Yeah, exactly @monoxid. The only use for the market cap is comparing with other cryptocurrencies. Crypto market caps really shouldn't be compared with other assets. Also, getting sick of people saying '$X billion just came into the market' when people don't understand that the market cap =/= total capital invested. Unfortunately, these are just the problems we face with an onslaught of uneducated people rushing into the market. We've all got to painstakingly point them in the right direction at the end of the day!
RE: The Coming Altcoin Exodus
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The Coming Altcoin Exodus
what do you mean with "market cap =/= total capital invested"? i think i have an idea but i'm not sure with it...
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@mrdupin
People always seem to confuse the market cap as being equal to the total capital invested. So will say things like "$10 billion just left the market in an hour!" or "There is now $200 billion more invested into crypto!" when the actual totals for the real capital invested are much lower. This is because not everyone bought the coins they hold for the current market price.
However, as time goes on and the bull market begins to ease off, or even reverse slightly, these numbers should begin to converge. As there will be people who bought in at higher prices than the market price which will mean the market price is closer to the average entry price per unit for hodlers.
It's safe to say that this isn't the case right now. Especially when some coins make triple digit gains in a day.
Hope this clears what I meant up a bit more!
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Ok thank you, first time i think about that! This brings a new perspective for me and my investing behavior.
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It means that not all who hold a certain coin have bought it for the current market price. They probably bought it for much lower price, therefore the total capital invested does not equal the market cap.
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