What is Market cap

[hopper28755]

Im learning day by day about alt coins. But one thing I'm confused about is the market cap. What exactly is the market cap and how is it important to the success of the coin? Does a higher market cap mean a better chance the coins value increases?

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[Hueristic]

A coins market cap is a very poor metric to gauge a coins desirability and profit potential. But as a vast majority of idiots use it as such is has become a self fulfilling prophecy.

As an example of a fake market cap I can create a token and sell that token to myself for 1 billion btc and that token will have a market cap of 1 billion btc.

Many pre-mined coins do this Ripple is one of the bigger ones and most of the top caps are pre-mined with manipulated caps.

[chesegrinder]

market cap is simple refer as Market Capitalization, investors or company investment use it to figure out how much or how large the company's total asset figure.
They are break-down by : Large Cap, Mid cap and Small cap but it id depend on the criteria on how they are rank and by market where they are place.

Larger Cap have about 10 billion market capitalization or more. They are those well-establish company who are long enough in running in the business and one of the major player in the industries.

Simple Formula to determine Market Cap:
Example company have about 1000 shares selling it about $10 per share, Company will have a total of 10,000 Market cap.

1000 share
x 10 dollars
--------------
$10,000 Market Cap

hope it will help you!

[yugyug]

market cap is just the total value of the coin invested in the market, where it is calculated by number of coins multiply by the the coin price. lets say and XYZ coin has a total circulating supply of 1 million then each coin is worth 1K usd, then the market cap is 1 billion USD. The market cap varies from supply and demand, mostly affected by the price of coin.

[HashFace]

High market cap isn't nessasarily a signal that a coin will grow in the future, it's more of an indication that the coin has gained popularity and already had a pretty good investment base.  Some coins have been near the top of market cap, like Doge, but have faded quickly.  Bitcoin has always been #1 and has continued to gain value.  Not much to draw from it, except you'll notice the most talked about coins are almost always near the top. 

[shinratensei_]

Im learning day by day about alt coins. But one thing I'm confused about is the market cap. What exactly is the market cap and how is it important to the success of the coin? Does a higher market cap mean a better chance the coins value increases?

Market cap is the total value of all supply the coin that already distributed into the market or in some words that reflected the total supply of coin that already existed. I can say that just like a valuation of the total supply already traded in the market and held by the developers.

[Yuhee]

Im learning day by day about alt coins. But one thing I'm confused about is the market cap. What exactly is the market cap and how is it important to the success of the coin? Does a higher market cap mean a better chance the coins value increases?

Market cap is the total value of all supply the coin that already distributed into the market or in some words that reflected the total supply of coin that already existed. I can say that just like a valuation of the total supply already traded in the market and held by the developers.

It could also be explained by the graph on each coin. How much it increased every hour and how much was in market and how much is already used. Also most caps has the price in btc as its the founding coin and probably most prices vary depending on how much is its price and in dollars as it is the most popular currency to us.

[veraoktav127]

Im learning day by day about alt coins. But one thing I'm confused about is the market cap. What exactly is the market cap and how is it important to the success of the coin? Does a higher market cap mean a better chance the coins value increases?

Market Cap or Market capitalization refers the total dollar market value of a company's outstanding shares.
it's a lot of information with follow in
http://www.investopedia.com/terms/m/marketcapitalization.asp#ixzz4t5pEjqQo

[coynedterm]

Im learning day by day about alt coins. But one thing I'm confused about is the market cap. What exactly is the market cap and how is it important to the success of the coin? Does a higher market cap mean a better chance the coins value increases?

May be it can be truth for the bulk day trader to get success with high market cap coin but in actual if you want to do trading in altcoins for short and long term then you should be careful that what is the risk to buy high market caped coin .
Suppose ETH is the high demand coin goes up and you just bought now because of the attraction of the coin increasing rate , so you can expect that price will increase but most of the chances happened wrong , price get down easily .
So it is more better to see the coin with low rate which is more popular .
But this is the truth that you can make net profit if you can try day trading with multiple coin in high market cap .
So here market cap is a blow of air in the social media platforms about the publicity of the coin and making trade with big fluctuations and results into profit .

[imjustp]

I've wondered this a lot as well as so many people seem to act as if it is the be all and end defining factor of a coin's potential.

The more I read about crypto and blockchain the more I realise you have to take everything you read online with a pinch of salt unless it comes straight from the horses mouth.

[HardFireMiner]

Market capitalization refers the total dollar market value of a company's outstanding shares. Commonly referred to as "market cap," it is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to using sales or total asset figures.

In crypto, it means NOTHING.

[jyotianand01]

Im learning day by day about alt coins. But one thing I'm confused about is the market cap. What exactly is the market cap and how is it important to the success of the coin? Does a higher market cap mean a better chance the coins value increases?

market Cap means total number of coins multiplied by the price of the coin. There is no connection of success of the coin with the market cap , success of coin depends on many factors like concept, working of team, earning resources, product value and so on.

[heppot]

A coins market cap is a very poor metric to gauge a coins desirability and profit potential. But as a vast majority of idiots use it as such is has become a self fulfilling prophecy.

As an example of a fake market cap I can create a token and sell that token to myself for 1 billion btc and that token will have a market cap of 1 billion btc.

Many pre-mined coins do this Ripple is one of the bigger ones and most of the top caps are pre-mined with manipulated caps.

yeah even market cap could be a fake data. we have to be smart which one is real wich one is fake.
do not be easily affected by seing the market cap has grow quickly.

[valucash]

A coins market cap is a very poor metric to gauge a coins desirability and profit potential. But as a vast majority of idiots use it as such is has become a self fulfilling prophecy.

As an example of a fake market cap I can create a token and sell that token to myself for 1 billion btc and that token will have a market cap of 1 billion btc.

Many pre-mined coins do this Ripple is one of the bigger ones and most of the top caps are pre-mined with manipulated caps.

Problem is: we will have to actually verify that you have 1 billion btc on the blockchain and know that it is all fake, so market cap is not a poor metric to gauge a coins desirability and those who use it are not idiots.

Have a look at coinmarketcap.com

[treather]

Im learning day by day about alt coins. But one thing I'm confused about is the market cap. What exactly is the market cap and how is it important to the success of the coin? Does a higher market cap mean a better chance the coins value increases?

imagine a market place with a baseball hat on, bad joke - The "cap" part of the term is short for capitalization, which is a measure by which we classify a companys size.

[-security-]

In crypto Marketcap is extremly poor indicator, almost useless.
A better way to judge is how many coins at what price sold on average for the past month or so. Also Volume is important.

[AVAMONEY]

market cap will shown how

A coins market cap is a very poor metric to gauge a coins desirability and profit potential. But as a vast majority of idiots use it as such is has become a self fulfilling prophecy.

As an example of a fake market cap I can create a token and sell that token to myself for 1 billion btc and that token will have a market cap of 1 billion btc.

Many pre-mined coins do this Ripple is one of the bigger ones and most of the top caps are pre-mined with manipulated caps.

yeah even market cap could be a fake data. we have to be smart which one is real wich one is fake.
do not be easily affected by seing the market cap has grow quickly.

yes some datas could be manipulates to makes some condition of dumping in 1 or few coins, maybe it is could be ways to promotes  the product it self.

[cryptonianz]

It's actually quite simple.

It's basically the number of coins that exist or will exist.

Many coins are minable meaning that the current market cap is still increasing.

Other coins are pre-mined. All coins are in the market.

Other coins are again pre-mined but are not yet circulating in the market.

You can check more at https://coinmarketcap.com

[Pierre 2]

Market cap is quite easy calculation with coins price multiply number of coin supply. It basically shows how much that coin worths as its wholeself.

[Voice-Of-Reason]

Simple math taking into account the current price vs the available coins/tokens.

Take that value with a grain of salt since that doesn't equate to real money... it is just to give an estimate on the realtime total value of that coin/token.

Sum up all the coins/tokens and you get the full crypto market cap and those crazy billions