[pjlegato]

The entire BTC market cap is minuscule -- about 600bn as of this writing.

That seems like a lot, but compare it to Apple -- the market cap of just this one company's stock is currently ~2,238bn.

The market cap of gold, US dollars, Euros, etc. are all many times more than Apple. The value of all BTC is a tiny microscopic speck compared to the amount of USD or gold in the world.

This means (among other things) a few small players (with tiny capital relative to, say, the size of all USD) can swing the BTC market either way with a comparatively tiny amount of value moving around.

That would seem to greatly limit BTC's usefulness as any kind of inflation gauge for the broader economy.

[pojzon]

To give an another view:

600bn is more than gdp of majority of countries.

[sharpneli]

For individual humans that’s like saying ”My net worth is $100k and that is more than most people earn in a year”. Yes that is true, it is larger. But it is meaningless comparison and misleading at best.

[pjlegato]

Correct, and those countries' economies also give us little to no signal about US dollar inflation. The proposition was that BTC prices somehow inform us about that.

[fernmyth]

Market cap is a stock. GDP is a flow. Comparing the two is nonsense.

[imtringued]

GDP is income. What you are doing is the equivalent of comparing your mortgage payment with the price of the house when you bought it.

[chii]

comparing GDP to market cap is also a very irrelevant kind of comparison. Just because the use the same dimension (like dollar) doesn't mean they are directly comparable.