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<p>[QUOTE=&quot;Clawcoins, post: 3226009, member: 77814&quot;]Liquidity is hard to gauge based on (i) what you are buying, (ii) how much you are paying and (iii) what timeline you are holding and (iv) what timeline you want to sell it in and (v) your definition of &quot;Liquidity&quot;.</p><p><br /></p><p>For instance, if I pay $400 for a 1800 US Dollar coin I could</p><p>(a) use it as a Dollar face value INSTANTANEOUSLY at any time ... highest liquidity though largest loss of acquisition costs (-$399)</p><p>(b) sell it to a pawn shop (open 24 hrs for availability) for say $125 .. pretty fast liquidity, lower loss of acquisition costs (-275)</p><p>(c) sell it to a coin shop for say $250 ... pretty fast liquidity though the number of coin shops in your area may be limited or not exist. (-150)</p><p>(d) sell it on a non-coin forum, coin forum, eBay, etc with varying prices etc that may take, say 5, 10, 30 or more days to sell depending up on what I want to sell it for. (varies greatly)</p><p>(e) and added on is the demand, economic conditions etc which may cause pressures (either positive or negative) on any of the above except (a)</p><p>(f) how do I value money, not just now, but in the future.</p><p><br /></p><p>Of course this model changes if I have an ASE valued at say $16 but with a $1 face value all dependent upon my concept of &quot;Liquidity&quot; becz I have a less loss at (a) versus the above example.</p><p><br /></p><p>But you are right about the hobby, you can get out of it at any time.</p><p><br /></p><p>At the very least you can just use it as money as I stated before; or some valuation based on *your* acquisition costs above that which is the true unknown.&nbsp; </p><p><br /></p><p>As stated previously you could have bought it above market value at which case when you go to sell if you to try to obtain &quot;your concept of market value&quot; you could lose money.</p><p><br /></p><p>It&#039;s not about profit.</p><p>It&#039;s about your concept of liquidity;</p><p>acquisition cost based upon your concept of market valuation (think of the Mike guy on CoinTV and ppl way overpaying for stuff as an example and then finding out they were duped at sale time);</p><p>and your concept of fair selling price;</p><p>which is based upon your definition of &quot;liquidity&quot;;</p><p>which may or may not impact an individual profit/loss of an acquisition if you even consider that at all (which we don&#039;t know).[/QUOTE]</p><p><br /></p>

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