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by phaed 3238 days ago
$67,285,852,182 market cap. That's how the sense is made.
1 comments

Those "market cap" numbers are utter garbage and completely inaccurate.

How is that number calculated?

The actual market rate is only determined by active users who send a buy order though an exchange. If there's no demand, the price instantly tanks to 0 in a few seconds - the exchanges guarantee nothing.

What's the demand behind BTC? Speculators?

What happens when the speculators cash out because something better comes along?

The number is calculated by number of bitcoins in existence * price of bitcoin.

Same as the stock market.

Not that I think it is worth near that much cause it is 99% speculators, but I would assume it is based on current market price * current BTC withstanding just like how stocks market cap is based (subbing BTC with shares).

> What happens when the speculators cash out because something better comes along?

It'll crash super hard but I still think this is fine metric.

The demand seems to be "institutionalised" since a couple of years. VC-like money coming in through cryptocoin service startups and disposable income from rich nerds and richer finance types looking to beat the market. It'll pass and/or stabilise.

It's the notion of what is stable here that's novel and interesting