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by dan-robertson
1629 days ago
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I put it to you that market cap is not a particularly relevant quantity but the thing that matters is mostly a mix of retail exposure and expected volatility (as well as eg media interest). Bitcoin is basically expected to be volatile (which is why 10% down is not news). I think you were trying to make a point about retail exposure rather than market cap, but that does not sufficiently describe why the media care because a big move in something that is meant to be stable (e.g. some fixed income index) is smaller in percentage terms than a big move in something that is expected to be less stable (like an equity index). |
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As for the rest, I disagree. If a million people lose 10% of their savings it matters more than if a thousand people lose 10% of their savings, and that's why market caps matter for anything publicly traded. The amount of money is what matters, and that's measured by market cap. Sure, we can get down into more granular details like how much of that market cap is the float, are people investing into certain stocks using their Roth IRA, or whatever other details - but the amount of money drowns out these factors in the aggregate.
Agree to disagree. Cheers.