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Market cap != market liquidity If I create 100 billion FakeCoins and sell one to my grandmother for $10, suddenly FakeCoin has a 1 trillion dollar market cap.
by earthtolazlo 6y ago
Market cap != market liquidity
If I create 100 billion FakeCoins and sell one to my grandmother for $10, suddenly FakeCoin has a 1 trillion dollar market cap. It doesn’t mean there’s anywhere near that much money actually in the market to support that valuation.
- tossAfterUsing 6y agothis is precisely right and why nobody should ever buy a bitcoin under any circumstance.
- blaser-waffle 6y agoI dunno, they're pretty useful for buying drugs and VPNs...