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Comment by abirch

4 hours ago

Bitcoin's supposed to be "liquid" but I'm wondering what happens when there's a forced liquidity event.

What do you mean by forced liquidity event?

  • If people are trading bitcoin on margin or if Strategy is forced to sell a large percentage of its holdings.

I mean, it's the opposite of that; it's forced illiquidity when people lose access to their keys. There is no way to gain access to those coins and you cannot "force" liquidity on the bitcoin protocol.