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What does PayPal have to do with Bitcoins? Trying to buy or sell Bitcoins with PayPal is foolish.


Right. So no liquidity solution then. It's foolish, obviously, because it doesn't work: it looks like fraud. As it does to all the other banks out there. So bitcoins are illiquid. They're like oddball collections. "Valuable" to a few, but basically useless as an "investment" to people with liquidity requirements.

One corrolary you'll note is that because they are both illiquid and volatile, they even suck as a speculative investment: if you make a bad bet you can't get out of it.




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