That is true but that is not. Term "inflow" cannot be used when one currency is used to buy another currency. Also we cannot say that BTC is moving inside of currency band of a sort. "Inflow" can be suitable for other non-currency projects although. I would prefer to use term "public expectations about future" + market speculations which are like magnifying glass + hidden factors (like in the case of Ripple you never know what owners will decide).
So at any time on coinmarket we can see picture of "temporary social agreement" about the capitalization.
Topic: Market Cap Vs Inflow. (Read 94 times)
I 'borrowed' this;
So I thought I should address a common misconception that a lot of people have in crypto.
It looks like most people think if the crypto market cap is $600 billion, it means that the money invested into the market currently is $600 billion. That's absolutely not true!
The money actually invested into a market is called inflow. This is the actual money that has been invested into a market. Whereas, the market cap is the current circulating supply of crypto assets multiplied by the current price of those assets.
Here's a simple example to explain this to you.
Suppose someone invested $10,000 into Icon (ICX) at 10 cents and the current price of Icon is at $10, it would mean that the value of that $10k has increased to $1m. This $1m would represent the current "market cap" whereas the actual "inflow" of capital was only $10k.
Understanding the difference between these 2 figures is crucial because it can help you better understand the impact of certain factors
So I thought I should address a common misconception that a lot of people have in crypto.
It looks like most people think if the crypto market cap is $600 billion, it means that the money invested into the market currently is $600 billion. That's absolutely not true!
The money actually invested into a market is called inflow. This is the actual money that has been invested into a market. Whereas, the market cap is the current circulating supply of crypto assets multiplied by the current price of those assets.
Here's a simple example to explain this to you.
Suppose someone invested $10,000 into Icon (ICX) at 10 cents and the current price of Icon is at $10, it would mean that the value of that $10k has increased to $1m. This $1m would represent the current "market cap" whereas the actual "inflow" of capital was only $10k.
Understanding the difference between these 2 figures is crucial because it can help you better understand the impact of certain factors
Jump to: