Bitcoin : How do we think about market cap
I have been wondering about the meaning of the marketcap for crypto recently.
My aim is to understand what’s the meaning of marketcap and how it is compared to other assets.
The general formula for stocks (used also in CMC) is: Total Market Cap = N.of Pieces * Unit Price
For Bitcoin or other cryptos we can easily check CMC.
I did the same for gold in order to understand. I ckecked the data first and found that the total marketcap of gold is 7.8Trillions.
Now for the quantity of gold.
In the world are mined up to now a total of 131.700 Tonnes of Gold. This equals to 171.300.000.000 Grams of Gold.
So if there is a variation of 1USD for a gram of gold, this means there is a variation of 171.300.000.000USD in Market Cap.
Is this correct? Those numbers doesen’t really make sense in my mind. Or am I correct and my logic does not have flows?
Bitcoin
Bitcoin is a distributed, worldwide, decentralized digital money. Bitcoins are issued and managed without any central authority.
FindCrypto scans the web for the latest Bitcoin news, so you can find all the latest and breaking news in one convenient location.Author: Faghe
Score: 8
Don’t forget to share the post if you love it !
