Three Key Differences Between Traditional And Cryptoasset Markets
What is the real market value of cryptocurrencies like Bitcoin? What is the real market value of cryptocurrencies like Bitcoin? The numbers used to explain the performance of Bitcoin and other cryptocurrencies are less meaningful than most assume. Cryptocurrencies are not exactly like stocks, and cryptocurrency exchanges do not work like traditional securities markets. As a result, many cryptoasset investment strategies based on conventional definitions of market share, capitalization, volatility, and trading volume are deeply flawed. Misleading numbers mean that cryptocurrency valuation and adoption are poorly understood, which creates a false perception by the media and investors about cryptocurrencies such as Bitcoin. One implication of this analysis is that Bitcoin has captured the vast majority of the long-term upside in the cryptocurrency market despite having about half the nominal market share. Most cryptocurrencies and crypto exchanges manipulate numbers in ways that publicly ...