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'approximate' is the key word as it's averaged over exchanges which is a big difference to standard market prices, as mentioned in the article: > Quoting a num
by icc97 9y ago
'approximate' is the key word as it's averaged over exchanges which is a big difference to standard market prices, as mentioned in the article:
> Quoting a number like “$19699.46” to seven significant figures when your data’s got a 5% spread would get your high school physics teacher slapping you upside the head. It’s entirely deceptive. It should say something like “$19,700 plus or minus $500 depending,” and that line graph should be a thick grey bar.
- baddox 9y agoI don’t think the “average over multiple exchanges” thing really matters that much when we’re talking about the usefulness of market cap. The reason market cap isn’t a great measure of “total value at the moment” is because there certainly aren’t enough buyers willing and able to buy all Bitcoins or all Apple shares at the current market price.
- njarboe 9y agoTrue, but if someone tried to buy all the Bitcoins or Apples shares, the price would start to go up. Getting them all would cost more than the current market cap. This is why company buyout offers are always for more than the current market cap.
- deleted 9y ago[deleted]