BCH launch shows us how irrelevant marketcap can be

[olushakes]

Its really hard to just conclude that market capitalisation is just irrelevant because of the issue about BCH because there is a basis for everything and BCH won't be any difference considering the fact that by default the BCH is created in relation to the availabe BTC out there and with one exchange having a price, its enough to calculate the amount of capitalization without any difficulty.

[1714048966]

1714048966

[AK47-]

Marketcap might have little or no significance among currencies in cryptocurrency market. But we can't neglect the relevance of marketcap when we compare two different commodities like gold and Bitcoin. Marketcap are very important to know about the acceptance and popularity of various commodities and for knowing the future potential.

[hatshepsut93]

Another common misconception in crypto community is measuring value of altcoins in USD. You can often find statements like "this ICO raised $20,000,000" or "that altcoin increased in [USD] price by 20%".
People ignore the fact that altcoins are pegged to Bitcoin, most of them can only be traded for it on exchanges, and even when there is an option to trade altcoins for fiat, most traders still chose the BTC pair

I'd rather say that your claim is the real misconception

Litecoin had been making local highs in BTC which is the opposite to your claim that "when Bitcoin is falling, altcoins usually don't change their BTC price, or even fall". Obviously, this is no longer the case. Major altcoins are pretty solid now and in no way are dependent on Bitcoin.

One anecdote doesn't prove anything (in that case LTC got pumped because it had SegWit, while Bitcoin miners were signalling), there is a strong correlation between BTC and altcoin prices.

Marketcap might have little or no significance among currencies in cryptocurrency market. But we can't neglect the relevance of marketcap when we compare two different commodities like gold and Bitcoin. Marketcap are very important to know about the acceptance and popularity of various commodities and for knowing the future potential.

It's a bit better in Bitcoin's case, because it has been circulating for so long, and has very high volumes now, and is traded against USD.

Its really hard to just conclude that market capitalisation is just irrelevant because of the issue about BCH because there is a basis for everything and BCH won't be any difference considering the fact that by default the BCH is created in relation to the availabe BTC out there and with one exchange having a price, its enough to calculate the amount of capitalization without any difficulty.

Marketcap is misguiding because you can create millions of coins, sell a few coins for some hundreds of USD and claim that there is "multi-billion network", "third most valued cryptocurrency", etc. This is just a method to trick noobs into buying shitcoins.

[alani123]

Yes, market cap is truly irrelevant when order books are so thin and trading volumes so small compared to the cap. There's no strong resistance for some cryptocurrencies and prices are very easy to manipulate, something that's likely to trigger a market wide reaction amid such a market sentiment.

[merchantofzeny]

The only reason Bitcoin cash is avoiding a pump dump on it's value is it's slow and unstable network once it stabilize and exchanges started accepting deposits of BCC/BCH whatever you want to call it, you'll see a big price fluctuation as users can already exchange it for bitcoin. The reason why it had a big price after the fork because users was unable to exchange it but some of them found a way to sell it that's why the price continued to decrease in passing days sooner or later it may reach it's all time low in just a week or even days.

That's what I also think about it sir. Some exchanges are still not accepting it. Some are even having problems with sell orders. Maybe they are still fixing stuff to allow them to accept bch. I think people would just dump these once it becomes easy to do though. It's basically free cash from your btc...

It will continue falling for sure. 99% of altcoins end up dying and Bitcoin Cash is no different. I give it a year and it will be dead. Split your coins and dump now or you will cry later.

I don't even know if it is possible to split mine now because they were on an exchange and I forgot to move them to my own wallet so I think I am screwed...

I heard Coinbase is crediting BTC holders BCH equal to the amount of BTC they have left in their wallet before the fork. I'm not sure about Poloniex and others though. I'm actually having problems completing sell orders in Polo. They just get stuck there, sigh.

EDIT: Just checked now, still stuck. This is like the 3rd day already...

[eaLiTy]

Yes, market cap is truly irrelevant when order books are so thin and trading volumes so small compared to the cap. There's no strong resistance for some cryptocurrencies and prices are very easy to manipulate, something that's likely to trigger a market wide reaction amid such a market sentiment.

You cannot completely tell that the market cap is irrelevant because there are many coins which have potential and are good ones ,it might be true when it comes to shit coins with unlimited cap,they could just have a billion coins and could have a bigger market cap,the launch of BCH just added a few billions to the market cap and i am really interested to know how that will perform in the future.

[deisik]

Another common misconception in crypto community is measuring value of altcoins in USD. You can often find statements like "this ICO raised $20,000,000" or "that altcoin increased in [USD] price by 20%".
People ignore the fact that altcoins are pegged to Bitcoin, most of them can only be traded for it on exchanges, and even when there is an option to trade altcoins for fiat, most traders still chose the BTC pair

I'd rather say that your claim is the real misconception

Litecoin had been making local highs in BTC which is the opposite to your claim that "when Bitcoin is falling, altcoins usually don't change their BTC price, or even fall". Obviously, this is no longer the case. Major altcoins are pretty solid now and in no way are dependent on Bitcoin.

One anecdote doesn't prove anything (in that case LTC got pumped because it had SegWit, while Bitcoin miners were signalling), there is a strong correlation between BTC and altcoin prices

Are you in your right mind?

Litecoin is decoupled from Bitcoin prices for a few months already (actually since April). It is now more often than not goes against Bitcoin prices. Read when Bitcoin goes up Litecoin goes down and vice versa. Indeed, it could be said that there is strong negative correlation between the prices of these two coins, but this is likely not what you meant to say. I gave you just the most recent example which has revealed this tendency in most glaring way, but it is basically the same at other times as well, though not as pronounced of course

[Turkiwi]

10 billion dollar network emerged out of thin air. Or did it?

Marketcap is a simple multiplication of price of a single coin by total number of coins in economy. It implies that there's a free market where every participant can easily sell or buy given coin.

But is it the case with today's BCH? As of now, almost no exchange actually supports BCH deposits, so the real amount of BCH in circulation is far smaller than 21 million, it's actually equal to amount of BTC held by users on exchanges that listed BCH now. This number is probably some dozens of thousands BCH, at it creates a perfect opportunity for speculation and manipulation.

you have obviously no idea how market cap works, the number of BCH in circulation is irrelevant (and vice versa), as long as the price is high the market cap will be high as well