Investors who have survived 2008’s financial crisis know the value of liquidity. When there is an economic recession, the market experiences deflationary pressure and buyers flee. Sellers rush to try and sell assets as soon as possible to prevent further price drops, but buyers are looking to take control of their risk and move into safer-haven investments like money market funds or treasury bond.

Nonfungible assets may be perceived as more risky by investors because of their lack of liquidity. An investor may sell if they wish.BTCThey can sell their Bitcoin to a list of potential buyers, at different price points. If a seller doesn’t sell their Bitcoin today, they can easily come back tomorrow and part ways with their Bitcoin in favor of willing buyers.