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Calculation of market cap is interesting, because we (almost certainly) know that a good fraction — as much as 20% — of mined bitcoins are lost forever through
by bpodgursky 6y ago
Calculation of market cap is interesting, because we (almost certainly) know that a good fraction — as much as 20% — of mined bitcoins are lost forever through accidental key destruction. So you have to adjust this market cap by the remaining, probably liquid, pool.
- vmception 6y agoThere are some indexing sites that do that.
- adhoc32 6y agoHow? It's impossible to know if someone has lost his private keys or the address is dormant.
- vmception 6y agoThey guess/assume with some addresses, like Satoshi's or the EC2 instance that was destroyed with the private key and all the customer's funds haven't moved since 2012
- 627467 6y agoProbabilistically, you probably can estimate that. Is a permanently dormant address just dormant or is it "burnt"?
- bpodgursky 6y agoTo a degree, but there are some real whale accounts in question. Satoshi alone may have access to 1.1mm coins — or maybe not.
- mamon 6y agoOk, so now I get why Bitcoin is regarded as "deflationary": on long enough timescale almost all bitcoins will be lost this way, and the last man that still possesses his wallet keys will be a trillionaire. /s