Bitcoin hits $1T in market value
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Bitcoin hits $1T in market value
1–10 of 115 posts
Re: Bitcoin hits $1T in market value
#2It will be interesting to see Bitcoin sentiment shift as newcomers realize that the bulk of Bitcoin value is held by a small handful of early adopters, and that the bulk of Bitcoin mining capacity is held by a small handful of large mining companies.
Cryptocurrency proponents are trying to get ahead of this by reframing Bitcoin as the people's currency, or an opportunity for average people to get rich while sticking it to evil governments. It's interesting to watch people with $1000 of Bitcoin in their Robinhood accounts feel like they're on the winning end of this deal when they see their $1000 investment go to $1300 in the span of a week.
So much of the investment frenzy is driven by "what if" scenarios where Bitcoin takes over the world and that $1000 investment eventually makes early adopters millionaires in the new Bitcoin world order. The problem with that hypothetical endgame is that reallocating the world's wealth according to how early someone went all-in on a cryptocurrency gamble (and how much capital they had to invest at the time) would create inequality at unimaginable scale, not to mention completely disconnecting wealth from societal value creation. Our current market-based system isn't perfect, but a hypothetical Bitcoin economy would be downright absurd. If we end up with a crypto economy, it won't be underpinned by a currency where people switched over at values ranging from $0.01 to $1,000,000 per coin.
Re: Bitcoin hits $1T in market value
#3It will be interesting to see Bitcoin sentiment shift as newcomers realize that the bulk of Bitcoin value is held by a small handful of early adopters, and that the bulk of Bitcoin mining capacity is held by a small handful of large mining companies. Cryptocurrency proponents are trying to get ahead of this by reframing Bitcoin as the people's currency, or an opportunity for average people to get rich while sticking…
Comparing the Gamestop fiasco to Bitcoin, Gamestop just looks like normal market activity, where Bitcoin looks like criminal pump and dump activity... in my opinion.
Re: Bitcoin hits $1T in market value
#4It will be interesting to see Bitcoin sentiment shift as newcomers realize that the bulk of Bitcoin value is held by a small handful of early adopters, and that the bulk of Bitcoin mining capacity is held by a small handful of large mining companies. Cryptocurrency proponents are trying to get ahead of this by reframing Bitcoin as the people's currency, or an opportunity for average people to get rich while sticking…
Would it be much different from inheritance?
Right from birth, one person is destined to be poor while the other destined to be a millionaire.
Re: Bitcoin hits $1T in market value
#5It will be interesting to see Bitcoin sentiment shift as newcomers realize that the bulk of Bitcoin value is held by a small handful of early adopters, and that the bulk of Bitcoin mining capacity is held by a small handful of large mining companies. Cryptocurrency proponents are trying to get ahead of this by reframing Bitcoin as the people's currency, or an opportunity for average people to get rich while sticking…
You assume that early adopters still hold their Bitcoins. You are (mostly) wrong.
Re: Bitcoin hits $1T in market value
#6It will be interesting to see Bitcoin sentiment shift as newcomers realize that the bulk of Bitcoin value is held by a small handful of early adopters, and that the bulk of Bitcoin mining capacity is held by a small handful of large mining companies. Cryptocurrency proponents are trying to get ahead of this by reframing Bitcoin as the people's currency, or an opportunity for average people to get rich while sticking…
Would it be much different from inheritance? Right from birth, one person is destined to be poor while the other destined to be a millionaire.
So I as a parent from the fruit of my labors have no right to help my children through life?
Also please note most millionaires in the world are self made, with over 80%. Of the other 20% most made it to millionaire status before receiving an inheritance. Also note the people you most worry about, the ones who get money young, usually plow through it and leave nothing for their children.
Re: Bitcoin hits $1T in market value
#7It will be interesting to see Bitcoin sentiment shift as newcomers realize that the bulk of Bitcoin value is held by a small handful of early adopters, and that the bulk of Bitcoin mining capacity is held by a small handful of large mining companies. Cryptocurrency proponents are trying to get ahead of this by reframing Bitcoin as the people's currency, or an opportunity for average people to get rich while sticking…
You assume that early adopters still hold their Bitcoins. You are (mostly) wrong.
Has anyone ever estimated how many btc might be locked up in early adopter wallets who have since lost the passwords or the hard drive, etc?
Re: Bitcoin hits $1T in market value
#8It will be interesting to see Bitcoin sentiment shift as newcomers realize that the bulk of Bitcoin value is held by a small handful of early adopters, and that the bulk of Bitcoin mining capacity is held by a small handful of large mining companies. Cryptocurrency proponents are trying to get ahead of this by reframing Bitcoin as the people's currency, or an opportunity for average people to get rich while sticking…
Comparing the Gamestop fiasco to Bitcoin, Gamestop just looks like normal market activity, where Bitcoin looks like criminal pump and dump activity... in my opinion.
But bitcoin has been "pumped and dumped" so many times now that most of the people who were early investors have already cashed out long ago.
What you are left with now is all the people who bought the bitcoin after it had already been pumped and dumped, and they aren't willing to sell it for less than they bought it for.
This means that the perceived value of the asset is now based on the notions held by millions of people who are holding and don't want to sell.
Re: Bitcoin hits $1T in market value
#9Re: Bitcoin hits $1T in market value
#10Calculation of market cap is interesting, because we (almost certainly) know that a good fraction — as much as 20% — of mined bitcoins are lost forever through accidental key destruction. So you have to adjust this market cap by the remaining, probably liquid, pool.