Anthony Pompliano on CNN:
We have very deep conviction on a long-term basis. And if you look at the fundamentals, the 24-hour transaction volume on the Bitcoin network is about $4.6 billion as of lately, and the market cap is $74 billion. So that’s about a 16-times multiple of transaction volume for market cap. That’s very similar to Mastercard which does about $11 billion worth of transactions and is valued at about $180 billion. So from a value perspective, it’s right there on par with Mastercard.
I’m generally bullish on Bitcoin, but I just don’t understand the “fundamentals” behind this market cap multiplier comparison between Bitcoin and MasterCard. Bitcoin’s market cap is calculated by multiplying its circulating supply by its last traded price on off-chain exchanges – a completely speculative figure that can be easily distorted or manipulated. MasterCard’s market cap is based on real revenue statistics. After tweeting at Pomp asking about this comparison, he responded saying “they are both transaction networks.” To me, this seems like a nonanswer, but then again, I’m not a Bitcoin maximalist.