Published On: Sun, Feb 26th, 2017

At What Price Will Bitcoin’s Market Cap Equal Gold & Reserve Currencies?

Share This
Tags

Bitcoin is money so it does not have a market cap. So how can we determine at what price point will Bitcoin match the total money supply value of precious metals and global reserve currencies?
Bitcoin: Market Cap or Money Supply?
First off, a disclaimer. Definition of market cap:

Market capitalization is the market value of a company’s outstanding shares. This figure is found by taking the stock price and multiplying it by the total number of shares outstanding. — Investopedia

Bitcoin is not a company. There are no shares in Bitcoin. It does not have a stock price. It does not have a market cap.
Bitcoin is money. It makes as much sense to talk about the market cap of Bitcoin as it does to refer to the market cap of the dollar. The dollar and Bitcoin have Money Supplies (MS). It is best to analyze their markets using classical comparative-static Monetary Economics. The Supply of Bitcoin is perfectly inelastic (vertical Supply curve). Supply increases by 12.5 Bitcoin (curve shifts right) every 10 minutes. The Demand for Bitcoin is a Demand for Money.
Having got that out of the way, the terms Money Supply and Market …

Read more –> click here all content is copyright Bitcoinist.

Need Bitcoin marketing and PR? Bitcoin PR Buzz has been proudly serving the PR and marketing needs of Bitcoin and digital currency tech start-ups for over 2 years. Get your own professional Bitcoin or cryptocurrency press release CLICK HERE..

Powered by ABITCO.IN

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

ALL Bitcoin News

Like what you’re reading?

Never miss any breaking Bitcoin news by following us on Facebook and Twitter!


SUBSCRIBE OUR RSS FEED AT: http://abitco.in/feed

×