There’s plenty of talk about Bitcoin and cryptocurrencies these days; from endless banter from people who don’t even understand the basic premises, completely nonsensical information from folks who have no concept of money and finances in general and even some discussions anchored in fact and knowledge. One kind of vital piece of information is impossible to be found though: how much money has been put in BTC and its derivatives? It’s easy to calculate to the total value of all Bitcoins: quantity times price, just like the market cap of a stock, but that’s not what I’m talking about. I want to know how much money all of us together have spent on buying them and that’s not that easy to figure out.
One more thing: please, PLEASE take all these analyses on the web about BTC’s price movement (moving averages, death cross etc etc) with a pallet of salt. The people writing them are using methods that may hold value when applied to stocks representing companies, for predicting the value of something completely different, and that’s asking for trouble. You see, even if investors would lose trust in Ford as a company, its stock would still be worth something, based on, if nothing else, the company’s assets (factories, inventory, cash), but BTC could be worth $0 overnight if something bad enough happens. I’m not exaggerating; its price is 100% dependent on trust. I’m certainly not saying it’s worthless; I believe we have something incredibly valuable here in the long run, but our old methods of analysis can not be blindly carried over.