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RE: The Coming Altcoin Exodus

in #bitcoin7 years ago

@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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