Today, everything holds some value as each day, globalisation reminds us of stock market crashes, profit and loss statements and much more financial scenarios around which the world revolves. From our daily bank transactions to the online shopping we do on the Internet, we determine the worth and value of each thing before finally settling for it. However, not every kind of property or item has a good return of interest or profit when traded for. Liquidity can be achieved by a person or an organisation, when they are able to pay off for all their necessities with ease, without the involvement of any loss. The liquid assets for businesses usually involves check deposits or marketing funds, items that can be traded without any potential loss.
There are some items or products that can be exchanged for money, but it's very difficult to do so. These are known as illiquid products. Illiquid products can be sold for some handsome amount of cash, but with the major possibility of a loss being involved. A few examples of illiquid assets would be real estate properties or tools and equipment. Illiquid assets are actually long-term possessions.
Now let's come to liquid assets, we can see Bitcoin as the top trend in liquid assets. Bitcoin is a new and different form of money, in which there is no central authority or figure that controls it. For example, no banks are involved behind the technology of bitcoin, hence reducing the money deduction and the various kinds of fees that are otherwise usually involved in bank procedures.It is peer-to-peer (P2P) and completely controlled by all the peers or people involved. Other than these digital currencies and the fame that they are beginning to enjoy, gold still remains as one of the top liquid assets.
Also See: The Future of Finance: Cryptocurrency #infographic
Below are the various assets which hold a lot of liquidity, in which bitcoin maintains its dominating reputation and position in the centre, since it does not have any controlling figure.
Infographic by: HowMuch
