Bitcoin Forum

Im learning day by day about alt coins. But one thing I'm confused about is the market cap. What exactly is the market cap and how is it important to the success of the coin? Does a higher market cap mean a better chance the coins value increases?

A coins market cap is a very poor metric to gauge a coins desirability and profit potential. But as a vast majority of idiots use it as such is has become a self fulfilling prophecy.

As an example of a fake market cap I can create a token and sell that token to myself for 1 billion btc and that token will have a market cap of 1 billion btc.

Many pre-mined coins do this Ripple is one of the bigger ones and most of the top caps are pre-mined with manipulated caps.

market cap is simple refer as Market Capitalization, investors or company investment use it to figure out how much or how large the company's total asset figure.
They are break-down by : Large Cap, Mid cap and Small cap but it id depend on the criteria on how they are rank and by market where they are place.

Larger Cap have about 10 billion market capitalization or more. They are those well-establish company who are long enough in running in the business and one of the major player in the industries.

Simple Formula to determine Market Cap:
Example company have about 1000 shares selling it about $10 per share, Company will have a total of 10,000 Market cap.

1000 share
x 10 dollars
--------------
$10,000 Market Cap

hope it will help you!

market cap is just the total value of the coin invested in the market, where it is calculated by number of coins multiply by the the coin price. lets say and XYZ coin has a total circulating supply of 1 million then each coin is worth 1K usd, then the market cap is 1 billion USD. The market cap varies from supply and demand, mostly affected by the price of coin.

High market cap isn't nessasarily a signal that a coin will grow in the future, it's more of an indication that the coin has gained popularity and already had a pretty good investment base.  Some coins have been near the top of market cap, like Doge, but have faded quickly.  Bitcoin has always been #1 and has continued to gain value.  Not much to draw from it, except you'll notice the most talked about coins are almost always near the top. 

Market cap is the total value of all supply the coin that already distributed into the market or in some words that reflected the total supply of coin that already existed. I can say that just like a valuation of the total supply already traded in the market and held by the developers.

It could also be explained by the graph on each coin. How much it increased every hour and how much was in market and how much is already used. Also most caps has the price in btc as its the founding coin and probably most prices vary depending on how much is its price and in dollars as it is the most popular currency to us.

Market Cap or Market capitalization refers the total dollar market value of a company's outstanding shares.
it's a lot of information with follow in
http://www.investopedia.com/terms/m/marketcapitalization.asp#ixzz4t5pEjqQo

May be it can be truth for the bulk day trader to get success with high market cap coin but in actual if you want to do trading in altcoins for short and long term then you should be careful that what is the risk to buy high market caped coin .
Suppose ETH is the high demand coin goes up and you just bought now because of the attraction of the coin increasing rate , so you can expect that price will increase but most of the chances happened wrong , price get down easily .
So it is more better to see the coin with low rate which is more popular .
But this is the truth that you can make net profit if you can try day trading with multiple coin in high market cap .
So here market cap is a blow of air in the social media platforms about the publicity of the coin and making trade with big fluctuations and results into profit .

I've wondered this a lot as well as so many people seem to act as if it is the be all and end defining factor of a coin's potential.

The more I read about crypto and blockchain the more I realise you have to take everything you read online with a pinch of salt unless it comes straight from the horses mouth.

Market capitalization refers the total dollar market value of a company's outstanding shares. Commonly referred to as "market cap," it is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to using sales or total asset figures.

In crypto, it means NOTHING.

market Cap means total number of coins multiplied by the price of the coin. There is no connection of success of the coin with the market cap , success of coin depends on many factors like concept, working of team, earning resources, product value and so on.

yeah even market cap could be a fake data. we have to be smart which one is real wich one is fake.
do not be easily affected by seing the market cap has grow quickly.

Problem is: we will have to actually verify that you have 1 billion btc on the blockchain and know that it is all fake, so market cap is not a poor metric to gauge a coins desirability and those who use it are not idiots.

Have a look at coinmarketcap.com

imagine a market place with a baseball hat on, bad joke - The "cap" part of the term is short for capitalization, which is a measure by which we classify a companys size.

In crypto Marketcap is extremly poor indicator, almost useless.
A better way to judge is how many coins at what price sold on average for the past month or so. Also Volume is important.

market cap will shown how
yes some datas could be manipulates to makes some condition of dumping in 1 or few coins, maybe it is could be ways to promotes  the product it self.

It's actually quite simple.

It's basically the number of coins that exist or will exist.

Many coins are minable meaning that the current market cap is still increasing.

Other coins are pre-mined. All coins are in the market.

Other coins are again pre-mined but are not yet circulating in the market.

You can check more at https://coinmarketcap.com

Market cap is quite easy calculation with coins price multiply number of coin supply. It basically shows how much that coin worths as its wholeself.

Simple math taking into account the current price vs the available coins/tokens.

Take that value with a grain of salt since that doesn't equate to real money... it is just to give an estimate on the realtime total value of that coin/token.

Sum up all the coins/tokens and you get the full crypto market cap and those crazy billions :P

What is "Market Capitalization" and how is it calculated?

Market Capitalization is one way to rank the relative size of a cryptocurrency. It's calculated by multiplying the Price by the Circulating Supply.

Market Cap = Price X Circulating Supply.

It's just the fundamentals of economics which definitely apply to coins of any kind, including alt coins. It indicates whether the coin is in demand or in supply, and it surely has the influence on the coin investment potential. In case the coin demand is higher than the supply, the coin value increases and, thus, the market cap does too, raising the interest of potential investors.

yeah i agree with you but some time we got huge profit depending in where point you stand for buy and where you sell.
even that very risk but we know all trading,investments are lots of risk but i take benefit from that situation some time  ;D

As I know the Market Cap is the total volume of an Altcoins / Bitcoins. This is what they are presenting to the public. And when the market cap is high it will also increase its price. But be careful because others are manipulating to say that they are successful. It is also behind the people who own an altcoins (company) To encourage people to invest in their Altcoins

market cap is a supply of coins in the market that circulate in the community during the sale and purchase,
if the supply of large coins prices usually tend to be small

how accurate is the market cap on coinmarketcap?

Outstanding coins * value

Is coinmarketcaps reliable - with larger coins yes - with smaller coins no

Market cap or market capitalization means the value of the growth of a company. It is the total market value of all of a company’s outstanding shares. Every company has a market cap of less than $250 million

Good luck to your studies about alt coins.


Market cap is total amount of it's value in the market, like bitcoin it has $64 Billion in total market cap and it will be divided with the total circulating coins in the market equal to it's price now.

Actually the success of coin can be measured with it's market cap because it is the indicator on how many people trusted that coin and invested bigger amount with it.

But it's not the only measurement of a coin to say it's a successful one.

market cap is just all of the total value of that specific kind of coin(s) at thier price point at that time. Market cap will and would always depend on it's price point.

Market cap is short term for Market Capitalization. Market Capitalization is also known as Market Value of the outstanding shares of a company. It is found by multiplying the stock price to the total number of the shares outstanding.

Does market cap mean nothing at all? I think Market Cap has some roles to play. The bigger the market cap means the project has some huge potentials because it indicates how much the company or the project is worth. That is why some investors are taking notes of the market caps of coins.

I think you can take it as an indication, but like the guy in the first post said they are so easy to manipulate so it is hard to compare to other projects.

Market cap determines the value of a coin, you should look at it when investing rather than looking
at the token price

in Cryptocurrencies, Market cap means NOTHING.  All it represents is a time slice price on a given market and the total amount of coins available.

Many people believe that Market cap represents how much actual fiat currency has been put into a coin, thus a coin with a high Market cap much have a lot of people/money invested in it, therefore it should be a relatively safe trade.   But that is only the case in terms of fiat currency where the currency is backed/tied to something of value, and not where sometimes the majority of the coins in circulation are pre-mined.

I will give you an example with a strange coin that existed a few years ago named Marinecoin.  MarineCoin premined 99% of all the coins, was about 100 billion of them.  The then mined the rest out at a rate of something like 10 per block.   They then had a website where they sold coins at a stable rate of something like $0.10 each.  Their goal was to purchase an island in the Atlantic and start their own country where the only currency would be MarineCoin.  They also offered people that owned tens of thousands of their coins free rentals on their fleet of Yachts they planned on purchasing.  Very few people fell for it, but for those that did, they valued the market cap of the coin at around $10 billion, which was way bigger than BTC at the time, even though I would doubt or hope not more than a few $100 were ever dropped into the coin.   

Probably the only good answer in this thread
Thanks.

I would add that, it is not the size of the mcap that drives its reliability, the $ volume exchanged.
Coins with a lot of volume have a reliable marketcap. With low volumes, you may have pumps and manipulatik s.

One other good indicator is the mcap on total supply, assuming that the coins will be released in a short period (founders rewards, etc...)
See MCO for instance, and XRP on the other hand

Make sure you understand the difference between “current” and “total” supply (rtfwp!)
Avoid low volumes coins except for speculative moves
Use the mcap to drive your decisions. Not the unitsry price.

And ... don’t trust anyone here, we’re all full of shit ;-)

Market capitalization (market cap) is the market value at a point in time of the shares outstanding of a publicly traded company, being equal to the share price at that point of time times the number of shares outstanding.