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Crypto “market cap” is fiction. In a blink of an eye 25% is lost, and not because 25% of the market cap was withdrawn.
by ohmanjjj 5y ago
Crypto “market cap” is fiction. In a blink of an eye 25% is lost, and not because 25% of the market cap was withdrawn.
- Ekaros 5y agoMost fun thing is to think how much of the underlining thing for marketcap is even on market... With bitcoin it is known that decent fraction hasn't moved in years. So why is this even included in calculation? Might even make sense to calculate how much is on cold wallets of known entities and then add to those how many actual coins have moved in let's say in year. Then multiply this number by price to get more realistic idea of market cap.
- everfree 5y agoAll market caps of all assets are "fiction" in the sense that they don't measure the total amount of money that all units of the asset could fetch on the market.
- ohmanjjj 5y agoTrue. Also leverage further distorts the true market cap. With Bitcoin $100k can easily be used to buy $800k worth of Bitcoin or more in some platforms. And yes, same is true for the stock market. Everything is made up. Nothing is real.