Topic: BCH launch shows us how irrelevant marketcap can be - page 2. (Read 926 times)
But as of right now it has fallen from 626$ to 225$ per Bitcoin Cash. And with the price of Bitcoin crossing the 3100$ per Bitcoin it has prove to us that users have use the opportunity to sell Bitcoin Cash in order to buy Bitcoin in return. Well we all support the original Bitcoin anyway and it is a win-win for us especially those who took advantage of their Bitcoin Cash. I hope that Bitcoin will stay above 3000$ by the end of August to establish a nice support in the chart.
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.
Indeed. Market cap is probably not a very good indicator of how healthy a coin is economically at all. Bitcoin vs gold market cap wise isn't even close, but in my opinion bitcoin is much more liquid as it is able to be traded by anyone, anywhere, without volume or quantity restrictions or any sort of fees added on to the trading activity.
Bitcoin cash is probably one of the best examples of why market capitalization is not a good sign of liquidity or healthiness of the coin, because it had really long block times due to high difficulty for miners. That meant that people weren't able to dump their coin when they wanted to. THis plus the fact that many exchanges didn't have deposits open for BCC meant an artifcially inflated price level.
If someone just dumped $1 million worth of BCC i would expect price to drop by $50...
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.
oh, you are correct. yes, a 10b network did appear overnight. and for about 48 hours, it was legit.
and this is the problem with bitcoin.
we dont really have any real basis to price this shit off of. the price is borne on pure speculation; bitcoin prices does not reflect utility or production costs. coupled with the fact that most folks are play traders with no formal education, you get a dutch tulip of a situation
And as I have said earlier, this is a perfect storm. The market has been in disarray since before the fork, and everyone got these coins. given the uncertainty of bcc, even at this point, there was no possible bull market with all that selling pressure. the situation we saw on exchanges is similar to what we see on hitbtc when they trade an iou token; the lack of liquidity causes pricing anomalies that correct as soon as the liquidity crunch is solved.
apparently, we are quite liquid at this point
positively drowning if you ask me.
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.
Correct, marketcap has no significant value so it doesn't count as factors how strong a coin is. I initially thought that this coins will be manipulated by far by very rich individual and big entities behind it. I have suspected this will be done to keep the hype around it so that people will become interested and get it then suddenly they will just dump it.
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.
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.
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.
honestly BCH is hard to predict and kinda challenging. its stresses me but in a happy way to read its movement ,i can really practice my trading skills
now bch rapidly flactuate i predict its going down to .07 but im also putting some buy orders on .05
i noticed that the chart go downtrend as people transfer their bch as if it is controlled and avoiding pump and dump...
thats is why many traders bashed this coin but i have a good feeling that it will moon with in this year.
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.
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