"market cap" assumes infinite demand for your currency, and that all your currency will sold at the current value. Kinda not happening.
Models being imperfect, don't make them useless, especially when you're modelling both phenomenom the same way.
Global cryptocurrency “market cap” exceeds “US” currency in circulation
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Re: Global cryptocurrency “market cap” exceeds “US” currency in circulation
#12"Market cap" is a completely meaningless phrase in the crypto space. One of my least favorite things about crpyto in general is their frequent adoption of words and phrases that have actual meaning in traditional finance and then repurposing them for vaguely similar purposes to imply parity.
Why is it meaningless?
Re: Global cryptocurrency “market cap” exceeds “US” currency in circulation
#13I see the war on cash and untraceable financial activity is getting along according to plan.
I'm curious - are you skeptical about the efficacy of projects like zcash and monero, or just that they would be sufficiently widely deployed to serve the same role as cash?
Re: Global cryptocurrency “market cap” exceeds “US” currency in circulation
#14Market cap is a strange way to frame crypto. Would you ever talk about market cap of USD or the pound? Transaction volume, unique addresses, stock to flow are more useful.
Money supply is possibly the number one metric that I use to evaluate investments.
Re: Global cryptocurrency “market cap” exceeds “US” currency in circulation
#15Market cap is a strange way to frame crypto. Would you ever talk about market cap of USD or the pound? Transaction volume, unique addresses, stock to flow are more useful.
Money supply is a functional equivalent of market cap and is a rather common economic measure.
Re: Global cryptocurrency “market cap” exceeds “US” currency in circulation
#16Carefully picked number #1 is greater than carefully picked number #2 to give false impression that this supports an unstated hypothesis.
Re: Global cryptocurrency “market cap” exceeds “US” currency in circulation
#17"Market cap" is a completely meaningless phrase in the crypto space. One of my least favorite things about crpyto in general is their frequent adoption of words and phrases that have actual meaning in traditional finance and then repurposing them for vaguely similar purposes to imply parity.
Why is it meaningless?
There are 4.6 bitcoin transactions per second, how many dollar transaction do you think there are per second and what kind of volume of dollars are traded. Also there are different kinds of dollar in circulation, for example M2 is much higher (by a factor of 10)
https://fred.stlouisfed.org/series/M2SL.
Re: Global cryptocurrency “market cap” exceeds “US” currency in circulation
#18"Market cap" is a completely meaningless phrase in the crypto space. One of my least favorite things about crpyto in general is their frequent adoption of words and phrases that have actual meaning in traditional finance and then repurposing them for vaguely similar purposes to imply parity.
Why is it meaningless?
A better question to ask is 'why it has meaning'.
Money supply has meaning because it's money in circulation.
If I print 1000 'Buddy Dollars' and sell one to a friend for $1000, it doesn't really mean that I have $1M in Buddy Dollars.
It might be helpful to compare the amount of USD spent on goods and services vs. the amount of Crypto spent on goods and services.
Re: Global cryptocurrency “market cap” exceeds “US” currency in circulation
#19In this context, "currency in circulation" refers specifically to coins and paper notes, not electronic or accounting forms of dollars.
Re: Global cryptocurrency “market cap” exceeds “US” currency in circulation
#20Around 20% of bitcoin is believed to be lost if I remember correctly.
I wonder if there is a similar number for US paper currency?