[rtpg]

>It's much easier to convert a used iPhone (the top search on eBay) into cash, sell concert tickets on craigslist, or trade collectibles, than it is to convert bitcoins into legal tender

Really? What about all the services like Bitstamp? I am fairly sure that bitcoin is more liquid than used iPhones.

[AnthonyMouse]

> Really? What about all the services like Bitstamp? I am fairly sure that bitcoin is more liquid than used iPhones.

The actual problem is that the entire concept of trying to separate currency from commodities is defective. Forget about used iPhones. You can walk into any pawn shop and exchange a bar of silver for goods or cash. Does that mean silver is a currency? What about copper? Or gasoline? Try to buy something on Craigslist and offer to pay with a gas card. More likely to succeed than offering bitcoin.

[svedlin]

I think for most people, bitcoin isn't particularly user-friendly yet. By comparison, selling a used phone on eBay or craigslist is pretty easy...

[a_c_s]

Being user-friendly has nothing to do with liquidity.

Stocks, which most people don't understand and can't be sold without contacting a broker are considered liquid.

Jewelry & stamp collections are not considered liquid assets, yet everyone understands what these are and where to purchase them.