Bitcoin Forum

Hello

so i am aware of the hard fork that generated BTC cash and the hard fork that will generate BTC gold, but what confuses me is the prices and market caps that these coins gains so fast !!

i was here when BTC cash is forked, in the first hours it reached 10B market cap !!

does that mean that the whole cryptocurrency market increased 10B ??

is it like 10B $ just transferred to the crypto world from fiat ??

This newly formed price is indicator how much is someone willing to pay for one BCH and market cap is result of multiplying this number and total number of coins which are in circulation. Now you know there is no real money behind and everything is based on demand, better do not bother yourself with this, better investigate what is this project all about, and find out what others thinking.

No, it doesn't mean that fiat was turned into crypto, it just means that the price of the last transaction for a coin (be it, BCH, BCT) is multiplied but the total supply of that coin. The market cap doesn't mean much at all, it's just an idea (although most times a bad one) of the worth of that coin compared to others.

Each coin is worth what people are willing to pay for it, so it's just speculation. If it's a fork of bitcoin then it has some big reputation to start with. As for whether it has come from fiat or not... 'Money' in any sense doesn't really exist, it's all speculation. If your house is 'worth' $500k, that's because the market suggests that people are willing to pay $500k for it. If no one is willing to buy it, then it is worth what people are willing to pay for the bricks etc.

It's really hard to understand but there wasn't any fiat pump. Bitcoin cash had very strong marketing and they've started to trade futures before the hardfork. This means that if you have that futures you are able to recieve some amount of asset in the future. I don't remember how much exactly they did cost, but I suppose this fact become major at pricing of bitcoin cash after the hardfork.

you are right i better forget about this market cap thing and focus on other things,

thanks

Yes indeed the total cryptocurrency market is increased by the marketcap of individual new coin.
The already high value is due to already the total amount of coins in the market issued till the forked block.
It can be justified in the sense, the distribution would be as decentralized as the distribution of bitcoin.

In the end both are only shit coins which have been forked from the only real chain: Bitcoin

I think it does not matter how hard the creators of those coins will try to build up some business models around the forks, they will fail.

marketcap is just calculated based on the highest demand then they do x the number of supply, is not a good value to see the real capitalization of a coin, because not all the coins in circulation are being traded on exchange, just a small portion

Because it's a fork, there are a lot of existing coins in circulation.

Whereas a brand new coin will only have a few coins in circulation, and hence their market cap will be lower, regardless of the price per coin.

What are real goals of  new fork BTC gold? I read a few articles about. But they say more about future mining than about conditions of the fork.

so when we say cryptocurrency have a market cap of 170B we don't mean that there is 170B fiat money flowed to crypto ?

You can not worry that the price of bitcoin gold after bifurcating it with bitcoin will be too high. The Yobit exchange started trading bitcoin gold even before its appearance as a result of the fork from yesterday, setting the exchange rate at 460 dollars. Since its course can not be very different by rules on other exchanges, its rate will fluctuate within these limits.

Not really this is probably the main problem of cryptocurrency the market cap sometimes increases by $10b as you said but there is no flow of money the price is increasing therefore the total market cap is also increasing. Money is not always transferred from fiat if you bought btc at $2k sold at $4k this doesn't mean you paid additional $2k just because the price increased of btc so is your money in fiat increased.

ok now i got it

but is there any way to know how much fiat is invested in crypto ??

Actually, bitcoin gold has no difference to BCH known as bitcoin cash. Where in the beginning it is more on hype only then in the end the was dropped little by little.  I think Bitcoin on the first week it will pump the price value same scenario for what happen to bitcoin cash anyway.

just like me, I am also very confused with this branching,
bitcoin cash and bitcoin gold is just a scam coin