but instead buy instantly at a value very close to the price, because you assume the price of these goods are fair and won't change during the day (there are exceptions to this rule, like hyperinflations, of course).
Additionally, in currencies order books can be viewed as extremely thick. If you buy your coffee, you don't set a limit order 2% below of the real price, but instead buy instantly at a value very close to the price, because you assume the price of these goods are fair and won't change during the day (there are exceptions to this rule, like hyperinflations, of course).
When you buy a coffee with bitcoin, that volume doesn't show up in coinmarketcap or whatever website. This reported volume is only for exchanges volume, this has nothing to do with blockchain transactions.
All this volume that happens on-chain is not reported in the volume or liquidity we are talking about here.
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That is one of the main reasons why currencies are so stable and are seen often as a "safe haven".
Only USD is considered really a safe haven, maybe euro. The rest of the 100 fiat currencies out there are really not a safe haven. The currency of my country just lost about 30% value against USD in this corona virus crisis.Quote
Bitcoin still can't really count with that advantage. If you sell >100 BTC often you already move the price.
I strongly disagree with this, and all data provided by all websites like coinmarkecap shows exactly the opposite: We have a daily 46 billion usd volume, which is like 4,267,041 BTC daily!![/quote]
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Those who want a "safe haven" status have to find other reasons, like its scarcity or the "stock-to-flow" theory, but these reasons in my opinion are not convincing enough to last long term and sustainably - altcoins show that even very "scarce" cryptocurrencies can erode completely.
So an increase of liquidity is still top priority for Bitcoin is important if it wants to become a safe haven in the same way than a fiat currency. (Gold, as I wrote, is completely another story because of its millenia-long tradition as value storage.)
Well, we can agree that we disagree. So an increase of liquidity is still top priority for Bitcoin is important if it wants to become a safe haven in the same way than a fiat currency. (Gold, as I wrote, is completely another story because of its millenia-long tradition as value storage.)
