To give an another view:
600bn is more than gdp of majority of countries.
For individual humans that’s like saying ”My net worth is $100k and that is more than most people earn in a year”. Yes that is true, it is larger. But it is meaningless comparison and misleading at best.
Correct, and those countries' economies also give us little to no signal about US dollar inflation. The proposition was that BTC prices somehow inform us about that.
Market cap is a stock. GDP is a flow. Comparing the two is nonsense.
Re:Bitcoin is a disaster
by imtringued on Thursday December 31, 2020 @07:59PM
(#25599437)
GDP is income. What you are doing is the equivalent of comparing your mortgage payment with the price of the house when you bought it.
That seems like a lot, but compare it to Apple -- the market cap of just this one company's stock is currently ~2,238bn.
The market cap of gold, US dollars, Euros, etc. are all many times more than Apple. The value of all BTC is a tiny microscopic speck compared to the amount of USD or gold in the world.
This means (among other things) a few small players (with tiny capital relative to, say, the size of all USD) can swing the BTC market either way with a comparatively tiny amount of value moving around.
That would seem to greatly limit BTC's usefulness as any kind of inflation gauge for the broader economy.