Topic: Total Marketcap - are cryptocurrencies realy worth that much? (Read 172 times)

Funny and strange thing was that market hit ATH at 800B when bitcoin was in bear market since month.

Not only that, we should include that most altcoin in the market is running of with Etherium platform and only few percentage do have its independent platform where i dont even see the value with those coins being dependent mostly on it. Smart contract is good and innovative but its being used up too much.
We cant really stop if total marketcap will go up that high i didnt even expect it would reach out hundreds of billions but well this is the trend now it even hits up on ATH on 800B.

Yes marketcap is like you said Current price x supply only. Like on stocks. But there is something that is not like on stock and im talking about that. Im talking about first factor of this mathematical formula. Current price is most often made by other cryptocurrencies (mostly bitcoin) instead of $. Made from the begging. From ICO (which suports btc eth) till now (most of volume made by btc-eth/alts).

You have bitcoin pumped by $ to 110 bil$ (not pumped by 110bil$ but pumped to 110bil$ with unknown amount of $) and other currencies pumped mostly by bitcoin to another 190bil.  instead of 300bil $ market pumped by dolars. That gives us circle of pumping. I mean that if only hypothetical you will close every possible way to invest $ into market and pull $ from market marketcap will continue to grow becouse new coins will be bought from old coins. And its price will be calculated through old coins. If you will do that on stock that not a single price would change and marketap will stop too.

Im sorry if i wasnt clear enought in first post.

Thats why total marketcpa is decrising that fast. Its not only caused by speculation but also because every altcoins price is based on bitcoin from begining till now

market cap does not show "value" although people mistakenly use it as such.

for bitcoin it may be considered a good factor to measure and compare only because bitcoin is transparent and both its supply and price are real but it is far from real when it comes to altcoins. for example ETH market cap is about 70% fake because it has nearly that much premined coins which are not real supply.

Market cap = Current price x supply... it is a common misconception that the market cap is representative of dollars invested.. its highly under this amount.. for example Bitfinex has been dumping 2-3k bitcoins causing these bart candles patterns we've been seeing over the last couple of months... 2000 BTC is only curently worth 14 million, but if you sell these coins at market (along with arbitrage bots picking up on this data and correcting on other exchanges.. this one 14 million dollar sell can wipe 2-5 billion dollars off of the market cap.  A lot of people don't understand this correlation.

I have few thoughts that i would like to talk with you guys.

Today total market cap is 300 bil $ and is very often compared to American stock market worth 30 trylion with various conclusions. But is 300 bil a correct number to compare with those 30 tril? All stock was bought and is being traded through USD. How is it with cryptocurrencies? Let's find out.

Bitcoin was first currency and was bought by dollars and is pumping by dollars till now. We can for sure say that 115bil from bitcoin can be put in total to those 300 bil total marketcap. But what about other currencies?

Almost every ICO supports bitcoin and ether (and majority of new coins was bought by those) sometimes litecoin, monero and others. But even ether litecoin monero was bought mostly by BTC during their ICO. That gives us strange circle of pumping. They are also traded and pumped to current price mostly by bitcoin (alt/btc pair).

Why is that important?

1- When you sell for example google shares for 10 mil$ you decrease marketcap evaluated in $ pulling out $ from market - when you are selling EOS to BTC you are decreasing marketcap evaluated in $ without pulling out $. When you then sell bitcoin to $ to pull them out of market you decrease marketcap again !
2- imagine that scenario. All bitcoin coins have marketcap of 10 bil $. Than there is ETH ico and all coins was bought for 5 bil $ in bitcoin currency. Than we have EOS ico and all coins was bought for 3 bil $ in ETH. We have marketcap equal to 18 bil but only 10 bil came from $ and 8 bil came from strange circle of pumping (total markecap pumping). In real its not that black and white but i just wrote that overpainted picture to better explain my thoughts. Now lets w8 for few years to pump each other to current price.

Real total marketcap evaluated in $ must be somewhere close to bitcoin marketcap. (some of the coins was bought by $ and is being traded by $ in some volume percentage). Maybe around 150-200 bil $. By real i mean markecap made by putting $ into market.

What you guys think about it?