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Author Topic: Understandin the importance of Bitcoin market cap & why BTC is unique  (Read 417 times)
contactluis
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March 24, 2013, 01:28:46 AM
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I've seen many people posting that don't quite understand how/what market capitalization is and how important it is to Bitcoins.  Calculating market cap for Bitcoins is very easy. Take the Bitcoins outstanding (about $10.9 million) and multiply it by the current price (currently at $63) and the resulting $686 million is your market cap. For comparison purposes Facebook market cap is $6 billion. Market cap is important because the larger it is, the more likely that investors will invest in it because of the perception of liquidity and stability.

Below is a chart that demonstrate how market cap increases for Bitcoins.

http://img685.imageshack.us/img685/7928/marketcapbitcoins.png


Probably because it is Saturday, but I'm so surprised that I haven't been able to find a news about how this morning the market cap for Bitcoins dropped from $744 million ($68 price) to $572 million ($52.35 price) and then climbing back up to $738 million ($67.5 price) in less than 4.5 hours. I've never heard of that happening and I'm a retired financial analyst for a brokerage firm. THAT IS INCREDIBLE and is further proof that Bitcoins don't follow normal rules. It is unique from every financial investment product ever created. 
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zif33rs
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March 24, 2013, 01:36:50 AM
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+1 good post..should not be in the newb section....or maybe stickied in here..dunno.

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contactluis
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March 24, 2013, 01:50:34 AM
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+1 good post..should not be in the newb section....or maybe stickied in here..dunno.

Thanks, this was my first post. You are welcome to move it or post it in the main forum.
The chart link is http://img685.imageshack.us/img685/7928/marketcapbitcoins.png
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March 24, 2013, 03:40:19 AM
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+1 good post..should not be in the newb section....or maybe stickied in here..dunno.

Thanks, this was my first post. You are welcome to move it or post it in the main forum.
The chart link is http://anonymouse.org/cgi-bin/anon-www.cgi/http://img685.imageshack.us/img685/7928/marketcapbitcoins.png


Nice chart,

Since you have been in finance, forgetting FinCEN regs, Do you think it would be possible for an average Bitcoin Nerd to place a small advert in a financial paper to create some kind of bitcoin investment fund, that would offer investors interest based on bitcoins appreciation? What kind of regulatory nightmare would it be?



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March 24, 2013, 03:57:15 AM
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Whitelisted. OP, please feel free to post at other subforums. *hint - Bitcoin Discussion*

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contactluis
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March 24, 2013, 04:31:08 AM
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Since you have been in finance, forgetting FinCEN regs, Do you think it would be possible for an average Bitcoin Nerd to place a small advert in a financial paper to create some kind of bitcoin investment fund, that would offer investors interest based on bitcoins appreciation? What kind of regulatory nightmare would it be?

[/quote]

No, as a Bitcoin nerd you would probably go to jail and/or sued. Do not try to invest other peoples money/Bitcoins, even if you make them money, the SEC will knock at your door. I love the privacy issue with Bitcoins, but as Americans we should be thankful that our government offers protection against incompetent or malicious people who want to invest your money.  I'm not saying you are either of these, but how would somebody know your intentions if you and Bitcoins are not regulated. There will be a time when there will be plenty of Bitcoin investments (options, short selling, etc.) but that will require a lot of start up capital and the regulatory nightmare.
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