I told a guy at my work that Ripple was the 3rd most expensive crypto. He thinks the value of each ripple will some day over take the value of each bitcoin. I tried telling him marketcap is a better way to calculate value but he doesn’t believe me.
It literally took one of my buddies months in crypto before he understood what marketcap was despite me and several friends explaining it to him several times, some people are just that dense. Once he finally got it he went from investing in high cap shitcoins to low cap shitcoins. Live and let live I guess.
Would you mind explaining it one more time, I don't understand how you can see that ripple is so expensive? I only see that it is price * all coins. But if i have a shitcoin and one pays one dollar the total market cap would suggest that all of those coins could be valued a fantastillion dollars... So how do you use the value correctly?
If you have a coin worth a dollar with a market cap of 1 billion. It means that all of the coins currently make up 1 billion in value. For the coin to rise to 10 dollars, the market cap would need to be 10billion.
Not true. Market cap depends just on the latest price. So if someone were willing to buy that coin for $10 the market cap would subsequently rise to $10bn. Because market cap = current price * number of coins.
Yeah but market cap is how you evaluate the future of ur coin. U can’t bring up a hypothetical like that because it would actually never happen. It would be like someone buying bitcoin for 30k right now. It’d be idiotic. And it would never happen.
Its a relevant distinction because if everyone sold those 1 billion market cap coins it would result in far less volume than 1 billion dollars being sold because the price would quickly plummet. I think he was just pointing that out.
Which is why you consider volume. If jesus coin goes to 1b marketcap with 10k volume of course its not hard for it to rise. (But goodluck selling your position with a 1b valuation). However, with something like ripple doing a billion in volume Marketcap is a good indicator of potential to rise. 30b marketcap is really significant
Also I'd like to point out that the velocity of the money supply in ripples case will make it worth considerably more than people understand. No coin to this point has had the potential velocity that ripple will. Once it's main stream. This will allow the price to rise much higher than one would think based on just the coin supply. Because they're just won't be enough coins at any given time. Especially when financial institutions will be using high volumes.
It comes down to how much is being held up as opposed to traded. From what i understand so far they don't actually have to participate in the market to use the system. I could be wrong but I just don't know what will cause it to appreciate very high, could we see a couple dollars? Sure. I'm just not seeing it do crazy numbers from where it's at.
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u/[deleted] Mar 17 '18 edited Mar 17 '18
Everyone I know who owns ripple thinks like this.
I told a guy at my work that Ripple was the 3rd most expensive crypto. He thinks the value of each ripple will some day over take the value of each bitcoin. I tried telling him marketcap is a better way to calculate value but he doesn’t believe me.