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The entire BTC market cap is minuscule -- about 600bn as of this writing. That seems like a lot, but compare it to Apple -- the market cap of just this one com
by pjlegato 6y ago
The entire BTC market cap is minuscule -- about 600bn as of this writing.
That seems like a lot, but compare it to Apple -- the market cap of just this one company's stock is currently ~2,238bn.
The market cap of gold, US dollars, Euros, etc. are all many times more than Apple. The value of all BTC is a tiny microscopic speck compared to the amount of USD or gold in the world.
This means (among other things) a few small players (with tiny capital relative to, say, the size of all USD) can swing the BTC market either way with a comparatively tiny amount of value moving around.
That would seem to greatly limit BTC's usefulness as any kind of inflation gauge for the broader economy.
- pojzon 6y agoTo give an another view: 600bn is more than gdp of majority of countries.
- pjlegato 6y agoCorrect, and those countries' economies also give us little to no signal about US dollar inflation. The proposition was that BTC prices somehow inform us about that.
- fernmyth 6y agoMarket cap is a stock. GDP is a flow. Comparing the two is nonsense.
- imtringued 6y agoGDP is income. What you are doing is the equivalent of comparing your mortgage payment with the price of the house when you bought it.
- sharpneli 6y agoFor individual humans that’s like saying ”My net worth is $100k and that is more than most people earn in a year”. Yes that is true, it is larger. But it is meaningless comparison and misleading at best.
- chii 6y agocomparing GDP to market cap is also a very irrelevant kind of comparison. Just because the use the same dimension (like dollar) doesn't mean they are directly comparable.