What does Bitcoin's supply value mean?

Research on the Bitcoin market is inseparable from various keydata, such as market price, transactionvolume, market capitalization, etc. What we are going to talk about today is a relatively unfamiliar value, namely the circulationvalue of Bitcoin. We all know that the Bitcoin circulation volume is the total number of Bitcoins mined, usually defined when the genesis block is created. Market capitalization is the current market valuation of Bitcoin. So what does the circulationvalue of Bitcoin mean? There are still many people who don’t know. Literally speaking, it is actually calculated by multiplying the total supply ​​of Bitcoin in circulation by the current price. The editor below will tell you in detail.

What does Bitcoin’s Supply Value mean? The supply value of Bitcoin is the value obtained by multiplying the maximum supply of Bitcoin and the latest price . According to official data, the current price of Bitcoin is 69,075.68 US dollars, and its maximum supply is 21 million. coins, then the supply value of Bitcoin is $1,451,307,900,000. Bitcoin’s supply value is a similar but more comprehensive concept to market capitalization, referred to as FDV.

FDVconsiders the total supply ​​of Bitcoin that may be issued, including those not yet in circulation. This allows investors to assess the true value of a project now that all Bitcoins have been issued. The difference between market cap and FDV is the calculated Bitcoin supply. In the absence of any Bitcoins being burned or removed from circulation, when all Bitcoins have been issued, the market cap and FDV will have the same value.

Investors often use market cap and FDV combined with other factors such as trends, market sentiment, etc. to assess the potential of a cryptocurrency asset and accurately determine its valuation. This is a simple yet effective way to compare and determine whether Bitcoin is overvalued, undervalued, or reasonably priced.

Who controls behind Bitcoin? There is no single controller or governing body behind Bitcoin, which is a decentralized cryptocurrency. The Bitcoin network is controlled by Bitcoin investors around the world. Unless the vast majority of Bitcoin users agree to make a change, no person or organization can change or stop the operation of Bitcoin. In the Bitcoin system, users can truly control their own money. Bitcoin is the first time in human history and civilization to control private property through technical means.

The design concept of Bitcoin is based on blockchain technology, ensuring the security and reliability of transactions through a decentralized network and consensus algorithm without relying on any central management agency. The operation and development of Bitcoin relies on the participation of miners and nodes around the world. Miners verify transactions and generate new blocks by solving mathematical puzzles. Their actions are based on a consensus algorithm, so no single entity can control the operation of Bitcoin.

Although no person or entity can directly control the Bitcoin network, during actual use and transactions, individuals or organizations may affect the market price or participate in network activities, but this is not the same as controlling the entire Bitcoin network.

The above is the detailed content of What does Bitcoin's supply value mean?. For more information, please follow other related articles on the PHP Chinese website!