Bitcoin liquidity problem ahead

How settlement issues grow with higher Bitprice

If I understand it right, bitcoin exchanges does not possess any cash capital cushion, are only backed by virtual currency, and are playing role of intermediary matching the trades between bitcoin holders and pre funded cash accounts wanting to get into bitcoin, without any timeframe commitment for trade settlement.

So the level of demand on every bitcoin exchange is determined by the level of pre-funded cash accounts on that exchange. That is also reason for huge price differences between bitcoin exchanges.

So to say, imagine that the success of bitcoin will continue. Media is on board, UK mint wants to back up bitcoin with gold in the most funny news of the day and the price trend of bitcoin has beaten the performance of all known asset classes this year.

This for me as an outsider to bitcoin market looks very promising, knowing that the general public or major retail didn’t get into bitcoin on a larger scale until today. This suggest buy buy buy.

That being said, and after this exponential rise below, I think most of bitcoin fans expect this only to be beginning of future world.

If that holds true, who would not believe that bitcoin can rise to $10 000? It is only 10 times more than current price level and bitcoin fans are used to doubling their money in few days, so why not?

This would mean that if you want to cash out with 10 000 bitcoins at the price $10 000, you would need to have 100 million dollars in pre funded cash accounts wanting to get into game on particular exchange you want to exit if you don’t want to face risk of price fall.

I am concerned how easy is to get someone commit 100 million of fresh capital or someone trading in and out with 100 million when lot of participants never committed huge cash into this game. They have high motivation to get out. It was different when the price was low, but now?