Why market cap is irrelevant

[Mandoy]

Data from the last 24h:

Total market cap of bitcoin and some unnamed shitcoins in last 24 hours
72 billions > 64 billions
24 hours trade volume 3 billions(including trading between shitcoins)

Even assuming all the volume was from sold coins the market cap went down 3 times more.

So everybody concern with the fall in market cap and billions evaporated please take a break and breath.
There is no Armageddon happening, no whales running with billions, no Chinese mafioso withdrawing trillions from the market.


There are 1 million coins with 100$ price.
I sell 1000 coins and the market cap drops to 99$.
I pulled out 100 000$ but the market cap dropped by 1 million.

Marketcap is irrelevant.

And this should scare the shit out of people who invested in coins based on their rank on coinmarketcap.

Market cap is not relevant and actually it is very helpful for us traders to decide on which coin should we invest on. The determine the market cap we need to multiply the current or average price of the coin with the total amount in circulation. If we just look at this definition we could somehow say that marketcap is irrelevant and useless since the marketcap is not the real value of all coins in the circulation since only a few orders were in that value. But even though it may seem that way marketcap is not useless and even in the stocks market it is also being used.  It may be hard to understand but we see the marketcap as a guide in our trading and thus it is very helpful. Checking the marketcap against the volume and the total number of coins in the circulation we could somehow predict the possible price flow of a coin.

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[error08]

Data from the last 24h:

Total market cap of bitcoin and some unnamed shitcoins in last 24 hours
72 billions > 64 billions
24 hours trade volume 3 billions(including trading between shitcoins)

Even assuming all the volume was from sold coins the market cap went down 3 times more.

So everybody concern with the fall in market cap and billions evaporated please take a break and breath.
There is no Armageddon happening, no whales running with billions, no Chinese mafioso withdrawing trillions from the market.


There are 1 million coins with 100$ price.
I sell 1000 coins and the market cap drops to 99$.
I pulled out 100 000$ but the market cap dropped by 1 million.

Marketcap is irrelevant.

And this should scare the shit out of people who invested in coins based on their rank on coinmarketcap.

And why you mentioned included shitcoins too if it isn't irrelevant? If you're talking about bitcoin marketcap, then it would be more focused on current events regarding bitcoin price drop back to $1820, then the market cap should be decline as well because it is related to bitcoin price.
I've never so concerned to market cap and I guess people always look at the prices, whether it goes up or down.
No Armageddon happening, I agree with that ; it just another market manipulation by some people keep spreading false news about bitcoin crash.

[Theb]

I don't think it is totally irrelevant when it comes to trading or investing in general. The market cap is a way to determine where the market is participating more. For example Bitcoin has the largest market cap among the cryptocurrencies meaning that in terms of Volume and Price Bitcoin is the number one cryptocurrency. Being the largest market cap in cryptocurrency means that it is more volatile compared to other currencies meaning that is can be profitable for traders. Other than being the largest market cap traders also observe sudden surge in market cap which they have a chance to participate in.

[stompix]

Being the largest market cap in cryptocurrency means that it is more volatile compared to other currencies meaning that is can be profitable for traders.

Why?
The eth market was far more volatile at half the value.

Until you come out with a better metric, market capitalization is going to stay.
At least, it gives you an idea of the value of coins in circulation. It can be manipulated, but that doesn't take away its usefulness.

An ideea , probably..
Because nobody has a clue how many coins are in reality in circulation.
Has satoshi lost his coins?
Are all the coins listed as lost in here really lost forever?
https://bitcointalk.org/index.php?topic=83794.0

[stompix]

3   Bitcoin Cash Bitcoin Cash   $10,335,537,178   
10 billions out of nowhere, with people unable to transfer their coins...but still  10 f billions.

Any reason why we should even bother talking about marketcap in cases like this one?

I've had a few "expert" opinions in this trade about circulating coins.
How does it stand about bcc?

[farhaan]

Data from the last 24h:

Total market cap of bitcoin and some unnamed shitcoins in last 24 hours
72 billions > 64 billions
24 hours trade volume 3 billions(including trading between shitcoins)

Even assuming all the volume was from sold coins the market cap went down 3 times more.

So everybody concern with the fall in market cap and billions evaporated please take a break and breath.
There is no Armageddon happening, no whales running with billions, no Chinese mafioso withdrawing trillions from the market.


There are 1 million coins with 100$ price.
I sell 1000 coins and the market cap drops to 99$.
I pulled out 100 000$ but the market cap dropped by 1 million.

Marketcap is irrelevant.

And this should scare the shit out of people who invested in coins based on their rank on coinmarketcap.

We should not invest in any altcoin on just seeing its market cap.Market cap is irrelevant.Market cap could be increased easily for an altcoin by just placing a high sell order for a coin.Market cap is calculated by multiplying total number of coins available with the last price of sell order.So,it could be easily manipulated.

[iluvpie60]

market cap created to monitoring price for every coin/project and many people use it to make a preparation and action,but you can see low cap coin had a good action.

But for me,a change in market cap only show that 'something' will happen soon,which is will lead for further action

Market cap created the perfect tool to attract newbies by artificially inflating the numbers.

They mine 1 million coins they release a thousand in reality which they can buy for 10$ a piece.
And suddenly that crapcoin has a 10 million market cap and noobs flock.
And in one week time most of them get fleeced.

I think you should more say that the MarketCap is misleading for almost all Altcoins.

It is definitely a useful tool in determining the current price/volume per day and what not.

I agree that the price with having a ton of coins or whatever is misleading too. What was that coin that only had 24 coins or something stupid, but it had 8 decimal places. So everyone trades in terms of those decimal places.

[jhenfelipe]

~snipped
And this should scare the shit out of people who invested in coins based on their rank on coinmarketcap.

I won't use the word scare, but EXACTLY those who invested in coins based on market cap will be the one's to be affected. I definitely not belong to them and honestly didn't even check those market cap numbers when deciding whether to invest in coin or not. When it comes to trading I'm more on checking if the market is active on a specific exchange (I'm more on doing short trades that's why).

[Rahar02]

3   Bitcoin Cash Bitcoin Cash   $10,335,537,178   
10 billions out of nowhere, with people unable to transfer their coins...but still  10 f billions.

Any reason why we should even bother talking about marketcap in cases like this one?

I've had a few "expert" opinions in this trade about circulating coins.
How does it stand about bcc?

There's nothing wrong about market cap as it's just a result from coins price and amount in circulation.
10 billions bitcoin çash market cap come from amount of this coin in the market/people hands and its price that at that time maybe around $650. But look at current price of bitcoin cash at $275 and the amount in circulation is 16,487,425 which mean its market cap is $4,548,682,708. The most important thing that affects market cap is the price of every coin, and the same thing goes for bitcoin.