Yes that is the calculation... however that is only measuring what someone at an exchange will pay for one purchase at one time and then multiples that feedback into the entire supply. It a metric that has transferred over from traditional valuations for a company, generally companies that own hard assets. If you want to understand the projected value of the coin liquidity is a more relevant metric. I should preface that when i reference "trade" in the above, i am referring to trading value in the sense of using the coin in the real world for its purpose not "trading" the coin on exchanges, or the value of the coin on an exchange.
These are great points for newbies. The concepts are necessary for understanding but the real value lies in being able to explain it clearly. Could you post this (with any updates) over on fyreum.org This could really help some people make better decisions.
Yes that is the calculation... however that is only measuring what someone at an exchange will pay for one purchase at one time and then multiples that feedback into the entire supply. It a metric that has transferred over from traditional valuations for a company, generally companies that own hard assets. If you want to understand the projected value of the coin liquidity is a more relevant metric. I should preface that when i reference "trade" in the above, i am referring to trading value in the sense of using the coin in the real world for its purpose not "trading" the coin on exchanges, or the value of the coin on an exchange.
These are great points for newbies. The concepts are necessary for understanding but the real value lies in being able to explain it clearly. Could you post this (with any updates) over on fyreum.org This could really help some people make better decisions.