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The market cap of Ethereum is a worthless estimate of value. Ethereum has no backstop for value, unlike a casino or a company. Microsoft trading at $300 will ne
by thehappypm 5y ago
The market cap of Ethereum is a worthless estimate of value. Ethereum has no backstop for value, unlike a casino or a company. Microsoft trading at $300 will never go to $0.01, there are enough raw assets at play to keep Microsoft worth $1. But Ethereum can go to $.01 there are no fundamental reasons for it. So, the price is purely speculative, so you can in no way whatsoever compute the total value of Ethereum as marginal price * number of Eth out there
- paulpauper 5y agono it is is not. there are $470 billion of eth out there. some if locked up, but a lot of it held by people and exchanges. hence efforts to steal it. The market for eth is huge and very liquids and deems it worth $3970. Whether or not the value is subjective is irreverent to the fact that there is a huge market.
- thehappypm 5y agoNo, there are $470 billion if you make the huge mistake of assuming you can sell each one at the same price. This is an issue for stocks also. If 100% of Amazon share holders tried to sell simultaneously the price would fall precipitously. But, Amazon is at least backed by assets, dividend potential, and IP.
- paulpauper 5y agofrom the perspective of the scammer, there is a huge and liquid market. way more liquid than the market for fenced goods. we're talking tens billions of dollars eth traded a day on many exchanges. that is like 1000x as much stolen by this one kid. the market is big enough to support a lot of criminals. plus, many of them are not going to be cashing out.