2 ms·
You left out the difference in market cap. > In 2011 it crashed 94% ($35 -> $2) In 2011 Bitcoin's market cap was 23.6 million > In 2022 it crashed 76% ($66,9
by danans 4y ago
You left out the difference in market cap.
> In 2011 it crashed 94% ($35 -> $2)
In 2011 Bitcoin's market cap was 23.6 million
> In 2022 it crashed 76% ($66,938 -> $15,853) - so far..
In 2022 Bitcoin's starting market cap was $891B.
In this context, I understand "scary" to mean "destructive economic impact", and from that perspective a 76% crash is very scary.
- notch656a 4y agoMarket cap only represents the unrealized, fictional value that presumes the latest price multiplied across every coin. A destruction of say 76% of the market cap in no way means 76% of the value of the instruments used to obtain the BTC was destroyed. That is, it's possible for it to be impossible to ever realize losses anywhere near the market cap. An example. A thousand people pay $1 for a coin. Then two people pay $1000 for a coin. The market cap is now about a million even though only about $3k USD were traded for the coins. A massive reduction in market cap would give the misleading idea the better part of 1M was destroyed, when in fact there can't be more than $3k in realized losses.
- danans 4y ago> Market cap only represents the unrealized, fictional value that presumes the latest price multiplied across every coin. A destruction of say 76% of the market cap in no way means 76% of the value of the instruments used to obtain the BTC was destroyed. That is, it's possible for it to be impossible to ever realize losses anywhere near the market cap. That goes out the window the moment that the current "market cap" value of the coin is used as collateral for transactions involving "real" money and assets.