Topic: Bitcoin Low Market Cap compared to the Big Banks ... (Read 2317 times)

To be fair, people can (and probably will) sell bitcoin in 10k basket sized trades as well when the price of the ETF rises above the exchange rate.

All that the ETF will do is provide additional liquidity and make it more difficult to manipulate the price, although the net effect will likely be that the price increases

ETF's HOARD coins.. thats the main premiss. its not like coinbase or bitstamp where people deposit coins and withdraw FIAT, but on a larger scale...
instead people buy baskets of coins off the existant markets and OTC's.. (10k coin baskets so imagine nice big price jumps per basket) they then put the into a trust fund. and then let other people play 'the markets' based on SHARES of the coins that are in trust.

so chances of a price drop are far far far far less then the price rise

Bitcoins marketcap looks to be very low at 4 billion compared to the Banks and Visa markets which are around 200 billion, how long do you think  it will take bitcoin to reach somewhere or at least half way there?

I'd say at least 2 years for bitcoin to atleast hit a 25-70 billion market cap

ETF's HOARD coins.. thats the main premiss. its not like coinbase or bitstamp where people deposit coins and withdraw FIAT, but on a larger scale...
instead people buy baskets of coins off the existant markets and OTC's.. (10k coin baskets so imagine nice big price jumps per basket) they then put the into a trust fund. and then let other people play 'the markets' based on SHARES of the coins that are in trust.

so chances of a price drop are far far far far less then the price rise

It's difficult comparing Bitcoin to anything, especially banks. Is Bitcoin a currency? A commodity? A commodity with monetary properties? If so, then why compare a currency to a for-profit company, which is what a bank is? Yet they are in competition, so I can also see why one would compare them. A better comparison might be ceteris paribus over time and with regard to exchange rates, the delta of BTC's volume against the volume of SWIFT, Western Union, MoneyGram, and other global remittance systems. Yet one would still be comparing Bitcoin to a few specific mediums that use nation-state currencies, another difficult comparison considering the differences between Bitcoin and nation-state currencies.

The wait for the Bitcoin ETF gets longer and longer. I do hope it provides some solid price support when it does enter the market. The volatility could also increase, as people withdrawing funds would result in rapid price drops.

Exactly. Wait the Bitcoin ETF of the Winklevoss Brother and you'll see (maybe) a market capitalization of bitcoin around 200 billion of dollars ! It's possible? I guess yes

I think most people in bitcoin don't realize what etf is or can do

Exactly. Wait the Bitcoin ETF of the Winklevoss Brother and you'll see (maybe) a market capitalization of bitcoin around 200 billion of dollars ! It's possible? I guess yes

I agree with this. Once bitcoin reaches a certain point it will be almost irrelevant to assign it a fiat spot price.

Do we measure emails in terms of how many paper envelopes they can displace?

Define the word "value". What does in mean to us? If you have 320 in fiat and 1 btc which converts to the equivalent amount, ask yourself which one do you think is worth more in term of purchasing power and in terms of actual value measured as hedge against inflation? Market cap is just a representation when you compared it back against fiat. So why bother to use that?

5 years would be more realistic IMO.

The new Bitcoin ETF could be a game changer when it comes online - Wall Street can throw $20B around like it's nothing. Case in point - GoPro

+1

the current crappy php based exchanges are playing around with crappy volumes, and in any half hour period its dozens to only a couple of hundred coins being traded.

i find it foolish to base the market cap value of 13.5million coins on the movements of these crappy exchanges. as they are not true value indicators of supply or demand. localbitcoins and OTC's are better indicators as EVERY transaction is a bank transfer to bitcoin trade, with no speculation or fake movements.
especially when you take into account the fact that trying to deposit more than $10k into the crappy exchanges causes delays, and an obscene amount of red tape, the large investors do not even bother using these crappy exchanges.

thus when the ETF starts up which has proper investors throwing proper bank funds at the ETF we will see a recovery of proper value discovery. so dont worry about low prices now if you are hoarding. instead if your a buyer, treat this as a way to abuse these crappy exchanges with low prices to grab a bargain, and if you want.. sell them for better value on localbitcoins/OTC for profit (rinse and repeating the process) to increase your hoards. as the ETF will cause significant price rises.

if you do not believe that ETF will do much. just think about the amount of bitcoins required for a "basket"(10k bitcoin) and then check out your favourite crappy PHP exchange and see how high the price will rise to be able to grab enough coins to fill one basket.

 and with how fast information is passed on the internet this could come sooner than expected