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Topic: What is Market Capitalization exactly? (Read 397 times)

hero member
Activity: 1218
Merit: 557
December 07, 2016, 08:24:05 AM
#8
Market capitalization is one of the most important characteristics that helps the investor determine the returns and the risk in the share. It also helps the investors choose the stock that can meet their risk and diversification criterion.

For instance, a company has 20 million outstanding shares and the current market price of each share is $100. Market capitalization of this company will be 200,00,000 x 100=$ 200 crore.
hero member
Activity: 994
Merit: 544
December 07, 2016, 07:45:40 AM
#7
Market cap is the current existing price of all bitcoins in circulation. When people starts to trade at exchangers doing buy and sell in simple terms, that affects the market capitalization. Market cap is determined by the average existing price of bitcoin on all exchangers, and it means if there is a dump the market capitalization goes down, and if the trend is focused on buying then the market capitalization is climbing up.
hero member
Activity: 644
Merit: 500
Transact Safer / Chase Better
December 07, 2016, 01:43:32 AM
#6
Market capitalization is nothing but it is the market value of a company's outstanding shares. This value can easily identified by taking the stock price and multiplying it by the total number of shares outstanding.
legendary
Activity: 1218
Merit: 1007
December 07, 2016, 01:16:53 AM
#5
Market cap is essentially the value of absolutely all the Bitcoin that exists (so, for right now close to 16 million coins) and then you multiply that by the value of Bitcoin, and you get the total value of all the Bitcoin in existence, or the market cap.

Currently I think the market cap is close to $12B right now, and the total value of all cryptocurrencies is numbered close to $14B.
full member
Activity: 583
Merit: 106
December 07, 2016, 12:52:19 AM
#4
thanks! got the point!
legendary
Activity: 3332
Merit: 6809
Cashback 15%
December 06, 2016, 09:06:20 PM
#3
Market cap is the total value of all the bitcoin in existence, all the outstanding stock of a given company, all the gold that's ever been mined.  That's the 'market cap' of each one of those things, although I don't ever hear that term used for precious metals.  Mostly stocks.  Someone correct me if I'm wrong.  I agree with most of what yayayo said.
legendary
Activity: 1806
Merit: 1024
December 06, 2016, 08:58:35 PM
#2
Market capitalization is simply the calculation of the projected total value of all units of a certain asset that is traded in a marketplace based on its current price. So for example, if you have a stock company that issued 1000 shares in total and 1 share recently traded for $ 500 in the marketplace, the market capitalization of said company is $500 X 1000 = $ 500.000.

Bitcoin has currently 16 million Bitcoin mined and one Bitcoin currently trades for roughly $ 750. So Bitcoin's market capitalization measured in dollar is $ 750 X 16 million = $ 12 billion. Bitcoin's market capitalization measured in Bitcoin is however 16 million - quite logically... Cheesy

Market capitalization is a projected, theoretical value. It's most likely not the amount of money you will receive when liquidating all shares of a stock / Bitcoin in the open market, because the price will drop because of it.

ya.ya.yo!
full member
Activity: 583
Merit: 106
December 06, 2016, 05:32:24 PM
#1
I'm not well experienced in BTC and economy in general so please bear with me.

Could please someone explain what market cap exactly?

If most of the people sell (for example) BTC, market cap would be decreased (?). IF lots of people invest in BTC Market cap would increase (?).

What i dont get is that why is it problem if lots of people would sell their BTC (or any other digital currency) on an exchange site  ( for example Cex.io)? That ammount still exist on Exchange site it wouldnt be destroyed.

What is exactly happening behind the scenes if if price Dump occur?

Thanks in advance.
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