|
|
|
|
|
|
by addicted
1335 days ago
|
|
|
Market capitalization is objective but isn’t a measure of value but specifically financial value. Also, Bitcoin doesn’t have a market cap. It’s a currency. No one talks about the U.S. Dollar’s market cap because the whole idea is a nonsensical invention that Cryptocons have used to sell the idea that crypto currencies are investments while still calling themselves currencies to evade regulation. The fact that the cryptocons have invented market cap as a measure for something they claim is currency is in itself a huge red flag. |
|
|
The adjacent concept is called "money supply" [0] which is, as far as I can tell, the equivalent of "market capitalization" but for currencies. Specifically, for US dollars, the "M2" money supply looks to be around $25 trillion [1].
I don't like that Bitcoin with the language used to describe stocks and bonds but whether Bitcoin enthusiasts use that language, it's certainly being adopted by the public, so we're kind of stuck with it.
Had you been more generous in your reading, you could have filled in "money supply" for Bitcoin, which currently stands at just under $400 billion (~19.2 million bitcoin @ ~$20k/btc). The generous conversion interpretation of the US dollar "market cap" (aka "money supply") is $25 trillion.
People can and do talk about the US dollars "market cap", they just call it something else ("money supply"). People also buy and sell currencies, very similarly to stocks, via foreign exchange markets.
[0] https://en.wikipedia.org/wiki/Money_supply
[1] https://ycharts.com/indicators/us_m2_money_supply#:~:text=US....