What is a Van Gogh painting worth today?
it is all about what we think it is worth and of supply and demand.
someone creates a coin. They create x number as supply (totally made up). And a starting price.
This is why it does not matter much how big the supply is. Ripple and others can go higher than 100$. There is absolutely no real relation between the world money and market cap.
Take all art in the world and tell me its market cap. There is no limit, limit is what people think it is worth. And since cryptocurrencies which has no underlying asset etc, it could be compared to art.
Some coin has a real usage, some has none but right now it is still only about what we think it is worth.
Topic: Market cap and coins like ripple (Read 105 times)
I can agree everything written on this post. Total supply is just a number that directs coins' price. If hype is good enough it means nothing. Basically nothing. Price will keep skyrocketing. Ripple is nice example.
Just som general conclusions:
High supply and Market cap does not make it impossible to reach a high value.
Market cap is only a teoretical figure if all circulating supply would be sold instant at the same time (which is not possible, because the second all sell, price and market cap declines). Meaning the market cap is just a hypotetichal number.
If people buy the supply the price will be what the seller decides and the market cap just follows. This is why Ripple can reach 100$. Yes the more supply the slower.
So to make it more clear, if i bought 1000xrp at 1$ and now it is 3$ that does not mean i have invested 3000$. It means someone else could be willing to give me the 3000$ if i sell. But the moment i sell the price is not longer 3$ (translate to big whales that is).
So when you compare and say that the world money is not enough for 100$ xrp you are including all xrp bought before today as if they are bought for current price.
High supply and Market cap does not make it impossible to reach a high value.
Market cap is only a teoretical figure if all circulating supply would be sold instant at the same time (which is not possible, because the second all sell, price and market cap declines). Meaning the market cap is just a hypotetichal number.
If people buy the supply the price will be what the seller decides and the market cap just follows. This is why Ripple can reach 100$. Yes the more supply the slower.
So to make it more clear, if i bought 1000xrp at 1$ and now it is 3$ that does not mean i have invested 3000$. It means someone else could be willing to give me the 3000$ if i sell. But the moment i sell the price is not longer 3$ (translate to big whales that is).
So when you compare and say that the world money is not enough for 100$ xrp you are including all xrp bought before today as if they are bought for current price.
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