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I am confused too. You can compare the market caps in a sense. A company with 1000 shares worth $10 each has the same market cap as a cryptocurrency with 1000
by hedgew 9y ago
I am confused too.
You can compare the market caps in a sense. A company with 1000 shares worth $10 each has the same market cap as a cryptocurrency with 1000 tokens worth $10 each. The $10 price is the highest price people are willing to buy the share/token at. In economic terms, they're quite equivalent?
That's where the similarities end. A token does not mean ownership. It doesn't mean a share of profits. Tokens do not necessarily have any rules about how many there will be.
More practically, a single person owning 100% of a cryptocurrency would likely reduce the value to zero. Owning 100% of a company, you can at least sell its assets.