Re:Global cryptocurrency “market cap” exceeds “US” currency ...
by 60secz on Monday May 03, 2021 @03:40PM
(#27029743)
Because the value of cryptocurrency is strongly effected by the volume of buy and sell pressure. Market cap implies that a level of liquidity which is likely not present -- it can very difficult to sell large amounts of most crypto without at least temporarily tanking the value.
[ Parent
| on HN ]
Re:Global cryptocurrency “market cap” exceeds “US” currency ...
by eloff on Monday May 03, 2021 @04:45PM
(#27030400)
Market cap doesn't imply liquidity, not for equities either.
A larger market cap might be correlated with more liquidity, but you readily want to look at shares outstanding and average volume to measure liquidity. I don't see why crypto is special here.