Bitcoin Forum

Hello,

Ok so, everytime you take a look at a coin's price prediction with a google search, like for instance Cardano, you always have the hopeful heard that says "10$ by the end of 2018!" if not more, while some more rational people will say it's not possible, 2$ max, because with the supply of coins (which is 25 billion for ada according to cmc), a 10$ share would mean a 250 billion market cap.

So in essence, rationally, you can sort of predict a coins price by simply looking at coin supply and doing basic math.

Yet, it is a known fact that Ethereum for instance has no coin limit. Although there are not as many coins as Ada (about 100 million to round it up), people are today still ready to pay up to 1400$ a coin, which means an MC of 140 billion USD not a week ago. I'm pretty sure that 1400$ is still the lower/middle end of what 1 ETH will be valued at some point. Heck, it was barely worth 7$ a year ago, and I bet you people were saying the same thing back then "1000$ not possible".

Same thing with the global market cap, what were people saying 3-4 years ago? I bet a trillion market cap seemed pretty impossible.

History repeats itself. People are not rational when it comes to cryptos and we are still in what you could call early stages. It's only been what, a few months now that Bitcoin has gathered interest from the masses. What's your impression? Is marketcap really an indicator? Because when you take a look at Cardano, it looks like a waaay better version of ETH. And as much as I like Ethereum, it's starting to show it's weaknesses and I feel the roadmap and general news about the coin don't make up for the price of 1400$.

So yeah, just curious to see what other's think.

Cheers

This question is asked before and i don`t know why people continue to ask about marker caps.
The market cap doesn`t matter to me.The current price of a coin is the only thing that matters.
Let`s say that i create a brand new altcoin with 1M coins limited supply.I will list that coin in some crypto exchange platforms and buy a few coins for 1$ per coin,using multiple accounts that i`ve created in those exchange platforms. This would mean that i will pump my altcoin`s market cap to 1M USD,using only a few hundred,or maybe thousand dollars to invest. ;D

Market cap and market valuation are different. Like davis196 mentioned, it is quite easy to create a coin with unlimited supply and pump it up to have a big market cap. Does it mean the coin has any significant market valuation? No. Market cap indicates the current demand of a coin, specifically short-term. You can't simply predict if a coin is going to be in demand in future based on current market cap, valuation matters.

Market cap is nothing to do with the price, it is just the number of shares sold for that particular altcoin. The price will be raised by the way the team drives and also their company reputation is open market. It is all based on so many factors and not only with market cap I mean.

Cardano don't have such a huge amount of projects based on it like ethereum have so its price is not that strong as ETH and probably won't be unless cardano will prove itself on practice. I do not recommend to take market cap as the only indicator, everything should be analyzed in a bulk. The price change of 1 cent may change the market cap by millions, that is not serious.

Market cap is simplified basis but thus not provide the real time value. It can be a good reference but sometimes its not, most traders use it as standard monitoring but some don't. It still depends on where you're trading at.

it also helps to compare the possibility of growth between two crypto or one crypto and the centralized platform it want's to be the crypto-pendant.

Aside the fact that in your write up, it seems you are trying to promote a particular coin which in your message talks about how its being better than ETH.

On the issue of volume of a coin, what matter is not the maximum volume but the amount that is available in the market at any point in time. A 25 billon coin would probably worth less than 10 cents if everything is released to the market now today compared to an unlimited coin which the number in the market is way more less than what the buyers want and that will increase the.

On market cap, it's simply the price of the coin multiplied by the volume at any point in time which does not matter at a coin of 1$ with 10 million coins would worth $10,000,000 compared to the one with $5 market price and 1,000,000 in circulation. Which one exactly do you think I want to put my money? The one with the high value of course.

Marketcap does have some impact on where a coin can go but the bigger thing you must look at I think is the overall industry in terms of how much money is in, how much is looking to come in, and the volume at which it comes in.

The marketcap means everything, i always try to invest in those coins who have a marketcap of less than $20 millions of something aproximate to that, because they have a bigger room to keep going up. It is just pure math, if you invest in a coin that has 1 billion of marketcap, you have less chances of making a x10.

You are right supply might not matter when the demand is there supply wouldnt matter but here it is 250 bn which is never a small amount having such a cap would have a really big difference on the total cap. This is something which wouldnt matter in future but currently market cap of a coin is most important for the price

This is the reason why I don't really bother to see on its marketcap and same on the thing you do illustrate here we can really able to make such thing on pumping market cap of a certain coin. Basing with it all the time is pointless. The main important thing for me is on its current price and take a look also on its circulating/total supply but not generally. The thing here is that demand would really always make the decision.

Market Cap equals the product of the current coin supply & the current coin price.
For instance, Ethereum is at $1030. Its final coin supply is unsure, but its current coin supply is clear; 97 million ETH. Therefore, the market cap of Ethereum is about $100 billion.

Of course, it's not a perfect way to predict a coin's price, but it's far more accurate than simply looking at its price. The market cap indicates how much money is invested in a coin and how much demand is there.
If you multiplied the supply by 1000, the demand would have to grow 1000 times too, to reach the same price as before. The price doesn't show anything about its demand/supply. It simply shows how much people are prepared to pay for it currently, which isn't a good indicator of future price movements.

Marketcap as you said is really the no 1 driver behind price, the demand will be there up to a certain market cap and though it goes against simple economics it's a case where price seems to be decided by demand and market cap more then demand and supply. Myself speaking the price of a coin is not relevant at all, it is the growth of that coin that is relevant and that's where market cap comes in.

Market cap to me is important not that it determines much in cryptos but it is used to know the popularity of the coin. Off course , it is the interaction of price and the volume of interaction on the coin.

However, it is not solely a determinate of a good. The total supply of a coin and purpose is important.

The total market cap of a coin doesn't really determine anything about its real value for me. But to most traders, however, it speaks volumes about the capability of the coin's market to generate them some nice profit and the potential of that certain market to grow big. Also, predicting future prices of the coin via its current market capitalization is somehow nonsense; you still need to factor the total demand for the generated supply since if there are more coins available than investors wanting to buy them, how could you expect a coin to increase in price? Also, bitcoin, as an example, has broken that way of thinking already and is continuing to do so. Supply and demand dictates the value of a coin; market capitalization is just the manifestation of those two combined in real world scenarios. You can't predict the price in market capitalization alone, you need to factor in other things to make a sensible prediction.

I think so. Although the cap is quite important, to me, the most important thing to do to evaluate a coin is its practical application and future direction. can go long or not I believe that investors want their investment to be profitable and hence careful research is essential.

I think there is no connection between altcoin prices and the market, which is the rise and fall of altcoin is the company's success in attracting investors for investment in the company, the market only determines the amount of volume in the market

The market caps,is so very important to all the bitcoiners because there you can determine that your coins is still in the rank in all coins in the market and determine that your coins is still profitable or not profitable,because all of us,wants to gain a biggest profits in terms that we must done trading  investment.market caps is like digital information for all bitcoiners where you can determine the popularity of your coin and determining the value.

I don’t really know what to say, but one thing I’m sure is that most of the times, market cap doesn’t determine the price rate of a stock or asset. Sometimes, the people devs just choose which price rate to sell at. But I will still say that it is important, cause it has its own roles to play.

Actually marketcap has nothing to do with the value of the coin.For example,if we have a newly launched coin having a total supply of 21 million coins and now the coin's market price is just $1,then now its actual marketcap is 21 million dollars.If a person voluntarily places a sell order for $4 for that coin and buys that coin at that rate,then the marketcap of that coin is calculated by just multiplying the total number of coins with the last sold price of $4 and now the marketcap becomes $84 million dollars.

I also use it as an indicator of a coin's ceiling. When Ethereum was making its run a few weeks ago, its market cap reached over half of Bitcoin's. I thought then that there's no way that Ethereum's value could double at that point, because that would essentially mean that it's as valuable as Bitcoin. It's a very rough metric though.


You can't really pump market cap value because increasing the supply is tantamount to decreasing the price. No entity can dictate a price either, because the market will want to pay what they think it's worth.

Either way, market cap is relatively meaningless, but could be used as a somewhat accurate indicator of a crypto's overall value, and the general growth of the entire market.

Its inter related with value as well. The more the market gap falls in, there are lots of chances for values to increase. XRP market gap has been an example in recent days. Coinmarkekcap.com would explain in details on values and market Cap.

More the demand increases to a coin, the more the value increases.