Theoritical max value of an altcoin

[wiwa]

I'm relative new to the altcoin market. I was wondering if there is a way to calculate the theoretical max value of a coin based on the market cap and the total supply.

This question was triggered when I read somewhere that Ripple has to potential to reach to 10USD/Ripple. I was wondering how they go to that number. Must be some logic behind, if not ...it's just a way to pump the coin, no?

[thehiddenconifold]

There is no 'Theoretical Max Value' for any coin. A coin's potential value is usually gauged by the total size of the market it finds itself in. But the market could also increase in size, thereby increasing the value of the coin.
 As for Ripple, its usually compared to the likes of PayPal. Given the current claimed capacity of Ripple, it can transact upto 1.1 Trillion USD, I believe. Using that number as its market cap, each coin could have a value of around ~29 USD (@the current supply)



Reference: CoinMarketCap.com

[alani123]

No such thing as theorretical max value, that's why -in theory- risk is infinite when going short on an asset. Some completely theoretical hard limits would be the amount of money in the economy but it's pointless to speculate on such theoretical scenarios.

[Ayers]

I'm relative new to the altcoin market. I was wondering if there is a way to calculate the theoretical max value of a coin based on the market cap and the total supply.

This question was triggered when I read somewhere that Ripple has to potential to reach to 10USD/Ripple. I was wondering how they go to that number. Must be some logic behind, if not ...it's just a way to pump the coin, no?

you are confusing, it's the other way around you can calculate the marketcap based on the supply, you can't calculate the value of a coin based on the marketcap, this doesn't make any sense because the marketcap is the value lol, but you estimate how much a coin can go high, based on many varaibility, like active dev, investors, volume, features etc...

[TreasureSeeker]

Take a look at http://money.visualcapitalist.com/all-of-the-worlds-money-and-markets-in-one-visualization/    and you'll see there's immensely huge upside potential in Bitcoin and Altcoins compared to world money supply. The page is slightly out of date as Bitcoin's market capital is now 23 billion rather than the 5 billion quoted on the page, but world money supply would be higher since the page was produced too. 

Search for "world money supply" on google images to get some interesting graphs.

[Kevin77]

As everyone said there is no theoretical max but if we take the approach for how much money exists in the world and if we exchange all of it to coins than there is about 90 trillion dollars worth of currency out there, that is of course talking about papers and coins and so forth, if you consider the derivatives are alone 1.2 quadrillion dollars, that can go up by a huge margin if we take non-paper and non-coin “money” that is basically made up and not real.

So, something from 90 trillion to 1.5 quadrillion is the “theoretical” max, however I doubt it will go that much.