/biz/ - Business & Finance

The marketcap of the entire crypto market is a complete and total lie and I'll explain to you why. First let's begin with why the marketcap of bitcoin itself is completely inaccurate, and just as a reminder, marketcap is a simple calculation of circulating supply multiplied by the spot price. Here's why that's total bullshit:

Firstly, you can remove 1 million BTC from the circulating supply right off the top, which is the Satoshi wallet which can never be touched or it will crash the entire market just on the news that it's active. Then, there is an indeterminate number that is very likely very large of coins that were mined very early on in very large numbers and lost forever in wallets that will never be recovered. There are likely at least a couple of million BTC in dead wallets mined by people in the CPU and early GPU days as a novelty that they forgot about or lost for whatever reason. We can probably safely assume that at least 3 million and perhaps upward of 5 to 6 million BTC are lost and irrecoverable for whatever reason. Now again, marketcap is calculated by circulating supply multiplied by the spotprice.

The marketcap of the entire crypto market is a complete and total lie and I'll explain to you why. First let's begin with why the marketcap of bitcoin itself is completely inaccurate, and just as a reminder, marketcap is a simple calculation of circulating supply multiplied by the spot price. Here's why that's total bullshit:

Firstly, you can remove 1 million BTC from the circulating supply right off the top, which is the Satoshi wallet which can never be touched or it will crash the entire market just on the news that it's active. Then, there is an indeterminate number that is very likely very large of coins that were mined very early on in very large numbers and lost forever in wallets that will never be recovered. There are likely at least a couple of million BTC in dead wallets mined by people in the CPU and early GPU days as a novelty that they forgot about or lost for whatever reason. We can probably safely assume that at least 3 million and perhaps upward of 5 to 6 million BTC are lost and irrecoverable for whatever reason. Now again, marketcap is calculated by circulating supply multiplied by the spotprice.