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 ;-)
worshipbitcoin
npub1w4…5j067
2023-09-13 15:17:31
in reply to nevent1q…tr7g
Author Public Key
npub1w4j2y74wx24sckf7ymgnf3r4gp0yqd8huw8kzfyt2lj8lhmh7ujs75j067Published at
2023-09-13 15:17:31Event JSON
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"content": "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.\n\nI 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. \nWhich again begs the question as you point out, but what about long term HODLing? Isn't that kinda the same thing?\nI 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.\n\nI 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.\n\nBtw, I tried to zap your post, but notice you don't have a lightning wallet setup ;-) ",
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