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Title: Cryptocurrencies Price Determination Post by: KCR on December 16, 2017, 06:03:42 PM Hi..I am a newbie to the cryptocurrency field, I know there are so many factors that drives the cryptocurrency price
One among them was the Circulating Supply. Can someone help me in understanding the below concerns How is the price of a Crypto is determined using the Circulating Supply? How are they related? Can we predict the price of a certain Crypto using the supply? Please do let me know. Thanks and appreciated your help Title: Re: Cryptocurrencies Price Determination Post by: secondgarlic on December 16, 2017, 06:14:02 PM The supply is certainly an indicator, but doesn't tell the whole story. If a coin's supply is huge, chances are, one coin's price will not be that much. However, instead of the supply I'd pay more attention to market cap, trade volume and overall news surrounding the coins (new partnerships, shifts in public perception, etc.).
Title: Re: Cryptocurrencies Price Determination Post by: stompix on December 16, 2017, 06:16:55 PM Hi..I am a newbie to the cryptocurrency field, I know there are so many factors that drives the cryptocurrency price One among them was the Circulating Supply. Can someone help me in understanding the below concerns Please do let me know. Thanks and appreciated your help How is the price of a Crypto is determined using the Circulating Supply? It is not. How are they related? They are not related. Can we predict the price of a certain Crypto using the supply? No you can't. Bitcoin cash has almost the same circulation supply as Bitcoin, yet the price is 10 times lower. Also there are only 85,738 APW, yet the price per coin is $0.000189 . However, instead of the supply I'd pay more attention to market cap, You realize how stupid that is ?Market cap = (circulating supply) x (price per coin) So you don't pay attention to how fast you're going, you're paying attention how many miles you're doing per hour. Title: Re: Cryptocurrencies Price Determination Post by: 777asianinvasian on December 16, 2017, 06:29:48 PM The supply is certainly an indicator, but doesn't tell the whole story. If a coin's supply is huge, chances are, one coin's price will not be that much. However, instead of the supply I'd pay more attention to market cap, trade volume and overall news surrounding the coins (new partnerships, shifts in public perception, etc.). Yeah don't focus on marketcap because sometimes coins are in the top 100 with small volumes of 10-100k and those are most clearly pump and dumps. What you should pay attention to most in my opinion is the other noise of volume and news like this person pointed out. Marketcap gives an indication sometimes but only if the volume is a fair representation of that cap which isn't always the case. |