The Tricky Business of Calculating Crypto’s Market Value
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(Bloomberg) — This crypto winter is still blowing cold and it’s not clear when or if a so-called spring will arrive.
The losses have affected the entire cryptocurrency ecosystem, from hedge funds, to lenders, to countless individual retail investors. By most calculations, $2 trillion worth of value has been wiped out.
Before the big chill, the estimated total market value of crypto assets worldwide stood around $3 trillion in November 2021. That’s a sizable chunk. But how is market value calculated? And how representative is it of crypto’s actual economic value? Did the digital asset boom ever even happen? Is there an element of groupthink when it comes to crypto’s overall valuation? Do we need to rethink market value?
Bloomberg reporter Vildana Hajric joins this episode to weigh in on this increasing disputed metric.
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