Market cap of crypto 1% of worldwide stock market cap

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legendary

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Quote from: Hydrogen on January 09, 2018, 05:32:53 PM

I don't know if I'm the only one who thinks this but 1% of worldwide stock market cap sounds MASSIVE.

You're not the only one.

1% is indeed massive. It wasn't all that long ago where Bitcoin didn't even account for 0.5% of Gold's market cap, and see today, even while Gold has gained value lately, Bitcoin accounts for 3% of Gold's total market cap. That's what I consider to be a massive achievement, and especially when I look back at screenshots that I periodically make where Bitcoin's market cap was still below $1 billion. If we take the combined market cap of all crypto's, which is nearly $700 billion right now, we need a small push forward to reach 10% of Gold's today's market cap. For an industry that was said to have reached it's ultimate all time high of $100 back in 2013, from which it would never ever recover again, that's just insane. And don't forget that we have so much more growth to experience in the forthcoming years. Grin

Washball

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First crypto index traded as a token!

It does not look like much if you put it that way, 1% of worldwide stock market cap. But It's a huge amount and It's still increasing. You might get the idea that it's a bubble because of the incredible prices, but investors and the mainstream are bringing so much growth into the crypto space, that the market cap will increase much more.

Bobby park

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Quote from: OrganicCoin on January 09, 2018, 05:56:21 AM

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, it’s 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?

Imagine, it is worldwide stock! Eventhough it is just a 1% of stock globally but it is huge enough. We cannot say that the bubble thing may come true and it is worst time for the investors of cryptocurrency. In fact, many investors as of now are neglecting to join in cryptocurrency, in avoidance of bankruptcy.

william8829

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Cryptocurrenccy is a term that covers more than Bitcoin. Bitcoin makes up roughly 30% of the cryptocurrency market capitalization.

Quote from: Hydrogen on January 09, 2018, 05:32:53 PM

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.

Sound reasoning. Bitcoin price has inflated many times over the years. It has had major corrections as well. A correction is very possible.

A crash is certainly within the realm of possibility. Emotional investors are a huge contributing factor when it comes to crashes and there are plenty of them that have invested in Bitcoin. Even if it does who cares. Crash does not mean Bitcoin will disappear. As long as the community has interest it survives no matter what the price.

Amazons stock crashed by more than a factor of 10.

Tankdestroyer

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Quote from: OrganicCoin on January 09, 2018, 05:56:21 AM

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, it’s 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?

1% of worldwide stock market cap is still big but like you I also suspect a huge correction at some point since bitcoin will not go on a bullish trend forever. I am sure that someday it will show a bearish trend and I think this way because right now bitcoin is not really being used mainly as a currency but people use it for speculative purposes in order for them to profit. If that is the case, at some point they will dump their coins they hold.

jargal

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Well... here (http://www.ey.com/Publication/vwLUAssets/ey-global-ipo-trends-q3-2017/$FILE/ey-global-ipo-trends-q3-2017.pdf) it reads that total IPOs for 9first month of 2017 was 130B (that seems super low though...?) ... and from what I gathered, 2017 ICOs amounted to about 5B.... at that rate...

MadAboutCrypto

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Quote from: OrganicCoin on January 09, 2018, 05:56:21 AM

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, it’s 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?

I'm thinking that when we hit 10%, we will reach the moon

OrganicCoin

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Quote from: Silberman on January 12, 2018, 06:47:38 PM

That is interesting and a new milestone that crypto has reached but I will be more interested when bitcoin reaches the 1% of the total money supply which is a lot bigger than that, when that happens bitcoin another cryptos will go up considerably and that point bitcoin will be one of the most important currencies worldwide.

Do you think Bitcoin will reach that or rather another new crypto jet to emerge?

Silberman

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Quote from: OrganicCoin on January 09, 2018, 05:56:21 AM

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, it’s 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?

That is interesting and a new milestone that crypto has reached but I will be more interested when bitcoin reaches the 1% of the total money supply which is a lot bigger than that, when that happens bitcoin another cryptos will go up considerably and that point bitcoin will be one of the most important currencies worldwide.

buwaytress

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Quote from: chukaday on January 09, 2018, 07:19:18 PM

I would argue that cryptos are unlike any asset class we have seen before and trying to view at as such with discussion of bubble is not useless but it doesn't apply to how I view the market. That may be ignorant or whatever (not trying to be) and there will be a time when it is overvalued but a bubble signals to me that an end is near and I think an end will never be near. That is why I disagree with the notion of a bubble for cryptos.

Something that needs reminding often. Every pessimist out there who's called out the death of Bitcoin have yet (or never want to) fully grasped that the very idea of Bitcoin puts it apart from every other asset used for comparison. Not that the whitepaper is misleading in title, but people like me took a long time to get into crypto because of our introduction to it as digital money, and we weren't ready to think outside of years of convention, training and psychological view.

Even if the crypto market one day exceeds that of the entire world's stock market, it wouldn't mean much beyond the plain fact of comparison. Psychologically, it does lead to the question "how is this value conceived?". And then it leads to soul-searching and pursuits of the answer, when the answer is right there in the market. People want to buy and sell for X price, that is how the value is conceived.

First77

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$600,000,000,000 looks like dead end for cryptocurrencies

OrganicCoin

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Those are both good points. Sure as long as new people invest in crypto it will grow and I guess in the end a lot will depend on the fact if crypto gets broadly adapted as a means to pay for goods/services. Then it will have “real value” above the speculative one and the whole discussion about bubbles changes completely.

However, my thought about this was: the whole stock market value is basically the value of all (joint-stock) companies. Meaning it represents the value of a huge portion of the whole economy of the world. I just find it hard to believe that the whole crypto market really worth one percent of that.

On the other hand there are already a lot of crypto adopting real world problems and being more or less shares of a company. So maybe I am mistaken with my assumption.

As you can see I am quite indecisive about this but find it an interesting topic. For that reason, I wanted to have a discussion about it.

chukaday

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I would argue that cryptos are unlike any asset class we have seen before and trying to view at as such with discussion of bubble is not useless but it doesn't apply to how I view the market. That may be ignorant or whatever (not trying to be) and there will be a time when it is overvalued but a bubble signals to me that an end is near and I think an end will never be near. That is why I disagree with the notion of a bubble for cryptos.

Hydrogen

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Quote from: OrganicCoin on January 09, 2018, 05:56:21 AM

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, it’s 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?

....

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.

OrganicCoin

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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, it’s 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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