And İs it possible for market cap to expanse 500 billion $ in one year ?
And it s correlated with price right?
And it s correlated with price right?
It's definitely possible, mainly because of how little BTC is circulating on exchanges which dictate the price. I noticed that exchange order book supply dried up significantly in early 2017 just as it did in late 2013. Now, here we are, at $8700.
Given the amount of institutional money that's slated to enter the market, and how much mainstream attention Bitcoin has been getting for months on end, I don't think such an expansion is unreasonable at all. But one of the reasons that people doubt market cap as an indicator is that it doesn't account for mid term volatility very well. Remember, after the 2013 bull market, the price declined 80-90% before we formed another uptrend.
market capitalization is a false factor for cryptocurrencies and in my opinion it should not even be used let alone used for comparison among themselves or used to compare them with a company.
it is a term which is *falsely imported* from stocks market into crypto market.
it is a term which is *falsely imported* from stocks market into crypto market.
Why is it applicable in stocks but not cryptocurrencies?