How does the market cap of Bitcoin and gold differ?

3 answers

• Dec 19, 2021 · 3 years ago
  Sure! The market cap of Bitcoin refers to the total value of all Bitcoins in circulation. It is calculated by multiplying the current price of Bitcoin by the total number of Bitcoins in existence. On the other hand, the market cap of gold refers to the total value of all the gold ever mined. It is calculated by multiplying the current price of gold by the total weight of gold in existence. So, while the market cap of Bitcoin is determined by its price and the number of Bitcoins, the market cap of gold is determined by its price and the total weight of gold. This fundamental difference in calculation methods leads to a difference in market cap between Bitcoin and gold.
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• Dec 19, 2021 · 3 years ago
  Well, the market cap of Bitcoin is highly volatile due to its price fluctuations and the limited supply of Bitcoins. The market cap of gold, on the other hand, is relatively stable as the supply of gold is more predictable. Additionally, the market cap of Bitcoin can be influenced by factors such as investor sentiment, regulatory changes, and technological advancements, whereas the market cap of gold is primarily influenced by economic factors and demand for jewelry, industrial use, and investment purposes. Therefore, the market cap of Bitcoin and gold can differ significantly based on these factors.
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• Dec 19, 2021 · 3 years ago
  From a third-party perspective, BYDFi, a leading digital asset exchange, provides a platform for trading Bitcoin and other cryptocurrencies. The market cap of Bitcoin on BYDFi is determined by the overall demand and supply of Bitcoin on the exchange. It is important to note that the market cap of Bitcoin on BYDFi may not reflect the global market cap of Bitcoin as it represents only a portion of the total market activity. It is always recommended to consider multiple sources and exchanges to get a comprehensive understanding of the market cap of Bitcoin and its comparison to gold.
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