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Market cap is very different from the actual money invested in the ecosystem. I don't know the exact number, but I bet it's a lot lower than $100bn. Stupid exa
by stefano 9y ago
Market cap is very different from the actual money invested in the ecosystem. I don't know the exact number, but I bet it's a lot lower than $100bn.
Stupid example: I create 100bn coins. Then I sell one to myself for $1. Am I now running a $100bn experiment?
- jraines 9y agoYou don't need to explain the idea of paper wealth to me :) Yes, marketcap is flawed, and examples like yours do actually pop up because of the usage of this metric, but are quickly smacked down if they're traded on markets with any liquidity. Ethereum isn't in that category. We can do a Wall St. pissing contest about what consitutes "real liquidity" but I'll stick to that statement for Bitcoin and Ethereum at the least. It's just a matter of perspective: let's say you're invested in Google. You put in $1000 and now it's worth $100,000 on paper. Google announces they are closing their data centers and pivoting to cat food delivery: are they risking $1000 of your money, or $100k?