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⚡️Bitcoinia (Bitcoin Art) | 1 months ago (raw) | export | reply | flag +3 
 Why is BTC more sensitive that Gold in terms of market cap? For eg Mark Moss says BTC goes up $9 for every $1 that comes in. Some others say 4/5 per $1 in market cap.

But what is the reason for this? I assume it's because BTC is a more diff asset to increase the supply of ie more 'hardened' and therfore more secure in fiat monetary problematic times. 

Is this correct in your opinion or another reason?

#asknostr #macro #politics #economics #plebchain #btc #gold #bitcoin #nostr
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Jose Sammut | 1 months ago (raw) | root | parent | reply | flag 
 Bitcoin's market cap isn't really relevant in the way that stocks are. You can't run a valuation. It's just supply and demand based off everyone's vibes at the time. 

So the price is derived from the few Bitcoin that get traded and then multiplied by 20 million. 

If only a few Bitcoin are avaliable for sale you can jack the market cap by billions and billions with not a lot of money. 

Technically that could be Gold too but the vibes are different with that. It's run through it's phase of price discovery.

My thesis is that money flows to Bitcoin when the global liquidity increases because people seek growth and scarcity and money flows to gold when global liquidity goes down because money gets consolidated in safer/more secure assets. 

ATM gold trades on recession / war fears, Bitcoin trades on rate cuts and economic growth.
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⚡️Bitcoinia (Bitcoin Art) | 1 months ago (raw) | root | parent | reply | flag 
 V interesting food for thought. Thanks!