The thing with the Market Cap

and why I don’t care about it

Source: https://coveredcallbasics.com/market-capitalization-why-size-does-matter/

Every time when I start doing my research I take a quick look on certain communities, mostly different Facebook groups, to figure out a potential new coin. Pretty soon I took notice that people, when discussing about a coin, usually refer to the amount of circulating supply and the total supply. Especially when they are against a certain coin …
They argue that the price will never reach 10$ if the total supply is (as an example) 38 billion coins, because this would lead to a market cap of $ 380 billion which is obviously a pretty high number in cryptocurrencies these days.

Source: https://coinmarketcap.com/ (19.07.2017)

Usually I would agree. Today it seems unreachable due to the current total Market Cap of around $85 billion. But this applies just now. Time will change and the market cap will rise and rise. Maybe sooner than we all might imagine.

When discussing with people I like to compare the Crypto market with stock exchanges and how they developed over time. Back in the late 1800 when the first Stock exchanges appeared it is highly likely that people thought exactly like they do today. After 200 years of trading the amount of money which is put in stocks is insane.

Today there are 60 major stock exchanges in the world with a total value of $69 trillion!
If one take a look at just the North American stock exchanges the numbers looks like that:

Source: http://money.visualcapitalist.com/all-of-the-worlds-stock-exchanges-by-size/

To me $85 billion looks pretty negligibly compared to the $28 trillion :-P

In my opionion many people have to understand that the cryptoworld is just at it’s very beginning at that we will see incredible gains over the next few decades! We as early adopters are in an awesome position that we can buy coins and tokens for such a low price – people in 5 years will wish they discovered the Crypto world earlier, like we did!

I need to add that this is, of course, just for long term holders applicable. Short term traders will probably need to take a quick look on supply and market cap to evaluate the opportunity of a quick gain. I am also aware that this is nothing new to many people, still wanted to speak out my mind about it. The previous text is based on quick research and my very own opinion.

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