worshipbitcoin on Nostr: Yeah, I've been thinking about this and at one time tried to find alternate ways of ...
Yeah, I've been thinking about this and at one time tried to find alternate ways of calculating market cap that would in some way adjust for the degree of illiquidity.
I don't know if it's willful ignorance or just convenient convention that we include lost coins in the "official" market cap. But I think they definitely shouldn't.
Which again begs the question as you point out, but what about long term HODLing? Isn't that kinda the same thing?
I think it is similar, but not black and white. Which is why I was curious to search out alternatives to the normal way of calculating market cap where you just multiply supply with spot price.
I do think there is something interesting to explore there, and perhaps express mathematically. The degree of illiquidity exists on a spectrum and I think an adjusted market cap should somehow reflect that.
Btw, I tried to zap your post, but notice you don't have a lightning wallet setup ;-)
I don't know if it's willful ignorance or just convenient convention that we include lost coins in the "official" market cap. But I think they definitely shouldn't.
Which again begs the question as you point out, but what about long term HODLing? Isn't that kinda the same thing?
I think it is similar, but not black and white. Which is why I was curious to search out alternatives to the normal way of calculating market cap where you just multiply supply with spot price.
I do think there is something interesting to explore there, and perhaps express mathematically. The degree of illiquidity exists on a spectrum and I think an adjusted market cap should somehow reflect that.
Btw, I tried to zap your post, but notice you don't have a lightning wallet setup ;-)