Growth in the marketcap

[Vaskiy]

With time the growth in marketcap of cryptocurrencies were big compared to the leading centralized financial service renders. Looking the data, what Bitcoin has reached in a three year difference never happens with any of the centralized system. The highest growth among the centralized system is a rise of $120bn. Maybe by the falling year ethereum will come next to bitcoin.

Image Source : Google

[The Sceptical Chymist]

That might look impressive, but that infographic is basically comparing apples to oranges, depending on whether you consider bitcoin and ethereum to be currencies or assets.  Bitcoin is kind of a hybrid IMO, whereas JP Morgan Chase is a corporation whose stock has that market cap of $511 billion.  One is a digital currency and the other is a stock, and they're two completely different things.

In addition to that, what is the importance of the market cap metric?  I know what the term means, but how important is it to us (the members of the forum) and why does it matter if bitcoin has a greater market cap than JPMC?  To me, it makes little difference since I'm not looking to buy out JP Morgan nor trying to corner the market in bitcoin.  The market cap metric to me is just a number that Wall Street uses for dick-swinging contests.

[paxmao]

That might look impressive, but that infographic is basically comparing apples to oranges, ..

I agree with the principle, you are comparing a currency / commodity with a company whose value is usually appraised at either marketcap, book value or by discounting cashflows.

However, there is some value in comparing these magnitudes just to get an idea of the magnitudes that we are speaking about, some short of size comparison like the one you can see in some videos about sizes of objects in the known universe.. A star is not a nebula, but just to give an idea is fine.

[jossiel]

Comparing it with another company like Facebook. Total's FB marketcap as per https://companiesmarketcap.com/facebook/marketcap/ it's $917B.

While bitcoin, total's marketcap on its current price of $57199 is $1T. Bitcoin's growth in market cap can no longer be hidden and these companies are noticing its growth.

[Charles-Tim]

The link above only took me to google search engine.

Maybe by the falling year ethereum will come next to bitcoin.

Is ethereum completely decentralized like bitcoin? There are many decentralized currencies now existing that are not completely decentralized, all the altcoins fall into this second category, although the altcoin prices are not centrally controlled.

I may not be correct about this, but what about EIP, is it decentralized? BIP is determined by bitcoin communities like miners, is it like that for ethereum?

In addition to that, what is the importance of the market cap metric?

I remembered when bitcoin increased in adoption in late 2020 and early 2021, this was the link I did saw used to compare bitcoin with other asset class:

Top Assets by Market Cap

So I guess it is just to know the extent of adoption of each asset.

[Sayeds56]

Comparing it with another company like Facebook. Total's FB marketcap as per https://companiesmarketcap.com/facebook/marketcap/ it's $917B.

While bitcoin, total's marketcap on its current price of $57199 is $1T. Bitcoin's growth in market cap can no longer be hidden and these companies are noticing its growth.

Bitcoin growth has been prenominal and other asset class can match it during the past one decade. Imagine what will be market cap of Bitcoin( 20 trillion approximately that means around 15% of total world GDP and almost equal to USA GDP) if it hits 1 Million dollar which is likely to happen in coming years after the next halving. Our grand children will dream if they had owned one Bitcoin.

[crwth]

If we are basing on the market capitalization, it's just going to be total dollar market value, right? So based on their stocks and with currency (if it's crypto). It can be compared if it's only by market cap, but there wouldn't be any meaning or reason for comparing the two.

If we are talking about the dollar value, that's okay. It's like knowing how much money is valued and "invested" or "can circulate" or something like that with the current price. That's just how you can calculate how valuable the market of a particular asset is. So to check the market cap of companies, it's going to be the "worth" of the whole company. It's a different thing. But in terms of value, it just doesn't make any sense to compare.

One is stock-based, and one is currency. I think it's better to compare it to equity, right?

[oHnK]

I'm confused on the basis of your data collection.  How can you compare companies by currency?  Do you think it is appropriate to compare a factor of production with a product?  Moreover, the basis of comparison is its market capitalization.  When comparing something, we should take a similar basis, not contradictory things.  Indeed, at first glance we can catch that between centralized and decentralized services can be compared, but it does not mean that the provider is the comparison data but the users.  For example, compare Crypto users with Fiat users, then the comparison is worth it.

[electronicash]

apples and oranges i guess but this proves that in a short period of time BTC beats them all that in just a decade a lot of money is poured into BTC cap than those popular companies like JPM and wellsfargo. its quite a journey for crypto that ETH had surpassed them too.

by another 10 years, all the ones on top could be replaced by new crypto smart contract platform.

[Lucius]

If we take into account how the market cap is calculated (supply x price), then even the data shown in this way are not accurate - because if several million BTC are irretrievably lost, then we are actually far from the actual $1 trillion MC. But people are fascinated by big numbers, and numbers have become a symbol of success - because some might say "Bitcoin has beaten banks and greedy corporations - we are worth more than them".

by another 10 years, all the ones on top could be replaced by new crypto smart contract platform.

Do you think that some new coin will appear that will occupy the top of the list and become the new crypto king? I think even 10 years is too little for a new coin to become planetarily popular, especially if it doesn't exist yet - Bitcoin was created in 2009 and some say it's still in its early stages.

[fiulpro]

With time the growth in marketcap of cryptocurrencies were big compared to the leading centralized financial service renders. Looking the data, what Bitcoin has reached in a three year difference never happens with any of the centralized system. The highest growth among the centralized system is a rise of $120bn. Maybe by the falling year ethereum will come next to bitcoin.

Image Source : Google

The consideration of Bitcoins in the same category as stocks and centralized assets is something that is not really a good idea but I do think it's really impressive for bitcoins. On the other hand it's showing the dominance of the crypto market which is considering how hostile china had been and how Biden made statements about bitcoins as well, the stability of cryptocurrencies are also important for countries like Afghanistan where they are going through a lot of unrest in terms of politics, economics and social human rights as well.
But are we really using the same equations for both centralized and decentralized currencies???

[Bitstar_coin]

I don't think the comparison is the main point what the image is trying to portray is the tremendous amount of success btc has achieved within a short time frame in the midst of giant companies like the aforementioned, it just goes to show where the money goes, what people in this time and age prefer to put their money on, btc has clearly outperform the rest from 2018 to date, this is the bottomline.

[mu_enrico]

I'm a bit skeptical about the marketcap as it's not a good metric if you want to be precise. There is this "real liquidity" metric that is difficult to measure.
Why I'm skeptical, because, usually, more liquidity means less volatility. So if you compare volatility let's say Facebook (nearest marketcap to BTC according https://companiesmarketcap.com/), both should not vary so greatly. I think real liquidity of BTC currently is still lower than FB.

Anyway, I think the juice of this thread is about Jamie Dimon's comment