Why market cap is irrelevant | Bitcointalksearch.org

Rahar02

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Quote from: stompix on August 02, 2017, 09:08:16 AM

3 Bitcoin Cash Bitcoin Cash $10,335,537,178
10 billions out of nowhere, with people unable to transfer their coins...but still 10 f billions.

Any reason why we should even bother talking about marketcap in cases like this one?

I've had a few "expert" opinions in this trade about circulating coins.
How does it stand about bcc?

There's nothing wrong about market cap as it's just a result from coins price and amount in circulation.
10 billions bitcoin çash market cap come from amount of this coin in the market/people hands and its price that at that time maybe around $650. But look at current price of bitcoin cash at $275 and the amount in circulation is 16,487,425 which mean its market cap is $4,548,682,708. The most important thing that affects market cap is the price of every coin, and the same thing goes for bitcoin.

jhenfelipe

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Quote from: stompix on July 16, 2017, 10:03:36 AM

~snipped
And this should scare the shit out of people who invested in coins based on their rank on coinmarketcap.

I won't use the word scare, but EXACTLY those who invested in coins based on market cap will be the one's to be affected. I definitely not belong to them and honestly didn't even check those market cap numbers when deciding whether to invest in coin or not. When it comes to trading I'm more on checking if the market is active on a specific exchange (I'm more on doing short trades that's why).

iluvpie60

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Quote from: stompix on July 16, 2017, 11:30:52 AM

Quote from: DaMut on July 16, 2017, 11:15:19 AM

market cap created to monitoring price for every coin/project and many people use it to make a preparation and action,but you can see low cap coin had a good action.

But for me,a change in market cap only show that 'something' will happen soon,which is will lead for further action

Market cap created the perfect tool to attract newbies by artificially inflating the numbers.

They mine 1 million coins they release a thousand in reality which they can buy for 10$ a piece.
And suddenly that crapcoin has a 10 million market cap and noobs flock.
And in one week time most of them get fleeced.

I think you should more say that the MarketCap is misleading for almost all Altcoins.

It is definitely a useful tool in determining the current price/volume per day and what not.

I agree that the price with having a ton of coins or whatever is misleading too. What was that coin that only had 24 coins or something stupid, but it had 8 decimal places. So everyone trades in terms of those decimal places.

farhaan

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Quote from: stompix on July 16, 2017, 10:03:36 AM

Data from the last 24h:

Total market cap of bitcoin and some unnamed shitcoins in last 24 hours
72 billions > 64 billions
24 hours trade volume 3 billions(including trading between shitcoins)

Even assuming all the volume was from sold coins the market cap went down 3 times more.

So everybody concern with the fall in market cap and billions evaporated please take a break and breath.
There is no Armageddon happening, no whales running with billions, no Chinese mafioso withdrawing trillions from the market.

There are 1 million coins with 100$ price.
I sell 1000 coins and the market cap drops to 99$.
I pulled out 100 000$ but the market cap dropped by 1 million.

Marketcap is irrelevant.

And this should scare the shit out of people who invested in coins based on their rank on coinmarketcap.

We should not invest in any altcoin on just seeing its market cap.Market cap is irrelevant.Market cap could be increased easily for an altcoin by just placing a high sell order for a coin.Market cap is calculated by multiplying total number of coins available with the last price of sell order.So,it could be easily manipulated.

stompix

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Blackjack.fun

3 Bitcoin Cash Bitcoin Cash $10,335,537,178
10 billions out of nowhere, with people unable to transfer their coins...but still 10 f billions.

Any reason why we should even bother talking about marketcap in cases like this one?

I've had a few "expert" opinions in this trade about circulating coins.
How does it stand about bcc?

stompix

legendary

Activity: 2912

Merit: 6403

Blackjack.fun

Quote from: Theb on July 17, 2017, 08:45:04 AM

Being the largest market cap in cryptocurrency means that it is more volatile compared to other currencies meaning that is can be profitable for traders.

Why?
The eth market was far more volatile at half the value.

Quote from: pitham1 on July 16, 2017, 07:43:17 PM

Until you come out with a better metric, market capitalization is going to stay.
At least, it gives you an idea of the value of coins in circulation. It can be manipulated, but that doesn't take away its usefulness.

An ideea , probably..
Because nobody has a clue how many coins are in reality in circulation.
Has satoshi lost his coins?
Are all the coins listed as lost in here really lost forever?
https://bitcointalksearch.org/topic/list-of-major-bitcoin-heists-thefts-hacks-scams-and-losses-old-83794

Theb

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I don't think it is totally irrelevant when it comes to trading or investing in general. The market cap is a way to determine where the market is participating more. For example Bitcoin has the largest market cap among the cryptocurrencies meaning that in terms of Volume and Price Bitcoin is the number one cryptocurrency. Being the largest market cap in cryptocurrency means that it is more volatile compared to other currencies meaning that is can be profitable for traders. Other than being the largest market cap traders also observe sudden surge in market cap which they have a chance to participate in.

error08

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Quote from: stompix on July 16, 2017, 10:03:36 AM

Data from the last 24h:

Total market cap of bitcoin and some unnamed shitcoins in last 24 hours
72 billions > 64 billions
24 hours trade volume 3 billions(including trading between shitcoins)

Even assuming all the volume was from sold coins the market cap went down 3 times more.

So everybody concern with the fall in market cap and billions evaporated please take a break and breath.
There is no Armageddon happening, no whales running with billions, no Chinese mafioso withdrawing trillions from the market.

There are 1 million coins with 100$ price.
I sell 1000 coins and the market cap drops to 99$.
I pulled out 100 000$ but the market cap dropped by 1 million.

Marketcap is irrelevant.

And this should scare the shit out of people who invested in coins based on their rank on coinmarketcap.

And why you mentioned included shitcoins too if it isn't irrelevant? If you're talking about bitcoin marketcap, then it would be more focused on current events regarding bitcoin price drop back to $1820, then the market cap should be decline as well because it is related to bitcoin price.
I've never so concerned to market cap and I guess people always look at the prices, whether it goes up or down.
No Armageddon happening, I agree with that ; it just another market manipulation by some people keep spreading false news about bitcoin crash.

Mandoy

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Aurox

Quote from: stompix on July 16, 2017, 10:03:36 AM

Data from the last 24h:

Total market cap of bitcoin and some unnamed shitcoins in last 24 hours
72 billions > 64 billions
24 hours trade volume 3 billions(including trading between shitcoins)

Even assuming all the volume was from sold coins the market cap went down 3 times more.

So everybody concern with the fall in market cap and billions evaporated please take a break and breath.
There is no Armageddon happening, no whales running with billions, no Chinese mafioso withdrawing trillions from the market.

There are 1 million coins with 100$ price.
I sell 1000 coins and the market cap drops to 99$.
I pulled out 100 000$ but the market cap dropped by 1 million.

Marketcap is irrelevant.

And this should scare the shit out of people who invested in coins based on their rank on coinmarketcap.

Market cap is not relevant and actually it is very helpful for us traders to decide on which coin should we invest on. The determine the market cap we need to multiply the current or average price of the coin with the total amount in circulation. If we just look at this definition we could somehow say that marketcap is irrelevant and useless since the marketcap is not the real value of all coins in the circulation since only a few orders were in that value. But even though it may seem that way marketcap is not useless and even in the stocks market it is also being used. It may be hard to understand but we see the marketcap as a guide in our trading and thus it is very helpful. Checking the marketcap against the volume and the total number of coins in the circulation we could somehow predict the possible price flow of a coin.

Conasse

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The OP made a good point with coinmarketcap and I agree with him/her when he is saying it's only good to catch newbie. Of course I don't deny there are some good datas we get as well

Kotone

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The problem here is those who are using bitcoin and afrid to lose their profit there are turning there bitcoin into fiat currency they don't want to hold their bitcoins coz the profit they will make will become useless if they didn't turn it anyway. Honestly they actually panic and they sell it all for real and they will be waiting for the price to be come decrease at its maximum decreasment and then buy again and wait for the increasement will be happened.

eternalgloom

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Quote from: BigBall on July 16, 2017, 05:55:48 PM

I will buy bitcoin when it reach less than 1000$ because now panic started and many persons are scared that their bitcoin wallets will be hacked but everything will be fine if they use some hardware wallets.I am sure that after painc bitcoin will worth more than 3000$ what is really great Cheesy

.

What are you even talking about? The price isn't dropping because 'people are scared that their wallet will be hacked'.
Prices are dropping because people are scared of a possible split after August 1st.

Those are two completely different things.

The_prodigy

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Quote from: pitham1 on July 16, 2017, 07:43:17 PM

Until you come out with a better metric, market capitalization is going to stay.
At least, it gives you an idea of the value of coins in circulation. It can be manipulated, but that doesn't take away its usefulness.

Really the problem would be the panoc of people i d the steady decline of Bitcoin but I agree that it is not the armageddon yet and that this is just a trend in the stock that would come up once it gets there. The market cap is stable and I also believe that there is nothing going on behind it that is manipulating everything that we are thinking it should be.

pitham1

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Until you come out with a better metric, market capitalization is going to stay.
At least, it gives you an idea of the value of coins in circulation. It can be manipulated, but that doesn't take away its usefulness.

javalemcgee

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Because you don't see the math properly. 3 billion loss from the market cap does not mean that exactly 3 billion dollars exited from the market. Markets don't work like that.

Croin

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Marketcap is the most relevat value at all!

Marketcap = Coin count x Price

so its the "real value" of the coin as the coin count is totally artificial and the price is also completly out of nowhere so only the combination of both makes the price of the coin!

BigBall

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I will buy bitcoin when it reach less than 1000$ because now panic started and many persons are scared that their bitcoin wallets will be hacked but everything will be fine if they use some hardware wallets.I am sure that after painc bitcoin will worth more than 3000$ what is really great Cheesy

.

mcman

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Quote from: Hydrogen on July 16, 2017, 05:42:42 PM

Imagine you own a rock that is worth $2,500.

A few days later the same rock is valued at $1,800.

It is clear the value of your holdings has decreased.

I don't see what's "irrelevent" about that.

Huh

Its not irrelevant, people just want to rationalize that they aren't really losing as much money as they really are.

stompix

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Blackjack.fun

Quote from: Hydrogen on July 16, 2017, 05:42:42 PM

Imagine you own a rock that is worth $2,500.

A few days later the same rock is valued at $1,800.

It is clear the value of your holdings has decreased.

I don't see what's "irrelevent" about that.

Huh

And the value of the rocks has decreased because somebody has sold rocks x usd worth ?

Your example lacks everything.
What was the market cap of the rocks? How many rocks were sold?

It only proves exactly my point.
The value of the unit is relevant not the market cap.

Hydrogen

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Imagine you own a rock that is worth $2,500.

A few days later the same rock is valued at $1,800.

It is clear the value of your holdings has decreased.

I don't see what's "irrelevent" about that.

Huh

Iranus

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Leading Crypto Sports Betting & Casino Platform

This is mainly to do with altcoins. The smaller coins tend to get amplified market caps, because there is very little liquidity. There are coins on YoBit where the market cap can shift by tens of thousands with a volume of just a couple of hundred dollars.

So when BTC's dominance is "decreasing", its actual dominance in terms of money that has been put in remains quite high.

Yakamoto

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Quote from: Idrisu on July 16, 2017, 11:49:26 AM

I have noticed this also and I think market capitalization from https:// coinmarketcap.com is not much relevant to the way bitcoin price is dropping currently. I think we have this experience some months ago when we have this same hard forks issues. I will still said people should stop selling their coin out of panic because their will lose and the skills traders will buy and still sell for profit later.

Based on the slip in the market, however, selling now and buying later is a far better choice since you end up with more Bitcoin in your pocket, assuming that the price keeps going down after you sell, and you buy later when the price of Bitcoin is lower. Sure it comes with some risks, but selling now isn't as bad as you may think it is. I know this is something I'm doing, and I'm already reaping the rewards of selling a while ago. Now I just wait for it to either plateau at a bottom or slowly start inching back up, either way I have a lot of time.

Idrisu

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I have noticed this also and I think market capitalization from https:// coinmarketcap.com is not much relevant to the way bitcoin price is dropping currently. I think we have this experience some months ago when we have this same hard forks issues. I will still said people should stop selling their coin out of panic because their will lose and the skills traders will buy and still sell for profit later.

CowboyKiller

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With me market cap just is a tool for check the price of crypto in this time low, high or stable. It not prove the crypto market have signal recovery the price, maybe can do that but slowly than 24h Volume! But I not check 24h Vol with market cap, check in exchange site the altcoin I follow better than coinmarketcap

stompix

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Blackjack.fun

Quote from: DaMut on July 16, 2017, 11:15:19 AM

market cap created to monitoring price for every coin/project and many people use it to make a preparation and action,but you can see low cap coin had a good action.

But for me,a change in market cap only show that 'something' will happen soon,which is will lead for further action

Market cap created the perfect tool to attract newbies by artificially inflating the numbers.

They mine 1 million coins they release a thousand in reality which they can buy for 10$ a piece.
And suddenly that crapcoin has a 10 million market cap and noobs flock.
And in one week time most of them get fleeced.

Yakamoto

legendary

Activity: 1218

Merit: 1007

Quote from: stompix on July 16, 2017, 10:03:36 AM

Data from the last 24h:

Total market cap of bitcoin and some unnamed shitcoins in last 24 hours
72 billions > 64 billions
24 hours trade volume 3 billions(including trading between shitcoins)

Even assuming all the volume was from sold coins the market cap went down 3 times more.

So everybody concern with the fall in market cap and billions evaporated please take a break and breath.
There is no Armageddon happening, no whales running with billions, no Chinese mafioso withdrawing trillions from the market.

There are 1 million coins with 100$ price.
I sell 1000 coins and the market cap drops to 99$.
I pulled out 100 000$ but the market cap dropped by 1 million.

Marketcap is irrelevant.

And this should scare the shit out of people who invested in coins based on their rank on coinmarketcap.

Ah, but you see, there is no point investing in the top 25 (or 50) coins since the market cap is too high and it is unlikely someone will come along and pump the value by buying the shitcoin. That's why you always keep your alts way out of charts and invest in ICOs or other coins that are targets for pumps on other websites.

It's fine by me though, it's not like I have a stake in the market for right now. Let people invest how they may, there will always be bagholders and there's nothing that can be done about something like that.

DaMut

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Quote from: webtricks on July 16, 2017, 11:03:18 AM

Quote from: stompix on July 16, 2017, 10:03:36 AM

Data from the last 24h:

Total market cap of bitcoin and some unnamed shitcoins in last 24 hours
72 billions > 64 billions
24 hours trade volume 3 billions(including trading between shitcoins)

Even assuming all the volume was from sold coins the market cap went down 3 times more.

So everybody concern with the fall in market cap and billions evaporated please take a break and breath.
There is no Armageddon happening, no whales running with billions, no Chinese mafioso withdrawing trillions from the market.

There are 1 million coins with 100$ price.
I sell 1000 coins and the market cap drops to 99$.
I pulled out 100 000$ but the market cap dropped by 1 million.

Marketcap is irrelevant.

And this should scare the shit out of people who invested in coins based on their rank on coinmarketcap.

Although its true enough but it would be wrong to say that people shouldn't worry about drop in market cap. There is hardly any person who track the total cap of coins on CoinMarketCap, he/she is only concern to price and units hold by him/her.
Also whenever there is significant fall in any coin, market cap shows real value of tokens at the moment no matter if fall was due to less units or more than estimated value of coin. So suppose I sold 1 BTC for $1800 which brings down BTC price to $1800 then it is true that present BTC value is 1800xtotal BTC until and unless someone raise the price by selling additional unit.

Actually there're no wrong and right(relevant or not),
Everybody have their own concern regarding problem/situation and vision,some people using market cap for their tool and for some people they used sentiment.but none of them're wrong,because everything can be happen in cryptoworld.market cap created to monitoring price for every coin/project and many people use it to make a preparation and action,but you can see low cap coin had a good action.

But for me,a change in market cap only show that 'something' will happen soon,which is will lead for further action

webtricks

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Quote from: stompix on July 16, 2017, 10:03:36 AM

Data from the last 24h:

Total market cap of bitcoin and some unnamed shitcoins in last 24 hours
72 billions > 64 billions
24 hours trade volume 3 billions(including trading between shitcoins)

Even assuming all the volume was from sold coins the market cap went down 3 times more.

So everybody concern with the fall in market cap and billions evaporated please take a break and breath.
There is no Armageddon happening, no whales running with billions, no Chinese mafioso withdrawing trillions from the market.

There are 1 million coins with 100$ price.
I sell 1000 coins and the market cap drops to 99$.
I pulled out 100 000$ but the market cap dropped by 1 million.

Marketcap is irrelevant.

And this should scare the shit out of people who invested in coins based on their rank on coinmarketcap.

Although its true enough but it would be wrong to say that people shouldn't worry about drop in market cap. There is hardly any person who track the total cap of coins on CoinMarketCap, he/she is only concern to price and units hold by him/her.
Also whenever there is significant fall in any coin, market cap shows real value of tokens at the moment no matter if fall was due to less units or more than estimated value of coin. So suppose I sold 1 BTC for $1800 which brings down BTC price to $1800 then it is true that present BTC value is 1800xtotal BTC until and unless someone raise the price by selling additional unit.

stompix

legendary

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Blackjack.fun

Data from the last 24h:

Total market cap of bitcoin and some unnamed shitcoins in last 24 hours
72 billions > 64 billions
24 hours trade volume 3 billions(including trading between shitcoins)

Even assuming all the volume was from sold coins the market cap went down 3 times more.

So everybody concern with the fall in market cap and billions evaporated please take a break and breath.
There is no Armageddon happening, no whales running with billions, no Chinese mafioso withdrawing trillions from the market.

There are 1 million coins with 100$ price.
I sell 1000 coins and the market cap drops to 99$.
I pulled out 100 000$ but the market cap dropped by 1 million.

Marketcap is irrelevant.

And this should scare the shit out of people who invested in coins based on their rank on coinmarketcap.

Topic: Why market cap is irrelevant (Read 932 times)