Original topic:Bitcoin vs altcoin~projected marketcap
Author:1miau
Base on how we they think say this thing go be, na so e they very important make we know how to review the market capitalizations wey they cryptocurrency. Because the wey the market capitalization go only incompletely comeback if a cryptocurrency they fit as a better store wey go get value for long term.
Current market capitalisation they very betrayal, especially if na shitcoin- make we be careful.
Current market capitalisation vs. projected market capitalisation
If we they consider market capitalisation, make different they between current market capitalisation and project market capitalisation.
Currently market capitalization: they only put coins wey don entered place wey coins they supply. All coins they increase by coins wey they add we no they consider them for here.
E very important make we know.
Circulating supply:
current circulating supply (Also they include e no they easy reach people no fit get access to those coins, such as coins wey there private key don lost)
Total supply:
Current numbers of coins wey they exist, Including coins that don already exist but the people wey develop that coins block am,(e.g XRP) or coins wey they never mine. Coins wey don burn no go they part of them, because them no they exist again.
Max(imum) supply:
The final (caped) maximum number of coins wey don exist. Coins they wey be say their total supply and maximum supply na the same.
Infinite supply:
Some coins they wey nobody they in charge of their supply at all and more coins go they come always like that.
For that kind of coins, make we they look up to them well well, make we know how many of them go they flow, for some time. Because that type of coins they very risk of massive inflation( their price they later go very high)
Make we put in our mind that when a circulating market capitalization come, because e they very misleading, base on say e go con represent another temporary coins wey go con they in circulation and e fit be say another new coins go come in to existence later.
E fit be more reliable to think about to adjusted market capitalizationwhere we go con they always choose a time in the future and look for what a specified circulating supply and the resulting market capitalization go look like.
= > adjusted market capitalization= time wey we choose in the future (for example 2050) and the we go compare how the projected circulating and the resulting market capitalization go look like between or two or more coins.
For example.
For example, e they clear say bitcoin go roughly enter 20,980,000 Bitcoin in circulation in 2050, wey be say at current e they $20,000, the result wey we wan modify markets capitalization of approximately $420,000,000,000.Compare to the condition wey the market of capitalization they, of approximately 382,800,000,000 USD (at 19,140,000 BTC), e go fit be a different of just less than %10 of how the current market be. And if the number they go close to 0 e go they make more sense make and wetin we they store go they get value. Almost other one wey they do competition with bitcoin get important go con get important number wey high for here.
Example Polkadot:
Polkadot don consider coin wet get high inflation base on nPos (wey be say almost dPos). And base on how the current source be, Polkadot they rise reach around %10 every year. E depend on money wey Polkadot staked. But normally e be around %10 every year. In addition, if inflation too much for Polkadot e they circulate back to people wey found the Polkadot, even if they staked different Polkadot. And the polkadot wey they don seized. Which they fit use am or burned am by the people wey developed Polkadot.
And again, na only few sources they available about Polkadot inflation. Since the time wey they make statement for their main source con reduce for the first year or e be like say Polkadot completely delete many sources wey they available. Like this one https://w3f-research.readthedocs.io/en/latest/polkadot/economics/1-token-economics.html#inflation-model e no they available again.
And e no suppose be like that
Some of their information just they their dependent sites wey they analyze Polkadot documents, the time wey they still they up, like this one https://www.coinbase.com/de/cloud/discover/solutions/polkadot-token-economics.
Now like this Polkadot get a circulating supply wey be approximately 1,150,000,000 Polkadot for a price of $7.36 for any polkadot, wey result in a current market capitalization for approximately $8,464,000,000.
Make we assume say 10% annual inflation for Polkadot, the amount wey Polkadot go they go increase toabout 16,500,000,000 Polkadotby 2050, and e go be 12X if you compare am to price wey the coin they now.
For current price wey e they $7.36 per Polkadot, so e go be an adjusted market capitalization approximately $120,000,000,000, and e go they disturb some people 1400 percentpass today’s market capitalization.
Make I remind una: bitcoin just they under 10% for here.
Anybody wey know how the market they go, fit only conclude say the price for Polkadot go fit go down well well by 2050.
Look market capitalisation wey they the same in 2022 vs the one wey go be in 2050, each Polkadot go reduce from $7.36 today to $0.51 (!) in 2050.
Las las: Polkadot na shitcoin wey they increase well well in the place where plenty numbers of Polkadot they come into circulation in the future we go reach the staker.
The price per Polkadot coin go con drop well well, if we they look at Polkadot adjusted market capitalization ( for example 2050)
Summary
Las las we fit talk say for solid coins, like bitcoin, current market capitalization and market wey they adjust market capitalization they near well well. For shitcoins wey they price they increase well well, current market capitalization and adjusted market capitalization no they near.
Predictability of projected market capitalisations
Predictability wey they adjusted market capitalization means say if we fit do am to find out if the amount of a certain cryptocurrency wey they circulation go con be known by people in the future. We go need the number of the coins so that e go fit give us how we go take classify the market capitalization in the future.
If we no go fit predict the number of coins wey go they in circulation in cryptocurrency market even in 20 years, then we go talk say that cryptocurrency nah dangerous coin or we go talk say we no fit talk about am, and na him be the main thing wey go make us avoid cryptocurrency. Because people wey develop altcoin don already know why them no they allowed people no that kind important information.
If we no they fit talk about the market capitalization, then that mean say we just they buy and keep something wey we know no about be that.
Lesson wey this topic they teach: we wan analyze the long term assessment for cryptocurrencies make we know their value for storing them, by evaluating their market capitalization- and if the altcoin go fit reach or compare to match the leader wey they market and na him be bitcoin.
Topic: Bitcoin vs altcoins-projected marketcap. (Read 125 times)
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