Quote:
Originally Posted by john70t
The world’s biggest digital asset, bitcoin, has seen a huge price plunge that resulted in $365 billion being washed out of the cryptocurrency market.
|
This type of reporting bugs me, as it's just not true. Appraisal theory needs to rely on the supply / demand curve, and the time factor too. If something is thinly traded, then the market value is not a good indicator of value. I believe that Bitcoin is relatively thinly traded (Google says only 19% is traded). It's like having a neighborhood with 100 houses and one house sells for $1M, then they would say that the neighborhood is now worth $100M. It's just not accurate. If everyone put their house on the market the next day, the price would plummet. If no one sold *ever*, then the price would go up. Appraisal theory just doesn't work on thinly traded assets...
-Wayne