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Crypto "market cap" isn't really comparable to the market cap of companies. Nobody would (or could) ever buy Dogecoin for 44b. But companies are usually purch

Crypto "market cap" isn't really comparable to the market cap of companies. Nobody would (or could) ever buy Dogecoin for 44b. But companies are usually purchased for more than market cap.

archie_diak 5y ago
Er, yes they would. Thousands of people already have, that's why its 44bn. It's a market cap not a paper valuation. Are you suggesting that if someone wanted to buy Doge outright they could pay less than it's market cap?
- rhino369 5y ago
  There is no mechanism to buy all Doge and the "market cap" of Doge includes lost coins. If you bought all of Doge, its value would be gone since it would be like it didn't exist. You might as well calculate the market cap of baseball cards. It's just not the right way to measure the worth of a crypto. Put another way, if Doge owners decided to collectively sell it would be worth 0.
  - archie_diak 5y ago
    Hypothetically if some whale wanted to 'buy' Doge say to shut it down or something, they would probably have to spend a lot more than the market cap and as you yourself point out they still wouldn't have bought all the Doge that existed. OP was comparing amounts i.e $8bn seems like peanuts when 'joke' coins are hypothetically worth more than $44bn, and not really comparing market caps (which doesn't really make sense, again as you yourself pointed out).
    - secabeen 5y ago
      True, but the flipside is also the case, if someone wanted to sell a significant fraction of a cryptocurrency or high-value stock, they wouldn't necessarily get close to the current market cap either.
- charrondev 5y ago
  On the other hand a surge in demand would likely raise the prices as you tried to buy it all up.
- totalZero 5y ago
  Think about the total basis in Dogecoin. Compare that number to the takeout valuation for a public company, which would be the basis of the acquirer. That's the point GP is trying to make, in a roundabout way.
manquer 5y ago
No one can buy Amazon or Tesla at their market cap today either. Sure companies valuation are backed by revenue and profit numbers unlike crypto. However the multiples both these companies trade at along with the way Amazon treats "profit" their dividend habits means no buyer can actually recoup the investment by means of profits generated in a reasonable investment window. The only way to make actual money with these stock is to sell it even higher not that different from crypto. Look at last 2 years of the stock market even ignoring GME/AMC there seem to very little correlation with the actual numbers for these companies.

Crypto "market cap" isn't really comparable to the market cap of companies. Nobody would (or could) ever buy Dogecoin for 44b. But companies are usually purchased for more than market cap.

archie_diak 5y ago

Er, yes they would. Thousands of people already have, that's why its 44bn. It's a market cap not a paper valuation. Are you suggesting that if someone wanted to buy Doge outright they could pay less than it's market cap?

rhino369 5y ago
There is no mechanism to buy all Doge and the "market cap" of Doge includes lost coins. If you bought all of Doge, its value would be gone since it would be like it didn't exist. You might as well calculate the market cap of baseball cards. It's just not the right way to measure the worth of a crypto. Put another way, if Doge owners decided to collectively sell it would be worth 0.
- archie_diak 5y ago
  Hypothetically if some whale wanted to 'buy' Doge say to shut it down or something, they would probably have to spend a lot more than the market cap and as you yourself point out they still wouldn't have bought all the Doge that existed. OP was comparing amounts i.e $8bn seems like peanuts when 'joke' coins are hypothetically worth more than $44bn, and not really comparing market caps (which doesn't really make sense, again as you yourself pointed out).
  - secabeen 5y ago
    True, but the flipside is also the case, if someone wanted to sell a significant fraction of a cryptocurrency or high-value stock, they wouldn't necessarily get close to the current market cap either.
charrondev 5y ago
On the other hand a surge in demand would likely raise the prices as you tried to buy it all up.
totalZero 5y ago
Think about the total basis in Dogecoin. Compare that number to the takeout valuation for a public company, which would be the basis of the acquirer. That's the point GP is trying to make, in a roundabout way.

manquer 5y ago

No one can buy Amazon or Tesla at their market cap today either. Sure companies valuation are backed by revenue and profit numbers unlike crypto. However the multiples both these companies trade at along with the way Amazon treats "profit" their dividend habits means no buyer can actually recoup the investment by means of profits generated in a reasonable investment window. The only way to make actual money with these stock is to sell it even higher not that different from crypto. Look at last 2 years of the stock market even ignoring GME/AMC there seem to very little correlation with the actual numbers for these companies.