Market cap isn't as interesting as people think: https://blog.sia.tech/want-to-deflate-the-token-bubble-fix-t...
what a difference from the screenshot in the article to the current numbers...
A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes
161–170 of 177 posts
Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes
#162Earlier 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…
Aaah Keynesians
Please don't post unsubstantive comments here, let alone ideological flamebait. Those are just the sort of things we're trying to avoid on HN.
Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes
#163Earlier quoted context omitted.
>> When you are betting Full stop. You are trading or investing - if the word "betting" passes through your brain, stop now . The public surge of interest in crypto currencies is a redistribution of wealth from retail speculators to professional speculators. You aren't betting on the technology, developer community, ecosystem, or adoption anymore . At this point, you are betting you aren't the last one to the party.
When you play the stock market (telling phrase there), are you not making a bet that your stock will increase in value?
Yes but the increase comes from the company having more revenue by producing and selling more cars, iphones, CPUs, GPUs, pizzas, etc.
Cryptocurrencies like bitcoin don't generate an income. Therefore they shouldn't be increasing in value at all beyond the rate of inflation.
They should stay at a stable price adjusted by inflation +/- some volatility. If bitcoin suddenly increases in price there are only two possible reasons. Either inflation of USD is higher than expected (unlikely) or more speculation happens which drives up the volatility.
Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes
#164Earlier quoted context omitted.
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.
"Cap" doesn't mean what you're thinking in this context :)
Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes
#165Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes
#166Earlier quoted context omitted.
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.
That's not what a market cap means. There are cryptocurrencies too that have no limit on the number of produced coins. Market cap means market capitalization.
Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes
#167Earlier quoted context omitted.
>There was irrational price rise in the last few weeks for certain cryptocurrencies(Ripple, Tron) and this is part of the correction. What makes their increase 'irrational'?
They were irrational because if you analyzed all the coins in the top 100-200 you'll realize that it was primarily cheaply priced coins that were making the outsized gains and a lot of it can be attributed to market psychology. It feels better to own 200 of something you don't understand than 0.00159. But at the end of the day returns are returns and it makes no difference if you have 200 of a coin or 0.00159.
That's mostly true, but it doesn't completely work. 200 of something with a low market cap with the potential to gain 200-4000% is way better than 0.00159 of something with a large market cap and low likelihood of doubling. E.g. a random altcoin vs bitcoin today
Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes
#168Earlier quoted context omitted.
"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."
> Crypto means cryptography
I hope that's considered obvious on HN.
The suggestion was that "cryptos" could be a suitable plural abbreviation for "cryptocurrencies" (unless it's typically used as an abbreviation for "cryptographies," which it doesn't seem to be). Anyway, I confess that seems likely to just cause more confusion.
Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes
#169Earlier quoted context omitted.
I keep asking if there is a better term than than straight MarketValue (shares * share price). Quoting from a previous comment of mine: Imagine two different sets of digital objects: AlphaCoins and BetaCoins - they're identical in the say way physics professors say "imagine an infinite frictionless plane". Both have a 1000 in circulation. Both are worth $10 each. Both have a market cap of $10,000 US Dollars. But the…
24h volume is related. For instance NEM has a market cap of 14B, but 24h volume puts it at 62M where as LTC has a market cap of 13B, but 24h volume of 0.9B. If you tried to liquidate the same amount (denominated in USD) in NEM and LTC you'd see much more price slippage in LTC than in NEM.
I'm probably misunderstanding something fundamental. If there's 14 times more 24h volume in LTC than NEM, wouldn't a seller experience more slippage in NEM?
Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes
#170Earlier quoted context omitted.
No, dogecoin theoretically caps out at ~30 transactions a second. Bitcoin caps out at ~7 tx/s. This bottleneck increases demand for tx completion and raises tx fees for bitcoin. The Dogecoin network can handle 4.5x more traffic than the Bitcoin network, meaning the satire cryptocurrency is a better technology at being a currency than bitcoin is.
Of course, since the Dogecoin client software hasn't been updated in the past two years it lacks the rather substantial performance optimisations that Bitcoin has developed over that time period, so it's not clear how well it would actually cope if it ever had to handle a transaction rate anywhere near its theoretical limit. (Or, for that matter, if miners are actually willing to process that many transactions.)
Sure, but there's no reason to believe that the Dogecoin network is not able to handle 30 tx/s.