What is everybody thinking about the fact that the total market cap of crypto is about 1% of the worldwide stock market cap. I would argue that viewing it that way, its hard to avoid talking about a bubble. I would suspect a huge correction at some point. Do you guys share that view or do you think I am missing something?
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I don't know if I'm the only one who thinks this but 1% of worldwide stock market cap sounds MASSIVE.
1% of Bill Gates $50 billion dollar net worth amounts to a whopping $500 million, definitely not a paltry sum. When dealing with huge sums like
global stock capitalization, 1% of a number that large is very big, in my opinion. If bitcoin and crypto altcoins have room for growth, that potential for future gains could be considerable.
One thing about bubbles that is being underscored. Bubbles tend to occur when something is overvalued in relation to its fundamental metrics. Bitcoin doubling its userbase every 12 months or so, and coinbase reportedly having 100,000 new sign ups per day could imply that bitcoin hasn't hit its all time high, yet. Bubbles tend to occur when growth statistics flatline and value continues to increase without support. With bitcoin growth and price increases appear to keep pace with each other, which could imply there is no bubble as price hikes are merely a product of natural growth, etc.