Bitcoin Forum

Any idea how many billions of dollars off total major cryptocoins' capitalization has been lost during last 3 days in this dump?
It has to be huge amount. I know the market cap is just virtual number, but still its staggering. If this happened in real world's markets, that would mean epic disaster for global economy.

~$25 Bn. Coinmarketcap gives the aggregate market cap of the crypto world.
It has dropped from $85 Bn to $60 Bn, and it is still going down.  :)

http://coinmarketcap.com/charts/

This just implies that bitcoin is not yet distributed to millions of people it just means that majority of bitcoins are at the hands of the whale. Time will come when bitcoin  vastly distributed to holders there will be a stable trading just like gold.  And when that time comes bitcoin becomes a normal currency being used by the majority of the people in the world.

panju1: thanks for the link, interesting charts.

20-25% loss of total market cap is not that bad yet. looks like bitcoin returned back above 50% of market share, and biggest market share losers were litecoin and ripple.
So bitcoin seems to be coming out as relative winner from this crash.

Xester> it will take probably several  years. but if more people buy BTC for long term investment, supply of tradable coins on the market will become more dominated by trading whales. So maybe it needs to be not just distributed, but also much more widely used for buying stuff and other real life transactions.

Bitcoin's market cap dominance versus the rest (i.e. altcoin industry) doesn't say anything ~ from there Bitcoin hasn't lost anything, nor gained.

If you look at all the altcoins that have seen their market cap increase with billions of dollars, and look at how their actual usage is doing, then nothing has changed.

The slight increase of their transactions comes solely from the fact that people send coins from their wallet to an exchange, and vice versa. All usage is purely speculative.

Looks all of the chart will rebound in this time, the bitcoin chart get green candle and more people will be trying to grab more bitcoin and make the market cap will increase again.
Don't worry all of that just common thing in crypto. It's always bounce

We see an example of speculation on the market of cryptocurrencies. I'm not going to pay attention to it. If there is no panic then the price will quickly return to 2000-2200 USD per 1 bitcoin. If the price will fall and then it will be a good opportunity to buy bitcoin and earn in the future.

You can easily ascertain market cap on CoinMarketCap for every cryptocurrency over any period.
By the way, this can never happen in real economy because estimated market caps as we measure in case of cryptocurrencies won't happen in real world. In real world, market cap is actually backed by equivalent money suppose if we say market cap of Google is $40 billion, it actually means total asset worth of Google is $40B. That is the reason why we don't see volatility as of Bitcoin in real world.

Last three days ? I am sorry I am watching down fall only yesterday and today. Moreover what is the significant of this discussions ? We are all well aware of how quickly bitcoins do bounce back usually and market capitalization are just number for any comparisons. This discussion may create panic with beginners, I believe we should give room for that.

Bitcoin is always bounce back in quick time. So, we never need to worry about recent down falls.

Honestly, I hope the price drops more. The lower it is, the more stable it will be. There's no significant problems with Bitcoin at the moment besides the hype. We are having a price correction, and this will mean coins are even cheaper, for even longer. I'm personally waiting for a sub-$2000 price tag before buying a couple.

After a short period of stability, we will see stable growth, especially with the new positive news coming from miners and large Bitcoin players.

Who else is with me? :D

Beginners may doubt now since they only invested on seeing the btc value this week,but soon they can realize that its part of btc every downfall will surely have arisen in time ,we just need to save more btc by then we can enjoy the hyoe again.

That's precisely what's happening, it's gradually climbed beyond $2,200 and hopefully by Monday back to its peak or even better. I don't blame the panic sellers, they are mostly newbies and are easily misled by negative news in the media.

Yes, we must always work in favor of saving new innocent investors. Instead of showcasing some wired facts of bitcoin economics, we must focus on how quickly bitcoin may get back into another wave of appreciations which will be leading prices to reach $3000 and then $5000 levels.

Moreover, we may try explaining people about the advantages of trading bitcoins among these high fluctuations then they will start believing into bitcoins which might help them to keep their faith.

no no you can't count marketcap loss like that because the marketcap is based on all the 16M coins, and the calculation is off, because only a little fraction of 16M coins is used in all the exchange, or you really think that investors are trading with 16 millions coins? this is stupid to think you know

If I had a coin listed on yobit and then I was trading it with myself pumping it's price up to $100 and if it had a total supply of 1 coin then the market

Share for my coin would be $100 I hope now you understand what market share means, however if you look at the current market you'll see how

The dumpers a.k.a whales cashed out and dumped on unsuspected poor bastards, now they just hold some useless coins, if you are holding Bitcoins

then it's better if you keep holding them because unlike all the shitcoins you could actually sell later to profit on it.

Afaik, ripple is a privately-held coin and most people only use it as an investment and no one really bothers much to use it like bitcoin. Aside from that, only a few services use ripple as a payment method since its true value is only for investing. All the money lost from altcoin would be converted to bitcoin soon.

do you really think that investors are trading with 5 billions of Apple shares? (for instance) this is stupid argument you know ;)

and what about margin trading?

Since the market is supported by no countries economy, it's understandable why it didn't cause any financial problems but it really bounced back almost immediately showing how strong it really is.

I'd say the rise up to the recent peak was more staggering. Whenever you see those phenomenal price rises (100%+) it is natural to see a correction. People will get nervous when the peak starts dropping and there is a domino effect - landing around the $2,000 per bitcoin like right now is still a great thing.

Total market capitalization of cryptoworld is still only a peanut compared to the even smallest sectors in finance. Even though the hype makes supporters to outrun themselves in the valuation of single projects, the general market will grow over time.

people believe that they have earned a good profit from bitcoin and altcoin and they decided to sell all to get fiat. It caused a chain which makes panic people sell all their bitcoin. Anyhow, no need to worry, bitcoin will soon increase its prices

unfortunately, bitcoin is only in internet so far and its not affect in the real world too serious but maybe if bitcoin is really used by all country, it can give big affect for the global economy.



maybe its true that investors are trading with 5 billions of apple shares because we don't know what is the true with the news in out there and we only see the things that happen in market exchange. actually i don't know about margin trading and i think its too dangerous for me to play margin trading, its really need big capital to make good profit.

But wouldn't that take even much longer to happen now, considering that even after this dump, prices are still much higher than a few months ago? A large number of "independent holders" are people from poorer countries working abroad and using bitcoin to send remittances, buying a few bits every now and then. The increased transaction fee has already put off some and it's becoming even more unlikely they'll be buying some more with that rate.

market share
noun
the portion of a market controlled by a particular company or product.

So that's not the market share of anything, it's the market cap, which is unrelated.  Bitcoin's market share is a percentage of the total cryptocurrency market (which counts pseudo-cryptocurrencies like Ripple), while its market cap is a consistent number, which is just the supply multiplied by the price.

Furthermore, there are several inherent flaws in the concept of market caps for currencies, including:

-Not all of these coins are actually traded, and it's difficult to compare how much the total supply would actually be worth.  If I held all of the ETH in existence and I tried to sell it, I wouldn't actually get ETH's market cap for it - far from it.

-The scenario of having one coin on an exchange and selling it could be the same if the coin had an extremely high supply.  Say that the altcoin Devs hold a majority of the coins like Ripple - then the market cap becomes meaningless because not all of it is available.

I could equally create an altcoin with a supply of ten octillion and list it on YoBit (shouldn't be too hard).  I sell one to myself for 100 dollars and boom, the market cap is one nonillion.  Not too hard, was it?

This has nothing with global economy, its just a bad day day might turn into a bad week for trading, but in the general people does make money no matter the market cap at all, crypto is different other investments, with that said dont worry with those, because crypto started with few buck and now is worthing bilions.

Yes and I think the loss was inevitable so we shouldn't ride on these market gymnastics to predict doom for Bitcoin because in no time theprices will recover again and hopefully the trading maker cap will pick up too.

No it is not that big as you think.
The British pound lost close to 30% against the euro last year.
If we stretch the numbers we can get close.

Was the fall of the sterling a disaster for the global economy?
If it was I missed it.

And let's not even compare the two of them.

So if the British pound lost more than 30% of its value does it mean we should neglect Bitcoin's loss of market cap? So why don't you want us to compare the two of them?

Because bitcoin is counted in billions and the pound if we refer only to the m3 in trilions.
Bitcoin does 300k transaction a day , the pound ... well there are 60 millions british who pay daily with the sterling.
Bitcoin is represented by a few millions userbase , the pound by a g7 country with nuclear weapons.

Should I keep going?

True! the decrease in market cap in the real economy would have been disaster but in crypto market it means profit booking and happy customer. So the game is different here than the real world economy.

We have seen a huge increase in the market cap of most of the major cryptos in last week as people were investing heavily. Now that they have reached their profit goal, they are just pulling up their investment to book profit and again investing in lower price with the hope of the higher price again. But they are only a minor numbers of the investors. Most of the bitcoin investors like me, think of long term and hence they are invested in bitcoin since more than a year which make the difference.

This would not mean an epic disaster for the global economy at all. Billions are added to or lost from the stock market on a daily basis. Crypto is still tiny and insignificant compared to most stock investments, and a loss of that amount would not even make a blip in the s&p 500 or DJIA. All that said, it's no surprise that bitcoin crashed from $2800 to $2000 and had a rebound to roughly $2300 now. It was well overdue for a correction. I think it is still on its way up in a bubble, but not yet at its peak. I think it will crash somewhere around $5k, but possibly higher. However, I would be very surprised if it went significantly past $8k, which would reflect a larger bubble than the one we saw in 2013.

Not true at all.
The "market cap"  of S&P 500 is 21 trillions,  a 1% change means 210 billlions or 3 times all the market cap of all altcoins and bitcoin combined.
Throw in another 4 trillions for dow and a few trillions for FTSE.

In the dark week of the 2015 the us markets alone lost 2.1 trillions.
And there was no global disaster.

Brexit wiped off another 2 trilions.
And still nothing.

$4bn in bitcoin i think. but to be honest that is rather profit taking. I would hope to see bitcoin back up around 3k per coin.

The losses you are referring to is not a real one rather a nominal one so it does not really change anything and the reason is because for example if I bought at $2600+ but now it has fallen to $2200+, in the face value, I have made a loss but in the real sense I haven't because the coin is still in my wallet which makes it unrealized gain. And the realized loss that was made, the gain on that was not made by people in mars just same traders who happened to be there at the time to buy low.

Well market capitalization is all about the market value of total coins, we cannot compare it to the quantity of coins we bought and the quantity of coin we are holding during the fall of value of that coins.  The decrease of bitcoin market capitalization simply means the value of bitcoin we are holding is getting lesser and it do matter if we aim to get profit when the value of coin increase.

Why the "if"? ^^
It happens. And a lot.
And on real life goods and supplies, especially raw materials.
But you'll always see the traders and their dogs saying that "it's just the market" and that traders aren't at fault in any way because "without us there would be even more volatility" ahah

Sure
Because there is a rational explanation for 20% of loss of money invested in something that hasn't changed the slightest in the last couple months...

That's what we are all hoping for but the loss on the market cap seems to be making the news instead. Bitcoin has started recovering from the supposed dump and very soon we will head into higher heights.

I am pretty sure at the peak it was almost 90 billion dollars, while right now it is almost 80, so it wasn't too much compared to the fact that it went up from like 40 billion a few weeks back. To be honest I have no ideas how that much money can get into crypto that fast, the adoption can't be that massive and fast, there must something else be happening though I am afraid that the thing that is happening can bring the end of all the cryptocurrencies. Let's hope I'm wrong though. Also the thing that I noticed is that bitcoin gains back it's dominance, coming at 47% now while it was like 43% at one point.

Since we are seeing big time investors may be there is a link between global stock market and the alt coin market,people might book their profits in the alt coin market if they see a heavy correction in stock market so that they could buy some stocks at a lower price and average the entry point,who knows ,things are changing here as we are seeing huge investments coming into the alt coin market.

And hey, it is not happening in real world's market so don't need to be afraid. Market cap might be a big number, but the price are still good for me, especially bitcoin. It lost a $4 billion in market because of the price correction but it is still good. It may be a disaster in real world, but luckily it is the virtual world.

The global equity markets are driven by institutional investors. Big pension funds and hedge funds pour in billions of dollars into equity markets. The investor base for crypto, especially marginal alt coins, is very different.

Coins rose by a lot in a short time. It's Just the market correcting itself.

The total market cap for all these altcoins is still relatively small and wouldn't be felt in the real world of investments where billions of dollars are being moved every so often. It's not really a loss, but a transfer where people are just looking to move their money from one place to another where they deem it safer or if they think they can still squeeze profits from.

... and after only a week, we are back at new all time high market cap, nearing 92 Bln. what a madness  :o

I believe this is the result of the uneven Bitcoin distribution. Hopefully, there will be a time when Bitcoin is distributed to users and this is the period in which Bitcoin would succeed.

Yep. The volatility in cryptocurrencies is natural. It might dump but also it has the ability to pump much higher than what we expect. It is true that the digital world's market is very different from real world's market. If somehow Bitcoin and also the other cryptocurrencies would attain great usage in the real world then it will be a table turner.

Things have started to turn around again price is slowly going again on 3000, will this time go over or we will see another break to lower its price.
But for now see that again exchanges are in full with lot of investors wanna to be there so they can sell when and if it goes over 3000.

But now i think we will see so much demand for buying and not for selling. Increase is like last month around 4% per day.

I think on this wave bitcoin will reach 3000 or maybe more and again we will see its fall to about 2500. Afterwards it will go up again, it will be cycling so to the end of summer i think.