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More than 90% of Bitcoin volume is fake, there is no question about that. However, if you believe Binance's figures then these figures alone are sufficient to

More than 90% of Bitcoin volume is fake, there is no question about that. However, if you believe Binance's figures then these figures alone are sufficient to support Bitcoin's current market cap in the sense that its volume / market cap is about the same as for well-traded stocks from S&P500. In other words, the claim that the volume is too small is not well supported because it is as small as for other financial assets, e.g., between 0.2-1% of market cap per day.

JumpCrisscross 7y ago
> if you believe Binance's figures then these figures alone are sufficient to support Bitcoin's current market cap in the sense that it market cap / volume is about the same as for well-traded stocks from S&P500 You're defending a metric by citing the metric. The only utility for market cap with Bitcoin would appear to be to make arguments like this one. Comparing a nonsensical ratio to a similarly-sounding meaningful one. To someone who isn't thinking through what the numbers and their resulting ratios mean, I suppose it sounds authoritative.
- account73466 7y ago
  >> To someone who isn't thinking through what the numbers and their resulting ratios mean, I suppose it sounds authoritative. Is it an insult, Arnav? Thousands of scientists use my research and they would probably disagree that I am "someone who isn't thinking through what the numbers and their resulting ratios mean".
  - JumpCrisscross 7y ago
    Not an insult. An observation regarding the metric. The product of Bitcoin's price and its current circulation is financially meaningless. It's meaningless for fundamental reasons. (It’s even more meaningless to compare it to an equity market cap.) That doesn't mean it is useless. People talk about it because it's a marketable metric. But so is community-adjusted Ebitda or the theoretical value of a comet's mineral wealth derived from multiplying its mass by the latest commodity trade. These are narrative tools. Not analytic ones. Both are okay, but they have different roles.

JumpCrisscross 7y ago

> if you believe Binance's figures then these figures alone are sufficient to support Bitcoin's current market cap in the sense that it market cap / volume is about the same as for well-traded stocks from S&P500 You're defending a metric by citing the metric. The only utility for market cap with Bitcoin would appear to be to make arguments like this one. Comparing a nonsensical ratio to a similarly-sounding meaningful one. To someone who isn't thinking through what the numbers and their resulting ratios mean, I suppose it sounds authoritative.

account73466 7y ago
>> To someone who isn't thinking through what the numbers and their resulting ratios mean, I suppose it sounds authoritative. Is it an insult, Arnav? Thousands of scientists use my research and they would probably disagree that I am "someone who isn't thinking through what the numbers and their resulting ratios mean".
- JumpCrisscross 7y ago
  Not an insult. An observation regarding the metric. The product of Bitcoin's price and its current circulation is financially meaningless. It's meaningless for fundamental reasons. (It’s even more meaningless to compare it to an equity market cap.) That doesn't mean it is useless. People talk about it because it's a marketable metric. But so is community-adjusted Ebitda or the theoretical value of a comet's mineral wealth derived from multiplying its mass by the latest commodity trade. These are narrative tools. Not analytic ones. Both are okay, but they have different roles.