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The point is that no one really knows the actual value of any asset until you've sold it. You can only measure value in the past; future values can only be gues
by brndnmtthws 9y ago
The point is that no one really knows the actual value of any asset until you've sold it. You can only measure value in the past; future values can only be guessed (excluding things like future contracts).
This is true regardless of whether we're talking about Bitcoin, stocks, metals, houses, chickens, or seashells.
Most of these stupid market movement predictions are equivalent to astrology and only exist because WSJ and others have nothing interesting to say. The daily market fluctuations are pretty much random, and this has been proven many times over.
- Klathmon 9y agoI completely agree about "market movement predictions", but market cap is not a prediction, it's a metric, a statistic, a made up value that can help you compare one asset to another. It is used like a unitless measuring stick, not a prediction on what you can get if you sold. And I'll argue that it does it's job fairly well. It's difficult to "game", and can help give you some information about an asset. It doesn't say everything, it can't tell you if it's stable, or if it's being used or not, or if it's a scam. It's just a tool, a metric, something that you use with a bunch of other tools to get an idea of the ecosystem. I would be happy to "rename" it to a unitless value that doesn't imply a "total worth", but that ship has sailed, and it's not going to be possible, so we have what we have.