There are a lot of unwarranted claims posted about the Bitcoin economy here every day. In response I will post one thing which I think is misrepresented by BTC investors.
You can then as this thread goes on try to pick the argument apart.
For today:
The Bitcoin market cap is usually quoted as every BTC currently in existence times the current market price. This is not true because the majority of BTC were never traded for currency. Even worse during a rally the supply dries up because people do not want to risk having the price surpass their ask significantly.
You can then as this thread goes on try to pick the argument apart.
For today:
The Bitcoin market cap is usually quoted as every BTC currently in existence times the current market price. This is not true because the majority of BTC were never traded for currency. Even worse during a rally the supply dries up because people do not want to risk having the price surpass their ask significantly.
This is of course right, but I look at it another way. It shows how little fiats(for a real investor) is needed to push the price in either direction, which is why I kept on saying if a few manipulators want to push the price to a certain point, they are fully capable of doing that, and I believe they are doing that.
On the other hand, the good news is that if bitcoin price ever falls into the quagmire of $2-$4 again, only about 500k dollars is required to salvage it, and that's definitely not a lot.