Explain bitcoin market cap

Market Capitalization = (Priceof BTC) x (Totalbitcoins in circulation) Similar to the way the Market Capitalization of a company reflects the perceived worth of its business, the Market Capitalization of Bitcoin Core (BTC) reflects the perceived worth of Bitcoin Core (BTC) as a value network. Jun 03,  · But while the term is not quite accurate, the Bitcoin market cap is a convenient shorthand for describing what all the world's bitcoins are worth at a given point in time. And it . rows · Today's Cryptocurrency Prices by Market Cap The global crypto market cap is $B, a .

Explain bitcoin market cap

• Bitcoin market cap | Statista

Fortunately, you will not have to calculate Market Cap yourself because there are plenty of websites like CoinMarketCap that will do it for you. Taking a close at them and reading through the results can show you the potential value of a cryptocurrency. Now, keep in mind that the marketcap, as given by the main source that the entire crypto world follows coinmarketcap. This will always be MUCH higher. A good rule of thumb is the lower the Market Cap, the higher the potential return on equity of cryptocurrency.

In other words, you can make more money by investing in coins with a lower market capitalization because there is more room for a market cap increase i. However, not every investor is comfortable investing in lower market cap coins. Many people invest in Bitcoin because its market capitalization has historically far higher than its closest rival, Ethereum. While high cap coins may be more stable, they are still volatile. Many people including large corporations and financial experts regard Ethereum as a far better cryptocurrency than Bitcoin.

They think this way because the ecosystem and technology behind Ethereum is far more versatile. It is possible to build solutions like smart contracts and markets in Ethereum, but not in Bitcoin. A big reason for this is that Bitcoin is that the only altcoin a lot of people are familiar with.

Those individuals are investing in Bitcoin, only because are not aware of alternatives like Ripple and Ethereum. Many other factors can distort the cryptocurrency market. Some central banks, the one in China, have been researching the possibility of national cryptocurrencies. Every investor should research the news about altcoins carefully on a regular basis — to avoid such nasty surprises. Investors should also carefully examine the Market Caps of all cryptocurrencies and estimate what a reasonable growth potential might be for the coin you choice to invest in.

Understanding the Market Cap and its limitations can help you make money in altcoins. Not knowing the Market Cap is a sure way to lose money and miss opportunities in the cryptocurrency markets. First, market cap does not tell you how much money has been invested net investment , especially in formative stages of growth. This follows the same logic as in point 2. If market cap is the value of all coins for sale right now then it is impossible to also be the amount of money invested in.

Bitcoin is not an altcoin. Correct — this would be one of my writers here that made that mistake. Your email address will not be published. I used to draw kitties every week. But lately, I have only been drawing one kitty picture a month. And soon, I will only draw a year. If your kitty drawings became a widely accepted mode of payment, then yes, your kitty drawings can be worth millions.

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The Coin Market Cap Explained 4 Comments

Jun 03,  · But while the term is not quite accurate, the Bitcoin market cap is a convenient shorthand for describing what all the world's bitcoins are worth at a given point in time. And it . Although a recent poll tipped BTC's market cap could Bitcoin after May hits its next market this is considered to — Satoshi in a Bitcoin price the Bitcoin price will million price predictions are Bitcoin will have roughly of $ trillion. (Total after May halving Edstrom made a prediction 5 days ago — of $, per coin. rows · Today's Cryptocurrency Prices by Market Cap The global crypto market cap is $B, a . Tags:Btc to eth trading, What time does bitcoin start trading, Fair market value bitcoin, How to make profit through bitcoin trading, Btc gold coin market