..... and .... a quarter billion dollars worth

[DeathAndTaxes]

http://blockchain.info/charts/market-cap?timespan=all&showDataPoints=false&daysAverageString=1&show_header=true

The value of the Bitcoin money supply exceeds $250,000,000 USD for the first time.

[n8rwJeTt8TrrLKPa55eU]

Only thing nicer than counting in millions...is counting in billions and trillions.  Must. Start. Practicing.

http://www.youtube.com/watch?v=HZmafy_v8g8

[Stephen Gornick]

The value of the Bitcoin money supply exceeds $250,000,000 USD for the first time.

A quarter billion here, a quarter billion there, pretty soon you're talking real money.   

Now what I'm waiting on is for some merchant to credit Bitcoin for them having a really good quarter.  Dwolla was what I figured would be the first to do that but they've since distanced themselves from Bitcoin.  Maybe a ZipZap (a service BitInstant uses) or something like that.

[Hexadecibel]

DeathandTaxes.... your.. post count...

[jerfelix]

http://blockchain.info/charts/market-cap?timespan=all&showDataPoints=false&daysAverageString=1&show_header=true

The value of the Bitcoin money supply exceeds $250,000,000 USD for the first time.

Thank you for not referring to it as "Market Cap".

[misterbigg]

Thank you for not referring to it as "Market Cap".

I hear people do this all the time, why is it inaccurate?

[DannyHamilton]

I hear people do this all the time, why is it inaccurate?

Market capitalization represents the public consensus on the value of a company's equity.  Bitcoin is neither a company, nor does it have any equity.

[DeathAndTaxes]

Exactly.  When measuring the Euro money supply in dollar terms nobody (and I mean NOBODY) would say something as idiotic sounding as "the market cap of the Euro is $xxx trillion USD". Likewise market capitalization isn't used to refer to the value of all gold (gold supply) either.  It is simply a completely wrong term that for some reason has stuck.

http://en.wikipedia.org/wiki/Market_capitalization

Market capitalization (or market cap) is the total value of the issued shares of a publicly traded company; it is equal to the share price times the number of shares outstanding. As outstanding stock is bought and sold in public markets, capitalization could be used as a (proxy) proxy for the public opinion of a company's net worth and is a determining factor in some forms of stock valuation. Preferred shares are included in the calculation.

[misterbigg]

Market capitalization represents the public consensus on the value of a company's equity.  Bitcoin is neither a company, nor does it have any equity.

What is the meaning of comparing Bitcoin's total value in dollar terms against the market capitalization of equities? For example, saying that Bitcoin is only as large as a micro-cap stock?

What does it mean to compare Bitcoin's total value against the total above ground value of a precious metal (gold or silver)?

[cypherdoc]

Market capitalization represents the public consensus on the value of a company's equity.  Bitcoin is neither a company, nor does it have any equity.

What is the meaning of comparing Bitcoin's total value in dollar terms against the market capitalization of equities? For example, saying that Bitcoin is only as large as a micro-cap stock?

What does it mean to compare Bitcoin's total value against the total above ground value of a precious metal (gold or silver)?

stop asking questions and move along.

[Stapleddiet]

At times this forum is really worth watching.

[sublime5447]

Enjoy it while it last.

[bbit]

<----

[evoorhees]

I agree "market cap" isn't the proper term, technically. But I admit I use this term all the time. We need a better term if we can't use this one.

[misterbigg]

Previous troll posts aside, when I discuss Bitcoin with others who are less enthusiastic about cryptocurrencies, there is inevitably a discussion of the total value of Bitcoins in circulation (quarter billion USD at this moment) relative to the "market capitalization" of other equities. Is this a valid comparison? If so, what conclusions can be drawn? If not, why is it invalid?

I'd like to have an intelligent sounding answer when these topics come up.

[Melbustus]

I agree "market cap" isn't the proper term, technically. But I admit I use this term all the time. We need a better term if we can't use this one.

Maybe something like: "Aggregate Fiat Valuation" (AFV for short)?

[Killdozer]

In your face, people who whined about early adopters with it was 3$/BTC for months...

[Melbustus]

Previous troll posts aside, when I discuss Bitcoin with others who are less enthusiastic about cryptocurrencies, there is inevitably a discussion of the total value of Bitcoins in circulation (quarter billion USD at this moment) relative to the "market capitalization" of other equities. Is this a valid comparison? If so, what conclusions can be drawn? If not, why is it invalid?

I'd like to have an intelligent sounding answer when these topics come up.

The literal term "market capitalization" is not really incorrect, but the fact that the term is universally applied to equities makes it confusing to apply to bitcoin (or any currency/commodity) as well. The problem stems from equity valuation (market cap) being understood as the net present value of future earnings plus net current assets. That does not map to bitcoin.

[minorman]

Plenty of room to run:
http://demonocracy.info/infographics/usa/us_debt/us_debt.html

[phelix]

I hear people do this all the time, why is it inaccurate?

Market capitalization represents the public consensus on the value of a company's equity.  Bitcoin is neither a company, nor does it have any equity.

Why should it not be possible to extend the concept of market capitalization to something that is not a company?

Number of stocks * stock price  ---->  number of coins * coin price


I think we will have a hard time coming up with something even remotely as easy to understand.