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Topic: What is a Market Cap? - page 2. (Read 304 times)

jr. member
Activity: 83
Merit: 1
July 18, 2018, 06:37:20 PM
#3
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.
For example, if the first tenth of holders sells their crypto-currencies, there would be a dump in the asset price, and thus, the second tenth of holders to sell their crypto-currencies would only be able to sell them at a lower rate, and so on.
Last tenth of holders would sell them at a lower rate than all the other tenths.
And if we could add all the prices at which holders sold their crypto-currencies, that wouldn't equal market cap !
legendary
Activity: 2310
Merit: 2073
July 18, 2018, 01:45:17 PM
#2
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.
full member
Activity: 686
Merit: 146
July 18, 2018, 10:36:48 AM
#1
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.
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