Liquidity is good business

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·@daniasi·
0.049 HBD
Liquidity is good business
https://img.leopedia.io/DQmcbrZbXE8jvzMbN5C5u61rpkzLuVgG3DepfdVz56DmQSF/1000061038.jpg 
[source](https://www.freepik.com/free-ai-image/cyberpunk-bitcoin-illustration_236291645.htm#fromView=search&page=21&position=21&uuid=9ef2b711-2eda-43c9-a62b-2408179c2aea&query=Market+liquidity+AI+generated+)  

I read one of such [articles](https://inleo.io/@leoglossary/leoglossary-article) [on chain](https://inleo.io/@leoglossary/leoglossary-on-chain) and I was left to think it over. There was much sense in it, something I am going to expanciate in this article. What if Strategy (formerly Microstrategy) decided to [sell](https://inleo.io/@leoglossary/leoglossary-sell) [ALL](https://inleo.io/@leoglossary/leoglossary-all-currency) its [Bitcoin](https://inleo.io/@leoglossary/leoglossary-bitcoin) holdings? We are talking of over 641 [BTC](https://inleo.io/@leoglossary/leoglossary-btc) here that is worth more than $64 billion. The question here is not why would they want to sell but however, how will they sell it?.   

In the [cryptocurrency](https://inleo.io/@leoglossary/cryptocurrency) [market](https://inleo.io/@leoglossary/leoglossary-market), who sells matters. Has your few bucks ever shown in the candle trends? Of course not, the big holder has got you well covered. So we can say the cryptoverse is only to the favor of middle class [investors](https://inleo.io/@leoglossary/leoglossary-investor); their selling brings no market pressure to the table. Beyond just how much Bitcoin can grow to in [price](https://inleo.io/@leoglossary/leoglossary-price), the most vital part will be how viscous the entire [ecosystem](https://inleo.io/@leoglossary/leoglossary-ecosystem-digital) is.  

I just came to realize that any big firm that will want to sweep their Bitcoin holdings clean will be selling at a [loss](https://inleo.io/@leoglossary/leoglossary-loss-financial). So yes, many are holding on to this [asset](https://inleo.io/@leoglossary/leoglossary-asset) just at an uncertain price until when true stability is ascertained. Indeed I can say there is still a long way to go for the cryptoverse. Without settling the issue of [volatility](https://inleo.io/@leoglossary/leoglossary-volatility), it will be difficult to get some set of investor’s attention.  
 https://img.leopedia.io/DQmbV6yTTgJPEYon4QTS8peLfM8TftKefCEtxCyeQv2nKdy/1000061041.jpg 
[source](https://www.freepik.com/free-vector/franchise-isometric-composition-with-location-price-symbols-illustration_13693641.htm#fromView=search&page=11&position=5&uuid=106a647b-62f6-4443-a80b-d4f13b6b9004&query=Market+stocks+buying+AI+generated+)  
Talking of such, [Warren Buffett](https://inleo.io/@leoglossary/leoglossary-warren-buffett) and his Berkshire Hathaway team just poured in over $61 billion into US assets (Treasury bills). Consider what such [funds](https://inleo.io/@leoglossary/leoglossary-fund) can do to the cryptoverse. So why is WB not interested in buying BTC? Warren remains an investor who has high value for [liquidity](https://inleo.io/@leoglossary/leoglossary-liquidity). 

We have to admit this, if you can't sell when and how you want to sell, then such assets are not actually yours. In [short](https://inleo.io/@leoglossary/leoglossary-short-selling), this was one of the gaps [blockchain](https://inleo.io/@leoglossary/blockchain) tech birthed crypto for.  

The fact here is, liquidity is and will remain a good [business](https://inleo.io/@leoglossary/leoglossary-business). I took that as a [footnote](https://inleo.io/@leoglossary/leoglossary-footnotes) from that news; ‘WB focuses on safety and liquidity in an uncertain market’. No wonder he is not giving attention to what is currently happening in the cryptoverse. 

I can assume Berkshire Hathaway will finally opt into this [ecosystem](https://inleo.io/@leoglossary/leoglossary-ecosystem) but from that footnote, it means they are waiting just for the proper [time](https://inleo.io/@leoglossary/leoglossary-time) to strike.   

Low [risk](https://inleo.io/@leoglossary/leoglossary-risk) is far better than volatility when you have enough financing power. I can remember I wrote such an article centering on how 1% can be a big ROI depending on who is investing. In essence, we can say the cryptoverse is still bedding on a gamble and yes, [gambling](https://inleo.io/@leoglossary/leoglossary-gambling) is not a mature business.   
 https://img.leopedia.io/DQmPaAWM7qYj8uDCzUiDnN2BqbACBJWWrAViF857nUyC1ft/1000061043.jpg 
[source](https://www.freepik.com/free-vector/cryptocurrency-market-trends-analysis_415727004.htm#fromView=search&page=3&position=46&uuid=7f92f9b6-c860-480e-bcc5-4f024015c84c&query=Stablecoins+market+AI+generated+) 
This shifts our attention to how necessary [stablecoins](https://inleo.io/@leoglossary/leoglossary-stablecoin) can be in this business. How big is the Bitcoin market? We are talking of over 41% crypto market dominance yet it is still operating in volatility. On the [Vice](https://inleo.io/@leoglossary/leoglossary-vice-2015-film), stablecoins market is currently at around 7% market dominance, this is something that needs to grow way faster because a [lot](https://inleo.io/@leoglossary/leoglossary-lot-commodities) hangs in here.  

Nevertheless, the assumed flaws to look in here is the fact that [TOP](https://inleo.io/@leoglossary/leoglossary-top-currency) stablecoins like [Tether](https://inleo.io/@leoglossary/leoglossary-tether) and USDC are centralized chains. We are talking of a vision [Breach](https://inleo.io/@leoglossary/leoglossary-breach-2020-film) when it comes to what Bitcoin was whitepapered to deliver. The question remains, which do we value most at this crossed road; Bitcoin and its alts associates or stablecoins and its centralized parties?  

Tight, isn't it and yes, user dependent. The future here is dependent on who will dominate this [technology](https://inleo.io/@leoglossary/leoglossary-technology). We can't doubt that centralized systems have this [hedge](https://inleo.io/@leoglossary/leoglossary-hedge). You wouldn't think Blackrock is holding onto so much Bitcoin just to settle for high price swings. 

No, the next [building](https://inleo.io/@leoglossary/leoglossary-building-structure) to lap this market will be stablecoins. This is why I like writing, you know I just got to understand more why the big players are pushing for RWA and most importantly pegged to stablecoins? It is a move to stable their accrued assets.   

To conclude, let me add, this is not a move to doubt, the future of cryptocurrency is not tagged to price swings. This is more of a child’s [play](https://inleo.io/@leoglossary/leoglossary-play-theater) if I should say. The most serious season of crypto will emerge when liquidity becomes a thing. Yes, when investors are in no means worrier about losses in case they want to withdraw huge. 

Posted Using [INLEO](https://inleo.io/@daniasi/liquidity-is-good-business-k9k)
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