Topic: What is a Market Cap? (Read 304 times)
Thank you for the article. It is really useful for a newbie like me. I learned a lot from your article. Market capitalization is a measure of the size of an enterprise, which is the total market value of an enterprise, determined by the amount of money spent to buy the entire business under current conditions.
In short, it refers to the total dollar market value of a company’s outstanding shares. Commonly referred to as “market cap,” it is calculated by multiplying a company’s shares outstanding by the current market price of one share.
this is the important keyword! which means you shouldn't even be using market capitalization for a cryptocurrency specially when it comes to altcoins that have unaccounted for supplies. for instance all those premined altcoins that have billions of coins out.
that is why market cap is misleading and even useless in most cases when it comes to cryptocurrencies. in a company your shares mean something and you can't create fake ones not in circulation but in cryptocurrency world you can have literary any number of coins as your supply that you want. and market cap of a coin is simply supply * price.
in a sense you are right but for the wrong reasons.
(1) this could have only been true if all the altcoins had the same amount of supply OR if their supplies were real and accounted for. but when in reality any altcoin/token can create billions of coins out of thin air and only a small number of coins be in circulation for real then the result of that formula becomes fake.
(2) in a sense this is right because these days people think having a high market cap means it is a good coin so they invest in it. that doesn't make them "top mover" though. in altcoin market it actually is the opposite. meaning the small coins move bigger not the big coins. for example a coin worth 0.1 can not be pumped 10x to 1BTC but a coin worth 0.00000100BTC can easily be pumped 10x to 0.00001000BTC
(3) i disagree with this. market cap should be the last thing you look at, if at all. you need to see what you are buying, look at the volume, the price, most important of all the charts. and as i said above there are cons getting pumped 10x easily while you are busying yourself with big bloated market caps.
Like this articles, MarketCap its a good valuating of cryptocurrency, The price very accurate at the moment in Exchange, I like Token or coin to be listed in Market Cap.
Goid article. In summary market cap is the total dollar valuation of total supply of the coin. It increases with the rate.
how to put coin into market cap? sorry i'm beginner
Good article!
In short, it refers to the total dollar market value of a company’s outstanding shares. Commonly referred to as “market cap,” it is calculated by multiplying a company’s shares outstanding by the current market price of one share.
this is the important keyword! which means you shouldn't even be using market capitalization for a cryptocurrency specially when it comes to altcoins that have unaccounted for supplies. for instance all those premined altcoins that have billions of coins out.
that is why market cap is misleading and even useless in most cases when it comes to cryptocurrencies. in a company your shares mean something and you can't create fake ones not in circulation but in cryptocurrency world you can have literary any number of coins as your supply that you want. and market cap of a coin is simply supply * price.
So what does market cap tell you? First, it gives you a starting point for evaluation. When you're looking at a stock, it should always be in a particular context. For example, how does the company compare to others of a similar size in the same industry? The market generally classifies stocks into three categories:
It’s just a number that we display to show the “value” of a cryptocurrency. It’s the total cost of all outstanding coins at their current price.
Greetings to all.
Market Capitalization is one way to rank the relative size of a cryptocurrency. It's calculated by multiplying the Price by the Circulating Supply.
Market Cap = Price X Circulating Supply.
The maths is confusing but in layman terms it is
Market Cap is the amount of Fiat money (USD, GBP etc) currently invested into a Cryptocurrency.
Market Cap = Price X Circulating Supply.
The maths is confusing but in layman terms it is
Market Cap is the amount of Fiat money (USD, GBP etc) currently invested into a Cryptocurrency.
Did you forget the []? The first part of your post is completely copy-pasted from https://coinmarketcap.com/faq/
Quote from: https://coinmarketcap.com/faq/
Market Capitalization is one way to rank the relative size of a cryptocurrency. It's calculated by multiplying the Price by the Circulating Supply.
Market Cap = Price X Circulating Supply.
Market Cap = Price X Circulating Supply.
And the second part of your post is completely wrong. Marketcap is really a bad indicator as to how much has been invested in a coin for all the reasons mentioned above in this thread which you clearly did not read... :/
IIRC, there was an article based on/from analytics of JP morgan/GM in which it was calculated that the actual cash put in bitcoin was less than 5 billion. Too bad i don't have a link to the article anymore...
Edit; this might be it https://www.zerohedge.com/news/2017-12-02/jpmorgan-has-some-bad-news-bitcoin-bears
Market Capitalization is one way to rank the relative size of a cryptocurrency. It's calculated by multiplying the Price by the Circulating Supply.
Market Cap = Price X Circulating Supply.
The maths is confusing but in layman terms it is
Market Cap is the amount of Fiat money (USD, GBP etc) currently invested into a Cryptocurrency.
Market Cap = Price X Circulating Supply.
The maths is confusing but in layman terms it is
Market Cap is the amount of Fiat money (USD, GBP etc) currently invested into a Cryptocurrency.
I think that market capitalization is the value of all the units of a cryptocurrency that are on sale in the market at this time. It is a strong demand indicator because it shows you how much money has been invested in a particular altcoin.
The Market Cap is calculated by multiplying the Circulating Supply of a cryptocurrency by the Currency Price. The circulating supply is the number of units of a specific currency for sale in the market at any given time. The price of the currency is the cost of an individual unit of an altcoin.
The Market Cap is calculated by multiplying the Circulating Supply of a cryptocurrency by the Currency Price. The circulating supply is the number of units of a specific currency for sale in the market at any given time. The price of the currency is the cost of an individual unit of an altcoin.
I think so, also for me it is not like a value of company because stocks and cryptocurrencies are very different and prices make 1000x or can go zero lol. How can we define it?
Market capitalization is actually the value of the company's shares circulating in the market. Please understand that the value of the firm is different from the value of the company's assets, so the market capitalization of a company does not reflect the value of the company's assets.
Market capitalization is highly likely to be greater or less than the value of a company's assets.
for a public company, surely this market capitalization value is very important because it reflects the total value of the company. The magnitude and growth of a company's market capitalization is often an important measure of the success or failure of an open company. The bigger the market capitalization, the more expensive the company is appreciated by the market.
If you as the owner of a particular company and hold the shares of the company, of course the amount of market capitalization of the company whose shares you hold will affect your personal wealth value.
Market capitalization is highly likely to be greater or less than the value of a company's assets.
for a public company, surely this market capitalization value is very important because it reflects the total value of the company. The magnitude and growth of a company's market capitalization is often an important measure of the success or failure of an open company. The bigger the market capitalization, the more expensive the company is appreciated by the market.
If you as the owner of a particular company and hold the shares of the company, of course the amount of market capitalization of the company whose shares you hold will affect your personal wealth value.
Goid article. In summary market cap is the total dollar valuation of total supply of the coin. It increases with the rate.
Market cap, also known as market capitilization is the total market value of all of a company's outstanding shares. It is also incorrectly known to some as what the company is really worth, or in other words the value of the business. The market cap essentially represents the ammount of demand for the crypto or underlying. More people buying, bidding the price higher, leads to a higher market cap.
Hello everyone, for those who don’t know this article defines what a market cap is:
https://cryptobriefing.com/market-cap-is-just-one-way-of-valuing-crypto/
In short, it refers to the total dollar market value of a company’s outstanding shares. Commonly referred to as “market cap,” it is calculated by multiplying a company’s shares outstanding by the current market price of one share.
The crypto community and finance sector commonly use this term so its better to understand this term.
https://cryptobriefing.com/market-cap-is-just-one-way-of-valuing-crypto/
In short, it refers to the total dollar market value of a company’s outstanding shares. Commonly referred to as “market cap,” it is calculated by multiplying a company’s shares outstanding by the current market price of one share.
The crypto community and finance sector commonly use this term so its better to understand this term.
Market cap is the total volume of USD which is being invested in cryto currency.
Did you even bother reading the posts above you? No, marketcap is not the total amount of USD invested in a coin.....
Usually only a small % of a coin's circulation is actually traded, which means it would cost way less than the total marketcap to increase a coin's marketcap. Lets say that 10% of a coins circulation is actually traded, buying 1% of that would affect the marketcap by 10%.
And also that basically means every coin is heavily inflated (their marketcap) ^ see the above posts from other users about selling off and how marketcap really is a bad indicator.
Hello everyone, for those who don’t know this article defines what a market cap is:
https://cryptobriefing.com/market-cap-is-just-one-way-of-valuing-crypto/
In short, it refers to the total dollar market value of a company’s outstanding shares. Commonly referred to as “market cap,” it is calculated by multiplying a company’s shares outstanding by the current market price of one share.
The crypto community and finance sector commonly use this term so its better to understand this term.
https://cryptobriefing.com/market-cap-is-just-one-way-of-valuing-crypto/
In short, it refers to the total dollar market value of a company’s outstanding shares. Commonly referred to as “market cap,” it is calculated by multiplying a company’s shares outstanding by the current market price of one share.
The crypto community and finance sector commonly use this term so its better to understand this term.
Market cap is the total volume of USD which is being invested in cryto currency.
One thing you need to be aware of with market cap is not only what it is with the current # of coins in existence, but more importantly what it is if you figure in the total number of coins that will exist. Things are valued based on what will be, and a lot of new coins lure investors in with low market caps, when in reality it values the total coin project at absurd levels once you factor in the total number of coins that will exist. Some coins even have no hard limit at all, making them destined to be worthless in my opinion.
In short, it refers to the total dollar market value of a company’s outstanding shares. Commonly referred to as “market cap,” it is calculated by multiplying a company’s shares outstanding by the current market price of one share.
this is the important keyword! which means you shouldn't even be using market capitalization for a cryptocurrency specially when it comes to altcoins that have unaccounted for supplies. for instance all those premined altcoins that have billions of coins out.
that is why market cap is misleading and even useless in most cases when it comes to cryptocurrencies. in a company your shares mean something and you can't create fake ones not in circulation but in cryptocurrency world you can have literary any number of coins as your supply that you want. and market cap of a coin is simply supply * price.
One point that is important to recall is that a market cap is only a suggested valorization of the whole assets of a crypto-currency at a given time.
That doesn't mean that the sum of the values detained by all the holders of that crypto-currency equals that market cap.
Very important to remember because if people would actually want to sell at current market cap, price would fall down quickly and selling price would be far far less so far far less market cap.That doesn't mean that the sum of the values detained by all the holders of that crypto-currency equals that market cap.
Only indicator number, nothing more.
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