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A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

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Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#91

Post by pedrocr »

sgk284 wrote: post #83
pedrocr wrote: post #57

Earlier quoted context omitted.

What's wrong with it? Seems like a perfectly normal metric for coins just like for stocks and bonds.

Because I can create a cryptocoin with 2B tokens, sell one coin to friend for $100 and have a $200B market cap. It's got nothing to do with reality. Anyone (literally) can create a $200B market cap coin by forking a github repo.

That's just how market caps work in general. The same argument has been made for startup valuations. It's not a problem with the metric at all and doesn't hold for the case being discussed as actual market based transactions in enough volume are happening. It's not just a made up number. Here's an argument that Facebook was not worth 33B$ in 2010 because only 3% of its value had ever been transacted:

https://signalvnoise.com/posts/2585-facebook-is-not-worth-33...

It's worth almost 17 times more than that now. Market cap is not a perfect metric because it doesn't capture the depth of the market willing to buy but coins don't make that any different.

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#92

Post by LV-426 »

kfriede wrote: post #75
Carioca wrote: post #74

Earlier quoted context omitted.

> means to put food on the table With a bit of help from the taxpayers: http://www.dispatch.com/news/20180105/amazon-makes-list-of-l...

> 700 employees So, 0.14% of their workforce.

From the article:

"Amazon likely has about 700 workers [in Ohio alone] receiving food stamps, more than 10 percent of its Ohio workforce"

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#93

Post by ateesdalejr »

snoman wrote: post #71
pedrocr wrote: post #57

Earlier quoted context omitted.

What's wrong with it? Seems like a perfectly normal metric for coins just like for stocks and bonds.

I'm just guessing that it's because it's not a stock or a bond. I don't ever hear what the market cap is for the yen, or any other currency.

That's because they can always print more. There's no cap.

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#95

Post by djsumdog »

noncoml wrote: post #69
dboreham wrote: post #65

I'm beginning to see how delusional it is to think you can make money by producing something useful or of value in people's lives. That's for lusers. Instead mess with the neural pathways of a large population such that they just give you their money.

Depends on what you want in life. If all you care about is money, then yes, your post makes sense.

Money can be a thing of worship, like in the film Wolf of Wallstreet.

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#96

Post by thom »

kfriede wrote: post #85
thom wrote: post #80

Earlier quoted context omitted.

You mean, "giving them means to live in a tent near an Amazon fulfilment centre."

Who is forcing them to work at Amazon? Their lives are clearly better working there than if Amazon had never existed. If conditions are so bad that these employees live in tents, why not quit and.... oh wait.... live in tents (now with less money).

Well, good luck with that.

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#97

Post by djsumdog »

digitaltrees wrote: post #84
ACow_Adonis wrote: post #76

Earlier quoted context omitted.

Reminds me of: "Oh, Father. You're so wrong. Let me explain. [Puts and empty water glass on his desk] Life, which you so nobly serve, comes from destruction, disorder and chaos. Now take this empty glass. Here it is: peaceful, serene, boring. But if it is destroyed [Pushes the glass off the table. It shatters on the floor, and several small machines come out to clean it up] Look at all these little things! So busy no…

Fifth element. That’s a Deep cut.

I don't remember this scene. I might have to watch it again.

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#98

Post by tomrod »

iak8god wrote: post #41
gumby wrote: post #39

Admins, could you correct the headline to say “crypto currency website”?

"cryptocurrency" is a bit of a mouthful, so I at least understand the urge to shorten it, but I wish we could agree to at least shorten it to "cryptos," as in: "A Cryptos Website Changes Its Data..."

Crypto means cryptography. Cryptocurrency should be shortened another way. Perhaps "Cryptotoken."

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#99

Post by jeremyjh »

tomkarlo wrote: post #67
PhasmaFelis wrote: post #66

Earlier quoted context omitted.

When you play the stock market (telling phrase there), are you not making a bet that your stock will increase in value?

Not necessarily, and not in the long term. You can buy stocks with no expectation they will increase in value (or even maintain value) if the dividend yield is high enough. And stocks have value because of this - the assumption in any stock, even one currently without a dividend, is that eventually it will pay out some form of a dividend to its holders. You may buy a stock hoping it will will rise in value, but that…

There are plenty of stocks that no one ever expects any distribution or dividend from, but they know it represents a claim on real value (assets and incomes) in the business, and that there is a market where they can resell it for more money if the value of the underlying assets increase. All the incomes may go back into the business but that doesn't mean they don't increase real value.

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#100

Post by twinkletwinkle »

retube wrote: post #44
Klathmon wrote: post #10

CoinMarketCap is in a tough position here. I can obviously understand not wanting to list massive outliers in an average, but at the same time there isn't realistically a way for them to "safely" adjust which exchanges they include in the averages. No matter what, it's either going to cause big sudden jumps in either direction, or they can "smear" it across some time, which (in my opinion) would look really bad as it…

> but at the same time there isn't realistically a way for them to "safely" adjust which exchanges they include in the averages. this is a very solved problem in financial markets: you source quotes from a set list of contributors, ditch a set number of the highs and lows and average rest, possibly weighted in some way, e.g trade volume.

Oh, like LIBOR! That's always worked perfectly, hasn't it?
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