How high can Tron (TRX) go? Or other coins? My findings in Market Cap and Coin Supply and managing expectations.

"Stop looking at price! Look at market cap!"

I've been told. Many of us have been told. I never really understood why. If I see a coin at 3 cents and I see another coin at $1,000 I automatically start picking out my preferred color Lamborghini. Well I know better now. I even made a cool tool for calculating the potential of a coin and a technique for finding big gain potential.

LINK FOR THE SPREADSHEET IS AT BOTTOM OF ARTICLE

Price potential can't be found by looking at other coins prices. PERIOD

Before I waste any experts time, what I am about to show is just a very simple forumla. Pick a big popular coin, or whatever is in the top ten on http://coinmarketcap.com, find its market cap, then divide it by the circulation of the coin you are evaluating.

That's it. You will now know the potential price of a coin because you know how many are in circulation and you know how much money is in a top ten coin.

Absolutes:

• Price = Market Cap / Circulation
• Market Cap = Price X Circulation
• Circulation = Market Cap / Price

Onto my little spreadsheet...

I used google sheets and a free plugin called Cryptofinance that pulls in Coin Market Cap data. This allows me to get current price, market cap, circulation, volume, and any other data that is available in the CMC api.

As you can see above, I have two big spots for comparing two coins. The first is the baseline coin. I am currently using EOS because it is in the tenth spot on CMC. Then I am comparing TRON to EOS. With Trons circulation/supply of coins I can divide that into a market cap of EOS and see what TRON would be worth if it had the Market Cap of EOS.

You must be realistic though. If I put in Bitcoin (BTC) and TRON, Trons potential price could be $3. Will Tron ever be that high? I doubt it. Will Tron ever be worth $100? Not for a long time.

With this data I can realistically understand price potential of a coin. Total Market Cap for every coin is important too. It tells you how much money is in all crypto.

Now let's get clever.

Lets find a coin that has a low supply, a low market cap, a decent price (subjective), and a utility that isn't stupid.

I am using Chain Link as an example because it has a lower circulation, a low market cap, a decent price, and I can clearly understand what its utility is. Next I am going to compare it to a top ten coin like EOS.

We can see it would cost us $8.59 to buy 100 LINK coins and if it ever hit today's market cap of a top ten coin our $100 would be worth $2,589.63. Those are some pretty good gains.

Now lets pick out a bad example...

I bought KIN thinking I was going to be rich. I said to myself, WHEN this hits $1 I will be a millionaire. I have over a million kin and it's current price is pretty low, but lets look at its supply and market cap.

If KIN ever had the market cap of a top ten coin like EOS, it would only be worth $0.01. It has an insane supply of 756,097,560,976! Even if it was for some crazy reason in the #1 spot on CMC it would only be worth $0.29. While these gains are great, the amount I have will never make me a millionaire in the current market.

Key Points:

• Global Market Cap fluctuates. The higher it gets, the higher potential for all coins. Keep an eye on this. When you see global market cap increasing headlines in the news, get excited.
• Circulation can change. Some companies have reserve circulation so they can release more (like Ripple XRP) and some places will actually do a coin burn where they "kill" or "delete" existing supply. This will change your price potential significantly. If KIN did a coin burn of their current circulation, it would need to be a lot. They have a current circulation but also TRILLIONS of total supply.

Okay that is pretty much it. Below is a link to my spreadsheet. The plugin is a little wonky sometimes and doesn't update as fast as I'd like but it is all free which is cool.

https://docs.google.com/spreadsheets/d/19uzewT0UMMtbaajmVZEEKPcvrg-gAWUu6sybnfB32Ss/edit?usp=sharing

I am thinking about making a website or an app that that has a portfolio to hold all your assets and then a drop down menu to compare market cap potential. I don't know how to program the API from CMC though and would be down to work with someone. Or just build it for me as long as I can have access for free ;)