Stability Vs. Price Growth

One Trillion and Counting…

Total market capitalization of the combined cryptocurrencies has just surpasses one trillion usd, Apple is currently valued at 2.222 trillion followed by Saudi Aramco, Microsoft, Amazon, and Google, all boasting market caps larger than the entirety of the cryptocurrency market publicly available. The total market cap of the top 4381 companies is 83x larger than the top 6124 cryptocurrencies. Bitcoin and Ether own %68.2 and %13.2 respectively of the total on trillion and change market cap. The top 10 cryptocurrencies represent 1,001,399,572,663 of the total 1,112,560,950,083 leaving just under 11.4 billion to be spread across 6,114 coins. That means after the top ten the average market cap is 228,912 or a mere %0.16 of the total market cap.

The cryptocurrency market is an inverted pyramid of money but that is partially due to it being a very young field still in its beta phase of testing and also due to the low barrier to entry in the field itself. Anyone can create a cryptocurrency, the entire bitcoin code repo is open and available with loads of documentation. A few weeks of effort and you can easily fork the codebase to be whatever type of crypto you’d like and deploy it under any cheesy crypto name which doesn’t exist yet like Rarecoin. It is also partially a feature in the space because it provides a huge amount of redundancy. With a list over 6000 currencies deep, there are bound to be two or three today which have extremely small market caps and almost no recognition which will become imperative in the next decade. If Bitcoin were to suddenly be banned by every single government on Earth tomorrow under penalty of death, there are thousands of replicas which are not bitcoin which can circumvent any crypto ban.

While 50k bitcoin in 2021 is exciting and a trillion plus market cap is a huge milestone that has been eyed for years in this space we need to take a look at what this push in price is coming from and evaluate the likelihood if its continuation. Crypto in general is in a great spot, as I just said it has an inverted pyramid of money with a long, long tail of redundant cryptocurrencies waiting in the shadows to step up if need be. This is a key sign of an anti-fragile system. However one of the other key signs of an anti fragile system is the necessary fragility of the system’s individual members, which include those top 10 currencies representing roughly %90.01 of the entire market’s value.

Follow the Bits

n traditional finance one follows the paper trail, in blockchain those are just bits. There are currently 2,296 wallets with 1000-10,000 bitcoin in them, representing 221,635,796,822 USD or %29 of Bitcoin’s market cap. The largest number of addresses falls under 0-0.001 bitcoin in them or about 40 USD, there are 16,909,787 which is %50 of all known addresses. These stats are from bitinfocharts. Not to mention grayscale buying nearly 3x the amount of bitcoin mined in December on the open market. There was a surge of over 490,000 wallets added to the class of 40 dollar wallets since just December 14. That means only around 19.6 million dollars of the recent 395,195,759,628 USD added to the bitcoin market cap since December 14th was from average every day users.

Bitcoin is slowly becoming just another asset class, continuing to diverge from its original intended meaning and serving those who it was meant to take down. Central Banks across the plant are eager now more than ever to begin deploying their own regional cryptocurrencies. Ukraine is working on their e-hyrvnia, which will likely be used to fund more crimes against humanity in the region, something the Ukrainian government is known for. And Kyrgyzstan is working on its own e-fiat currency while they also ban their citizens from owning any traditional cryptocurrencies.

Not to mention, average citizens in most countries across the world face similar restrictions on their right to own cryptocurrencies. Highlighted in this CoinDesk article are the absurd hoops many people are being put through to attempt to access this financial opportunity. It is not strictly a financial opportunity to make a profit either, it is a much deeper reward you gain when you become a soveriegn owner of cryptocurrency. You detach yourself from the financial institution designed to keep those richest among us rich and the poorest poor. Any and all cryptocurrency ownership is a step towards directly removing power from that class of people.

Where Are The Shop Owners?

With bitcoin surging, and the number of wallets rising at a staggering rate compared to the past, why are there no shop owners setting up bitcoin readers? Maybe it is because many of these shop owners are too small to afford a PoS (Point-of-Sale) system, which is a register, that accepts cryptocurrency transactions. It is also possible there is a lack of PoS systems which have an integrated cryptocurrency module for accepting payments. There is also a great fear among most Americans of the IRS to pay their taxes and crypto is a muddy bog in the current metastasizing cancer that is American tax legislation. It is not clear which cryptocurrencies are legal to own and it is certainly not legal withhold your ownership from the government.

When did it become the government’s right to deem what currency is used to settle private debts? As mentioned in the previous article, the US dollar is fiat currency suitable for all private and public debts, which just means you can pay your taxes in that currency and only that currency. There is nowhere in the laws of the United States which prohibits anyone from transacting in a currency foreign to that of the official fiat currency of the United States so long as they pay their taxes in dollars. A local corner store in Roxbury may accept Monopoly money, various size bottles of sand from Aruba, Tupperware, car batteries, copper, wire, or empty redeemable plastic bottles in exchange for his goods. However, for some reason it is currently very foggy whether or not they may accept Monero, Litecoin, or Bitcoin.

In a world which is currently dominated by bits, and where the line between virtual and physical value has been all but erased forever, there is still a need for physical adaptation to solidify the advances made in the digital realm. Bitcoin can be worth one trillion dollars a coin or one trillionth of a penny per coin, but if there is no means by which average citizens feel comfortable exchanging it, the price will make no difference. There need to be brave mavericks in the world, someone needs to stand up and show the rest that it is okay accept cryptocurrency. If the masses decide something the government has no choice but to abide and create the appropriate avenues for citizens to maneuver within. In my own opinion, absolutely none of that is needed, crypto is the currency of the people designed to circumvent all of that bureaucratic bullshit. But it’s been 13 years and 490,000 people just made their first 40 dollar purchase in the last month, so its going to take baby steps to get to the point where people are on the same page.