Do people understand what market cap is?

[bekti3]

So here I will say that I do not really understand what is meant by market capitalist, in a simple and comprehensive manner that can be understood by the general public. for that can you give me a simple example of how the market capitalist system works?

I am not asking for a definition, but rather the market capitalist system works simply.

[masterrex]

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?

Mate, I understand what you mean, But dont take them seriously they are just speculating about the price of that particular coin/token, But sometimes some of them are not considering things like what you said about the total emission, which is involving the Market Capitalization which is too good to be true or unrealistic. for example, like XRP which has a total supply of almost 100Billion coins and already has 38.739Billion in circulation, someone predicts that the price of XRP could reach $500 which is very impossible, unrealistic and it wouldn't happen even in the future. for me, it's only speculation so let's leave it that way.  

[imstillthebest]

they dont need bother checking the market if they are only going to predict coins that are btc and eth . both of this coins are the peoples choice when it comes to insane and crazy predictions .
 a few threads that have predictions for undervalued coins but price prediction are not that high , thats not a big deal and its hard to tell if they check that coins market cap or not .
if there are terms that people dont understand we have a google to solve that but theres also people that choose to be lazy

[Fundamentals Of]

A lot are just simply shilling the shitcoins which they own. Many of them are not just shilling with bases, they tend to exaggerate everything as if all of the users here are kind of stupid like them to just accept their crazy predictions and start to buy or hodl.

It is true that many are not even aware how much in total supply their shitcoins are and why their price predictions are crazy impossible because if they happen their shitcoin's market cap will even exceed that of Bitcoin's.

[yazher]

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

This is a simple formula and I don't know why most people don't understand it. The market cap will determine the value of coins and their popularity. When its market became less valuable and the demands become low, then it's volume will become useless.

[mikelpol]

Some people think that the same xrp may cost $ 10 per coin, but at the moment this is simply impossible, since in this case its capitalization will be greater than that of Bitcoin. It is very important to understand how capitalization works.

[iv4n]

I am sure many people don't understand basic stuff! Then add a lot of people who know basics and little over that and the ones that left are experts in their field, and you don't have many of them!
About crypto marketcap and how it's being calculated and manipulated you can read more in "old threads". Search for them here on forum and you will read what some trusted and well-educated members of this forum have to say about it!
The most important part don't fully trust market caps, and sites that offer info about that! Use it only for basic informational purposes!

[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?

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.

totally agree, if you check this thread omg its crazy how many people trying to sell insane numbers

[MCobian]

The term market cap is widely used in the investment world, because market cap describes the value of a project or company.
The market cap in the cryptocurrency world shows the overall price of a project. How to calculate the market cap by multiplying
the number of coins in circulation by the price of coins in the market. So the greater the market cap price, the more valuable
the coin. Of course, the biggest market cap in the cryptocurrency world today is Bitcoin.

[aryana42]

totally agree, if you check this thread omg its crazy how many people trying to sell insane numbers

What crazy number do you mean by that? because what I know the people who are in crypto are smart and sane people, so obviously they are all not crazy when doing their jobs here.

[sana54210]

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?

Unfortunately man don't understand what it should mean, or at least what it should mean in trading world. I have seen plenty of people talk about "this coin is only 1 cent, if it goes to only 2 cents we will double our money!!" and don't really understand how that is nearly impossible if the people who are involved do not buy it the same way it could make double for any other coin.

The logic of a coin with marketcap of 100 million dollars and a price of 10 cents versus a coin that has 200 million dollars marketcap and 1 cents means that the one with 10 cents can go to 20 cents easier than the other one going from 1 cent to 2 cents. However it is very difficult to explain this to people, they still look at the price more than they look at the market cap to this day.

[crwth]

In essence, you could really achieve some portion of it with whatever you like, as long as there are buyers and market makers with that kind of ability then I think it's okay. Maybe you are talking about super absurd prices that have exceeded the amount of money in the whole world. Is that what you mean? I'm making sure that you understand as well that there's a difference between the money circulating and the money that is invested in the whole world. A lot of money now is invested in either derivatives, futures, stocks, etc. and some of it exceeds the circulating money in terms of market caps.

[gwdf1]

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?

Cryptocurrency is self – sufficient-it is not linked to any material values or currencies whose value is not formed on the basis of other indicators.
The exchange rate and capitalization of cryptocurrencies are related, but different in meaning. The exchange rate affects the capitalization – the higher the value of the cryptocurrency, the greater its market capitalization will be.

[NextDoor125]

I appreciate with you, A investor need a minimum knowledge about the coin market circle. That means the coinmarketcap how with work coins or tokens. I saw many investors to predict prices of some tokens or coins specially before listing is very much unrealistic.

[sangkler11]

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?

What is the meaning of market cap in cryptocurrency? In cryptocurrency, the market cap is the total number of coins that are on the market multiplied by the coins current price, and in cryptocurrency there is a max supply and circulating supply.
with this way you can calculate the market cap of a coin or token.

[FlagstaffRevel235]

The coin Market cap is a metric for having an idea about the values of a cryptocurrency but also just by knowing the market cap, you never really can make an accurate assessment of the value of the coin. There are a few other facts too. We can say the number of total units unit multiplied by the value of each unit is the market cap.

[so98nn]

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

You will need to calculate per coin price by assuming the complete market cap is equal to number of coins multiplied current stable price. Or vice versa is also true. I am not sure but in crypto also there has to be basic valuation of the whole project where the asset value is decided based on expenses to run the project.

For example, there has to be reserve fund which supports the minimum price of the project. So market cap will constitute of actual cost of coin and reserve funds for the same.

[LostConfidence243]

The term "market-cap" is widely used in the investment world because market cap determines the value of a project or organization. The market-cap in the cryptocurrency world shows the overall price of a project. How to calculate the market cap. Multiply the coin value by the number of coins in the market so the higher the market cap price, the more valuable the coin. Of course, the biggest market cap in the cryptocurrency world today is Bitcoin.

[atjiat]

I believe that for a user of a cryptocurrency, it is not the very fact of the market capitalization of a cryptocurrency that is very important, but we will kill its changes. it is thanks to the indicator of changes in capitalization that it is possible to determine the percentage of growth or decline in the investment attractiveness of a cryptocurrency. But nevertheless, a very important addition to the assessment of coins is the trading volumes, and only in the aggregate of these parameters a trader or investor will receive an overall picture of what is happening in the market.

[Jackl87]

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?

Most of the time if you read stuff like "this coin will easily be at 100$ in a month" when the coin is at 0,1 or so at the moment than you can be 99% sure that this post was made by a bagholder of that coin who wants people to FOMO into his project.
If you are a veteran of this forum you can just laugh about stuff like that, but for every newbie i really hope they don't fall for stuff like that. And yeah the most funny ones are those that predict prices for a unknown project that would result in a higher market cap than ETH or even BTC.