Bitcoin Forum

Marketcap= indicator of nothing  ::)

Market cap = total number of coins in circulation x coin price. So coin price is indicator of nothing?

Meaning, it's still only worth a fraction of what a tech giant is. (~500B range)

Yes, btc is still worth a fraction of its true potential. Cap is the only number you have to compare it to giants.

I suppose ultimately it isn't any different than a tech giant valuation, try selling every single Apple share and see where the price finishes up, but I do wish there was another way of doing it.

There are degrees of silliness to it, especially when it comes to alts.

Its not an indicator of nothing it is best way to compare different cryptos because knowing the price alone tells you almost nothing without also knowing how many there are.

Maybe its misnamed, its not good for comparison of crypto to companies

It will keep on rising!  See how people panic buys bitcoin.  In just a couple of day, bitcoin reach $2400 and soon $3000.  Well, some exchanges already selling above $3000.  Probably we will see $80,000,000,000 BTC market cap at the end of the year.

Rather than give everyone a headache reading through the zeros, could you not simply have said $40 Billion?

You sure about it? Market cap is basis of the price today and that's why we are enjoying the current price of bitcoin and those time to come. And this is just another success for bitcoin for hitting 40 billion of investments in dollars. For the next years there will be more to come so don't say that it is an indicator of nothing.

I agree completely. The price of a single coin doesn't say much.
1 bitcoin is very close to reaching twice the price of gold. Except "the price of gold" depends on how much gold. 1oz is just an arbitrary fraction and even 1 BTC is.

We should compare the market cap of BTC with all giants, including (the total market cap of) gold: $40billions vs $7.5trillions. It's still very far away and can grow a lot more in several years.

except the fact the market value of a tech giant and the market cap of Bitcoin, as defined as number of coins mined x price, have nothing in common and shouldn't be compared.

it is like comparing your weight with someone else's balance in the bank account, they have nothing in common.

it actually is indicator of NOTHING. at the very least it is the worst way to compare different cryptos because with altcoins you don't ever know what their circulating supply is. a random altcoin can easily report having billions of coins but in fact have 1 or 2 million coins in circulation and that billions of coin supply creates a fake big marketcap which indicates nothing about it

Bitcoin market cap cannot be compared to Gold market gap. There is a high difference between the two. But then you should know Bitcoin has been there for less than a decade and Gold is there for more than a century, so both of their volume could not be compared or match. One thing here is sure if Bitcoin is given a time of one hundred years, it will way pass the 7.5 trillion dollar mark.

I'm not worried about the high marketcap as much as I am by the speed of increase, to me that is true signs of a bubble. I mean bitcoin can get to 100k$ and I wouldn't call it a bubble if it rose organically rather than the current pump we are seeing.

I wouldn't say it indicates nothing. It usually indicates nothing good! I think the ratio of circulation to supply is a great indicator of dumping potential (usually applied to a newer coin) and simultaneously yet inversely, perceived value (typically for something more mature). By perceived value I mean hodling value, of course.


But comparing market caps alone is worthless at best. Comparing market cap to corporate valuations is fun but also apples to oranges.

Organic behavior will always defy any attempt to simplify. Until you apply this statement to itself. Welcome to the rabbit hole.

For me its not a bubble but countries like Japan, Korea, China and India are buying a lot of bitcoins now that why the price doesn't look like organic. Take note, that a whole country now is buying, not just individual investors who are just pumping it up like we seen before.

$3000 by the end of the day

can any one explain why bitcoin bullish  ???
What happened to it ??

It's perhaps cool and exciting to certain people, but it's still peanuts in my eyes. I will start to make a small jump of celebration if we happen to hit the $10,000 mark per coin. Bitcoin is just doing what I expected from it since the very beginning, but in a faster way. Eventually people will look back at current levels and regret not having bought more coins, or regret that they have sold their coins at current levels. It's a cycle -> people selling -> price goes up -> people regret having sold.

This is a remarkable achievement. Bitcoin prices and also very high transaction volume. We know right now that people are getting attracted to bitcoin. If so then should the government of a country have started preparing bitcoin as the currency they recognize.

40B is  drop in the bucket for what BTC can do vs banks and financial mkts.

400B is a good sized company.

get back to me when its 4T~40T, takeing a good chunk from gov/expenditure, financial mkts, banking, gold

They need to recognize now there is no chance for government because already they are seeing the potential of bitcoin market cap. Large market in the industry bitcoin is the currency where it is accepted by every government.

Seems Bitcoin is worth only Bitcoin is worth 0.64 Zuckerbergs now.   We seems to move closer to half Zuckerberg then reach a Zuckerberg parity.

Noooice (Well slightly less than 40 billion again) That said that is a good market cap
Zuckerberg is laughing all the way to the bank but the Winkeveli are going to get the last laugh ^^

Right now with the current price we have reached the quoted market capital. This could change depending on the price varying with respect to time. Also the entire coins as calculated is not yet mined, so this will increase much higher when the entire bitcoin gets mined.

Yes but bitcoin is not like any of those projects, bitcoin is not only a project but money so its potential is way higher than any of those companies, that does not mean bitcoin is going to materialize that potential, but the potential is there and for those that believe in bitcoin that is a number that indicates we must invest even more since there is a lot of room to grow.

Just you wait and Bitcoin will be more than zuckerbergs worth.  Bitcoin is just starting, has not even reached 25% of global saturation, there is a lot of room for this currency to grow so I bet just a few years from now Bitcoin will be double of what Zuckerbergs worth.

BTC to 10K is a given now inmho

BTC Market cap to 1T ~ 21T also looks pretty likely.

ETH will make FB be measured in fractional VB's

FB = 0.25 VB.

I wonder how Zucks, Gates etc feel about ETH, BTC takeing over the IT market as to value, I mean FB, Google, MS, oracle are going to be side shows a sort of negligible rounding error in about 10 years, and there is nothing they can do about it as open source is not compatible with there money making model.

They could have made a crypto some years ago....but it appears all the "smart" people in SV/IT missed the impact and importance of cryptos.

Cryptos arrange society/the world.

FB de-(rranges) social interactions, MS produces and OS that arranges some software to run, google arranges searching ok some value there.

2025 Here is my copy os windows 95, now give me a house for that.....see how that's not going to work. vs

Here is my BTC I purchased in 2011 for $5, give me house....ok and here is you x 100K change.









 

And less than two weeks later we are once again past the 2800 per bitcoin and the market cap is at 46 Billion, how big do you think it is going to be the market cap at the end of the year? My prediction is we are going to see a market cap of 57 Billion at the end of the year.

if you want to compare at least you should compare bitcoin to stock/share of these companies not the product.. like saying here is a Microsoft share that i bought in 95, give me a house!

also i don't get what e.t.h had to do with anything that you just jammed it in your comment here ;D

I don’t think the comparison is fair either can you imagine someone that bought microsoft shares back in the seventies or the eighties, while I don't like microsoft products because  I think they are overpriced, there is no doubt that microsoft is a very valuable stock.