Do people understand what market cap is?

[PiousFox]

I been reading some of the threads here and what not and I see people predicating crazy prices in the hundreds for cyrptos (if some of them could even be called that) with billions of coins emitted that run 8 pages deep as if people have no idea how market cap works?

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[Indymoney]

I been reading some of the threads here and what not and I see people predicating crazy prices in the hundreds for cyrptos (if some of them could even be called that) with billions of coins emitted that run 8 pages deep as if people have no idea how market cap works?

If I am not wrong then its very simple if you want to check value of company then we have to check its cap because this will help us about company size and value even its not enough but I can hope now you understand what is market cap.

[PiousFox]

I been reading some of the threads here and what not and I see people predicating crazy prices in the hundreds for cyrptos (if some of them could even be called that) with billions of coins emitted that run 8 pages deep as if people have no idea how market cap works?

If I am not wrong then its very simple if you want to check value of company then we have to check its cap because this will help us about company size and value even its not enough but I can hope now you understand what is market cap.

I mean lets say a coin has emitted 1 billion coins and people say each coin will be worth $500 dollars that gives that coin a $500 billion market cap which makes no sense

[Indymoney]

I been reading some of the threads here and what not and I see people predicating crazy prices in the hundreds for cyrptos (if some of them could even be called that) with billions of coins emitted that run 8 pages deep as if people have no idea how market cap works?

If I am not wrong then its very simple if you want to check value of company then we have to check its cap because this will help us about company size and value even its not enough but I can hope now you understand what is market cap.

I mean lets say a coin has emitted 1 billion coins and people say each coin will be worth $500 dollars that gives that coin a $500 billion market cap which makes no sense

But sadly we have no coin worth of $500 with 1 billion coins in circulation or market hopefully this will makes sense.

[Zeehaxan]

I been reading some of the threads here and what not and I see people predicating crazy prices in the hundreds for cyrptos (if some of them could even be called that) with billions of coins emitted that run 8 pages deep as if people have no idea how market cap works?

You have a point but perhaps people here are predicting big values due to the fact that when crypto market goes parabolic every high price target that seems impossible in normal market conditions become a reality.

[Teraboy]

I been reading some of the threads here and what not and I see people predicating crazy prices in the hundreds for cyrptos (if some of them could even be called that) with billions of coins emitted that run 8 pages deep as if people have no idea how market cap works?

If I am not wrong then its very simple if you want to check value of company then we have to check its cap because this will help us about company size and value even its not enough but I can hope now you understand what is market cap.

I mean lets say a coin has emitted 1 billion coins and people say each coin will be worth $500 dollars that gives that coin a $500 billion market cap which makes no sense

Marketcap means how much the total shares of company worth in the fiat value and it think that makes sense. In fact if the crypto of the company can be considered as the same like the stock.
it sounds ridiculous but that's the fact. People are seeing it as the total valuation of company too.

[bitmover]

Marketcap is a very simple formula

Marketcap = number of coins * price of coins

Instead of coins, you can use "number of stocks" for companies, to know the market value of a company

[dhaldanga]

Marketcap is a very simple formula

Marketcap = number of coins * price of coins

Instead of coins, you can use "number of stocks" for companies, to know the market value of a company

Thank you brother again for presenting many difficult issues in a very easy way.  I'd like to know more about this, please help.

[pedrillo0]

Suppose that Bitcoin is a company, and each unit is a share.

The value of each unit multiplied by the number of total units is the market cap...

[hd49728]

Marketcap is a very simple formula

Marketcap = number of coins * price of coins

Instead of coins, you can use "number of stocks" for companies, to know the market value of a company

Number of coins = Total supply

It is a changeable marketcap as total supply can be changed any time by price change together with higher total supply when more coins are mined and available to be trade on market.

It can be decreased if developers (of centralized coins) burn their coins (premined coins). The events of burning coins can result in price rise or fall and price change can change marketcap too.

[Malam90]

Marketcap is estimated with a project's outstanding coins/tokens and its market price comparing with USD value. It helps to understand how a company is financially strong, company's financial base, their volume, market price. Marketcap increase or decrease depends on the actual market price.

[hd49728]

Marketcap is estimated with a project's outstanding coins/tokens and its market price comparing with USD value.

It is not a comparison but is an estimation on value of a company that is decided, valued by investors on the market. In my opinion, it is a misleading term to assess value of a company.

It helps to understand how a company is financially strong, company's financial base, their volume, market price. Marketcap increase or decrease depends on the actual market price.

It does not make sense if you use marketcap to consider a health of one project especially in crypto. The price can be risen 50% within 24 hours by news and you can not blindly say this company is being stronger 50% than it was yesterday. It is not like that.

You can use marketcap of companies you are interested in but you must combine it with other contributors and be cautious if you only use marketcap to value company strength and future growth.

[DoubleAweSeven]

I been reading some of the threads here and what not and I see people predicating crazy prices in the hundreds for cyrptos (if some of them could even be called that) with billions of coins emitted that run 8 pages deep as if people have no idea how market cap works?

You really can't blame them. They're just trying to hype their project to an absurd number so that more investors try to invest in them. Just ignore them since there's not one rational person would listen to them, at least more investors don't.

[CryptoSable]

Market cap only works for mainstream coins. For new projects, I don't think the numbers are trustworthy

[Psynthax]

Well market cap in crypto is as simple as mutiplying total supply of a coin with its price. That's without taking into account all the lost coins that was wrongfully sent to address without owners and many more.

market cap is probably not accurate way to measure how big a coin market is but atleast that's what we got right now.

[BayAngelo]

Actually the current trends in the crypto markets is unbelievable and overwhelming that project developers are money driven and no longer product driven. people cares so much about the money they will make Not the service the token will offer. it is hard this days to pick a project that offers a service for a long time. majority are chasing money.

[tvplus006]

If I am not wrong then its very simple if you want to check value of company then we have to check its cap because this will help us about company size and value even its not enough but I can hope now you understand what is market cap.

I mean lets say a coin has emitted 1 billion coins and people say each coin will be worth $500 dollars that gives that coin a $500 billion market cap which makes no sense

To talk about the total capitalization, it will not be enough to say that the coin is worth $500. It is necessary that in addition to offering a coin at this price, there is also a demand for it. Otherwise, there will be a situation where you set the price of a coin at $ 500, but no one is buying it at that price.

[Galley]

You can set any price for coins, but you must adhere to elementary logic. Nobody wants to buy it without first evaluating its possible value in the future. It is impossible to embrace the immensity. You can also set a price on the Moon, you can also buy it if you have enough money, but no one can use it, and then the money will be thrown into the wind.

[nemey]

In this forum and in crypto, everyone has the right to have the hopes and targets they want. After all, this crypto is also a very uncertain investment so that there are many, even unnatural, possibilities to occur in crypto. I myself am not surprised by this. If it is for market capitalization, some experts will understand this. And it is true that their guess or target will of course also be more structured. The likelihood of this happening will also be greater.

[awakpane]

Market cap is a good metric for guessing how valuable a cryptocurrency is, there are a few other factors to take into account. just knowing the market cap, you cannot make an accurate assessment of the value of the coin. you don't know how many of those coins are locked in an inactive wallet and what the true speed of this token is. Without all of these metrics, the market cap is not really the best method for assessing the true value of cryptocurrencies.