Figure 1 details the ratio of market value of bitcoin: the issue factor of shanzhai currency is not taken into account

According to the analysis of twitter data analyst @ceterispar1bus, the market value ratio of bitcoin, a commonly used indicator, does not take into account the issue factor of shanzhai COINS.

As shown in the figure, according to CoinMarketCap, the market value of bitcoin currently stands at 67.1%, while that of counterfeit COINS issued in 2016 and before accounts for 17.7%, 7.3% in 2017, 4.0% in 2018, and only 3.9% in 2019. Interestingly, while a large number of new projects have large aggregate valuations, CoinMarketCap only calculates current market capitalization. Based on current market values, the real impact of the new shanzhai COINS has been waning over time.

BlockBeats believes that, given current market conditions, the boom in tian-wang projects is unlikely to last forever and that the impact of the new shanzhai COINS could continue to wane in 2020. In fact, even if bitcoin keeps its market value constant, its advantage over any other currency is always growing. The market value ratio of bitcoin should not be an indicator to directly measure the currency advantage of bitcoin, but an indicator to measure the current allocation of market funds.

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