You are equating legitimacy with liquidity, and the that isn't necessarily true.
Liquidity is necessary, and a good marker, but not sufficient.
Liquidity is necessary, and a good marker, but not sufficient.
How so? Liquidity is a measurement of how easy it is to trade, and if it's easy to trade there are many people/entities that believe it's "legitimate" currency, or they wouldn't trade for it
This is where I personally think bitcoin fails.
I completely agree. I don't think this is different from saying the store of value needs to stay liquid tho. Bitcoin is currently very illiquid compared to many things, but there's no reason to think it's liquidity will decrease, and based on trends and first principles of what makes something a good 'money', significant reason to believe liquidity will continue to increase