High supply vs low supply ?

[simplyred]

Can you explain why coins with low circulating supply is looking any better than a coin with high circulating supply ?

It's all about the market cap, right ?

If you put 1000 dollars in a coin with a low supply it will double your investment if the marketcap doubles and it is the same with the high supply coins. So basically it does not matter.

Can anyone explayn why everyone is allways hyping coins with low supply like you can gain more money with it ?

[staywoke081]

I can certainly try. Marketcap that hinges on supply and then price. Well the $1000 thing isnt true neither because most altcoins are traded against BTC. So it depends on what

BTC has done in that time relatively then we can provide an answer. If you dont know what satoshis are then I would suggest googling that and learning upon them. That will

help your knowledge in understanding. The best thing I can think of is that when supply is low, the coin or token is scarce. And when a coin or token is scarce that means in

general you should be able to get a higher price because of that scarcity. If you look at the CMC top 25 , only 5 coins have more than a billion tokens. So I think we can derive

from all of this, less supply is generally better.

[simplyred]

Thanks staywoke.

I am still trying to understand.

I am thinking deeply about this right now, why low supply is better.


ok.

coin A
i buy a coin that has 10.000.000 marketcap and supply of 10.000.000  price is 1 dollar.

Coin B
i buy a coin that has 10.000.000 marketcap and supply of 1.000.000 price is 10 dollars

if marketcap of coin A goes to 20.000.000 and marketcap of coin B goes to 20.000.000, there is x2 gain on coin A and x2 gain on coin B.

So i am not understanding this.

But thanks for traying.

[TryNinja]

coin A
i buy a coin that has 10.000.000 marketcap and supply of 10.000.000  price is 1 dollar.

Coin B
i buy a coin that has 10.000.000 marketcap and supply of 1.000.000 price is 10 dollars

if marketcap of coin A goes to 20.000.000 and marketcap of coin B goes to 20.000.000, there is x2 gain on coin A and x2 gain on coin B.

What are you not understanding?

The marketcap is equal to the price per coin X the number of coins in existence. If there are only 10 lollipops in the world and each of them is worth $10, the total marketcap of those lollipops is $100;

As in writing this, there are 16,566,050 BTC in existence. Each BTC is worth $3248; The market cap of Bitcoin is $53,813,653,802 (16,566,050 x $3248); If the price of the bitcoin doubles right now, the total marketcap will double aswell. It's basic math.

A low supply is better because if there is more demand and less supply, there are more people buying Bitcoin and less people selling. This means that people will pay more for each coin, since its amount is limited = higher price.

[simplyred]

Good answer TryNinja, thanks.

[Twinkledoe]

What are you not understanding?

The marketcap is equal to the price per coin X the number of coins in existence. If there are only 10 lollipops in the world and each of them is worth $10, the total marketcap of those lollipops is $100;

As in writing this, there are 16,566,050 BTC in existence. Each BTC is worth $3248; The market cap of Bitcoin is $53,813,653,802 (16,566,050 x $3248); If the price of the bitcoin doubles right now, the total marketcap will double aswell. It's basic math.

A low supply is better because if there is more demand and less supply, there are more people buying Bitcoin and less people selling. This means that people will pay more for each coin, since its amount is limited = higher price.

Very simple explanation. Thanks.

[m!llar]

can you explain why coins with low circulating supply is looking any better than a coin with high circulating supply ?

it is better to say other altcoin is best for safe because it have fixed rang of price but coins like bitcoin is so risky you see  it lose 1000$ at only one night

[Hypercube]

A low supply is better because if there is more demand and less supply, there are more people buying Bitcoin and less people selling. This means that people will pay more for each coin, since its amount is limited = higher price.

A low supply does not necessarily means that there will be demand. There is 372 YoshiCoin, do you still think it's better than BTC because it has 20999628 more max supply and that everyone is killing to get one? But in that case why would anyone trade it for 0.3 eth?

Can you explain why coins with low circulating supply is looking any better than a coin with high circulating supply ?

It's all about the market cap, right ?

If you put 1000 dollars in a coin with a low supply it will double your investment if the marketcap doubles and it is the same with the high supply coins. So basically it does not matter.

Can anyone explayn why everyone is allways hyping coins with low supply like you can gain more money with it ?

Like you said it's all about market cap and you already got it. The supply doesn't matter appart from a psychological point of view.

[Velkro]

coin A
i buy a coin that has 10.000.000 marketcap and supply of 10.000.000  price is 1 dollar.

Coin B
i buy a coin that has 10.000.000 marketcap and supply of 1.000.000 price is 10 dollars

if marketcap of coin A goes to 20.000.000 and marketcap of coin B goes to 20.000.000, there is x2 gain on coin A and x2 gain on coin B.

Its only theory, because any time any day, developer of this coin can say one thing, that will drive price x2 or /2.
Its not easy like that, its so much more to it.

[vozphongtom]

Can you explain why coins with low circulating supply is looking any better than a coin with high circulating supply ?

It's all about the market cap, right ?

If you put 1000 dollars in a coin with a low supply it will double your investment if the marketcap doubles and it is the same with the high supply coins. So basically it does not matter.

Can anyone explayn why everyone is allways hyping coins with low supply like you can gain more money with it ?

i think high supply or low supply not important because when i invest my money , i will research project and see future of  project.
with a low supply or high supply , i will choice low supply because  a coin have high price than high supply
i think every investor will like me .

[Hypercube]

Its only theory, because any time any day, developer of this coin can say one thing, that will drive price x2 or /2.
Its not easy like that, its so much more to it.

OP is only asking if there is an intrinsic value given to a coin comparing it to one with a higher supply and equivalent market cap. We all know there is multitude of factors driving the price.

[happyme1818]

Can you explain why coins with low circulating supply is looking any better than a coin with high circulating supply ?

It's all about the market cap, right ?

If you put 1000 dollars in a coin with a low supply it will double your investment if the marketcap doubles and it is the same with the high supply coins. So basically it does not matter.

Can anyone explayn why everyone is allways hyping coins with low supply like you can gain more money with it ?

All you have to do is to apply the law of supply and demand. Which means the lower the supply with demand,  the higher the value. More supply without a demand means inflation.

[darkangel11]

Its only theory, because any time any day, developer of this coin can say one thing, that will drive price x2 or /2.
Its not easy like that, its so much more to it.

OP is only asking if there is an intrinsic value given to a coin comparing it to one with a higher supply and equivalent market cap. We all know there is multitude of factors driving the price.

Exactly. The number of coins in circulation can, but don't have to influence the price. That is unless you go into extremes and start making the supply unlimited or something, then I'd expect the coin to plummet.
It really doesn't matter if you buy 100 coins for $1 each or 1 coin for $100. You can find coins of both types that have gained popularity among investors.

[pschler]

Can you explain why coins with low circulating supply is looking any better than a coin with high circulating supply ?

It's all about the market cap, right ?

If you put 1000 dollars in a coin with a low supply it will double your investment if the marketcap doubles and it is the same with the high supply coins. So basically it does not matter.

Can anyone explayn why everyone is allways hyping coins with low supply like you can gain more money with it ?

It's all about market cap. Anyone who tells you otherwise is wrong.

[acmagbanua21]

it depends on the coin if the support of the coin is good then no problem with high or low supply