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And what fraction of USD do banks need to keep in reserve? What's the rate at which we 'minted' USD in the last year? Even if we assume that Tether is 100% fr
by aeternum 6y ago
And what fraction of USD do banks need to keep in reserve? What's the rate at which we 'minted' USD in the last year?
Even if we assume that Tether is 100% fraudulent and has zero reserves, that still only represents 24 billion of bitcoin's 600 billion market cap. Nothing compared to the USD that was 'minted' recently.
- spiralx 6y agoThe "market cap" of a cryptocurrency is a meaningless value. If I create a million coins and sell one for $1 that doesn't mean there's a million dollar market suddenly. If the BTC market was really $600bn you wouldn't see the price regularly rising or falling 10% or more in a single day based around small numbers of trades.
- aeternum 6y agoBut that's what market cap means. The same is true of a stock. If NKLA creates 1mil shares and sells a few for $1, their market cap is $1mil. Even if the float (shares available) are only 10% of total shares outstanding, if those shares now trade at $20 the market cap becomes $20 mil.