Comment on Global cryptocurrency “market cap” exceeds “US” currency in circulationComments−swader9995yMarket cap is a strange way to frame crypto. Would you ever talk about market cap of USD or the pound? Transaction volume, unique addresses, stock to flow are more useful.−sb0575yMoney supply is a functional equivalent of market cap and is a rather common economic measure.−NovemberWhiskey5yThis really just seems like an odd statement to me.The market cap of just the S&P 500, which is denominated in U.S. dollars, is over $30tn, which is 50% more than the M2 money supply of U.S. dollars.So, explain to me again how these things should meaningfully be compared?−johnvanommen5yMoney supply is possibly the number one metric that I use to evaluate investments.−skystarman5yThe vast majority of people who buy bitcoin are using it as an "investment" so market cap makes sense here.
Comments
Market cap is a strange way to frame crypto. Would you ever talk about market cap of USD or the pound? Transaction volume, unique addresses, stock to flow are more useful.
Money supply is a functional equivalent of market cap and is a rather common economic measure.
This really just seems like an odd statement to me.
The market cap of just the S&P 500, which is denominated in U.S. dollars, is over $30tn, which is 50% more than the M2 money supply of U.S. dollars.
So, explain to me again how these things should meaningfully be compared?
Money supply is possibly the number one metric that I use to evaluate investments.
The vast majority of people who buy bitcoin are using it as an "investment" so market cap makes sense here.