What happend if total capital market of cryptocurrency reach $ 1T

[dankJ]

The market cap is a total sum of the price of an asset times the number of unique asset pieces that exist.


which is exactly the same analogy i used with my having 5 of something worth 100 each.  

I understand what a market cap is.  And i am arguing that it does have some value in comparing 2 different things.  even if it is 2 things that have nothing to do with each other.  how much value?  again...i'm not making investing decisions on it, but its simply a little nugget of information within a much bigger picture.  that's it.  a small tool in a huge tool box.

Thank god! Someone with a brain that can take over. I’m leaving this thread. It’s making my head hurt.
 

ahh my apologies...and here i thought we were having a somewhat intelligent conversation/debate about something...

because we all have much to gain in the crypto world from personal attacks and slinging mud (cant speak for anyone else, but thats why I found my way to this forum...a healthy, productive exchange of ideas, opinions, knowledge, etc) ...good example from a 'legendary member'

Legendary member means we've been around for a long time and RNGesus blessed us with a good roll on getting the status, provided it is not always changing at 740 activity now.

The thing with your statement that you can use the market caps to compared to each other somehow is fallacious at best, there is nothing to compared beyond getting a rough idea of just how much money an asset is worth in a certain asset at a snapshot in time. It can change very rapidly and this goes doubly so for small cryptos, since they can go up and down off of the results of just a few buy or sell orders. It's a representative factor of the last order value * the number of assets.

Have you ever wondered by a majority of price aggregation and average platforms do not include the market cap? Because it is something not worth paying attention to in the grand scheme of things.

Thinking there is some sort of arbitrary "It should be worth x% of Bitcoin" is a terrible means of considering investments in cryptos, since there is no revenue to go off of like a traditional stock with a company behind it. Even as a "jumping point". There is no value in looking at those metrics in these environments like there is in FOREX or otherwise.

EDIT: Weird-ass formatting

Fantastic post!!!  THIS is productive.  Again, I am new to the crypto currency world...but my education and trading experience in other tradable markets goes back nearly 20 years.  So, yes I am a 'newbie' on here...but I am confident my experience can be of some minimal value as ideas get bounced around.

Back to the topic...seeing that I am new to cryptos... can you help me understand why you feel there is no value in crypto world versus any other value that tool may (or may not) have in other asset classes, like FOREX?     Because, when I am looking at a market cap..the information i am seeking is EXACTLY how you classified it: simply a rough idea of an assets 'value' at any given snapshot in time.    Why would the value of knowing that information be different for a coin versus a currency or stock or whatever?  

The more research i do, the more and more i realize the crypto trading world (and just in general) is much different than other markets.  I am finding there are many different things to take into consideration as i start to put some small money at work here...especially in very short term scalping trades.  granted, these coins may not have revenues like GOOG or whatever...but still...the price of the coin is still its perceived value at any given moment in time.  In that sense...why is it any different than any other asset class? All the formalities and technical stuff aside...should a short term trader care how its fundamentally different than a stock or futures trading?  


(and just for full disclosure for whatever its worth..i own small amounts of BTC and ETH as well as a scalping position in BNB/USDT hoping for decent bounce off upward trending support line on 6hr chart)

[Yakamoto]

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Fantastic post!!!  THIS is productive.  Again, I am new to the crypto currency world...but my education and trading experience in other tradable markets goes back nearly 20 years.  So, yes I am a 'newbie' on here...but I am confident my experience can be of some minimal value as ideas get bounced around.

Back to the topic...seeing that I am new to cryptos... can you help me understand why you feel there is no value in crypto world versus any other value that tool may (or may not) have in other asset classes, like FOREX?     Because, when I am looking at a market cap..the information i am seeking is EXACTLY how you classified it: simply a rough idea of an assets 'value' at any given snapshot in time.    Why would the value of knowing that information be different for a coin versus a currency or stock or whatever?  

The more research i do, the more and more i realize the crypto trading world (and just in general) is much different than other markets.  I am finding there are many different things to take into consideration as i start to put some small money at work here...especially in very short term scalping trades.  granted, these coins may not have revenues like GOOG or whatever...but still...the price of the coin is still its perceived value at any given moment in time.  In that sense...why is it any different than any other asset class? All the formalities and technical stuff aside...should a short term trader care how its fundamentally different than a stock or futures trading?  


(and just for full disclosure for whatever its worth..i own small amounts of BTC and ETH as well as a scalping position in BNB/USDT hoping for decent bounce off upward trending support line on 6hr chart)

What I mean when I say that a market cap is a rough snapshot is that it just shows the total sum of potential value, not realized value, if the entire asset was to have all of its tokens liquidated at the current market price. It doesn't help when we have such a large variety of coins which each have their own uses, supplies, and rules to govern each of them individually.

The big difference as to why market cap for stocks is a decent metric for guesstimating and not for crypto relates to what I just said; cryptos have variety in their rules and concepts, stocks do not.

A stock with a small market cap but operating as a productive company and bringing in a revenue an x% the size of a large company could comparatively have a market cap in a 2-4% range of the larger one, and then if it is under it could be seen as undervalued and if it is over it would be overvalued, so on and so forth. Same goes for comparing individual stock prices.

Market cap is also great for companies since it helps investors see just how much money is embedded within a certain company, consequently how much their own money impacts the stock and how much investment potential may exist.

None of what I have said in my last two paragraphs has any sort of relationship when it comes to crypto. That is why market cap is a bad metric of measurement for cryptos; because it was made for something completely different which could be used as overall comparisons and numbers for a bigger game. Crypto doesn't have ANY of those same traits or comparisons.

I have included a link below, in plain text with some address portions spaced apart so you can read it and it doesn't get blocked, which demonstrates why market cap has more value in stocks, and I hope you can extrapolate why it is less effective for crypto.

https://www. fidelity .com/learning-center/trading-investing/fundamental-analysis/understanding-market-capitalization

This is also the longest post I have written in a long time so thanks for that, it's not often I really get to grind into something and talk about it on here.

[PrasannaPR]

  Please dont make this conversations more funnier. How is that even possible to think.