Jump to content
BlackRainbowFT

100 billion XRP vs 21 million BTC. There are actually only ~48x more divisible XRP units than Bitcoin

Recommended Posts

Guest

The amount of drops per coin cannot be increased, as this will inflate the coin. 

Share this post


Link to post
Share on other sites
16 minutes ago, Niall said:

You clearly state the market cap is a measure of fiat value, and that market cap is a handicap to how high price can go. This is not correct, if market cap was $100 trillion, it doesn't mean that $100 trillion has been invested in xrp..............

No it means you would need at least $100 trillion to purchase every XRP in existence based on current supply and demand - probably more.  

18 minutes ago, Niall said:

. Market cap is last traded price x existing coins, that's all. It's only use is to put cryptocurrencies in a ranking order, other than alphabetical. In fact, the market cap figure shouldn't even have a $ sign in front of it.

 

I cannot believe that when anyone is valuing a coin they do not take into account how many there are, that is fundamentally wrong....the market cap puts perspective on the last sale price by basically saying 'OK if you were to buy every single one of these assets at the price you paid it would cost you X' 

Now would someone tomorrow buy 50,000,000,000 XRP for $100,000,000,000 maybe - as $2 could be a fair price for the asset in its current state knowing the potential......but would someone pay $50 trillion!! of course not as it is simple not mature enough and hasn't proved its worth. Now turn that someone into everyone.....people should be able to understand how what their paying for 10 - 20 - 2,000xrp effects the whole picture of the value of all the coins.  

I think you need to try in your arguments to substitute XRP for Dollars or any stock or any other asset on the planet. 

This is simple realism and economics, I really hope people are taking market caps into account because if they dont then thats how crashes happen and bubbles burst.

This is not FUD etc. this is trying to make sure we avoid ridiculous runs on speculation created by people who know how to manipulate to their benefit. Market Cap is important to measure the progress to date and literally the value of every asset in existence. 

I don't mean to condescend etc. I've been in XRP for a while and frankly the last month or so as fruitful for my own investment, it is also bringing a lot of speculation that may hurt a lot of individuals if it continues, over hypes and crashes.

Share this post


Link to post
Share on other sites
Guest

I'm not going to get into a market cap debate with you but your understanding of it is completely wrong. You don't seem to have a grasp on how a bid order of $100 trillion would affect the market either. I'll leave it up to someone else to explain it to you. 

Edited by Guest

Share this post


Link to post
Share on other sites
47 minutes ago, Niall said:

I'm not going to get into a market cap debate with you but your understanding of it is completely wrong. You don't seem to have a grasp on how a bid order of $100 trillion would affect the market either. I'll leave it up to someone else to explain it to you. 

That's fine no rebuttal required.

To be honest this is all theoretic but I will always maintain that Market Value of the total assets should always be a metric that is scrutinised. 

Share this post


Link to post
Share on other sites
Guest
1 hour ago, XRPesusChrist said:

That's fine no rebuttal required.

To be honest this is all theoretic but I will always maintain that Market Value of the total assets should always be a metric that is scrutinised. 

Last comment on this...

The market cap of a cryptocurrency is not the market value, it is merely a metric to rank cryptocurrencies in a specific order. If I create a coin with 1 million units and sell some of those coins to my friend for $10 each, I have created a coin that has a market cap of $10 million. Does it mean all my coins are collectively worth $10 million? No, it doesn't. Does it mean $10 million has been invested into my coins? No, it doesn't. Does it mean someone has to invest at least $10 million to buy the entire supply of my coin? No, it doesn't. 

 But it allows my coin to be placed in a specific ranking when compared to all the other coins out there, that is all. 

The only way to determine a somewhat accurate value of the market is to use Metcalfe's Law and volume, but as the market is still so young and speculative, nobody really knows how to accurately value this asset class yet. Tom Lee has some good explanations to how Bitcoin may be valued. 

The market is still in price discovery mode and will be for the foreseeable future. There is no ceiling on how high the price can go. If eventually 80% of the total xrp supply is kept off the market, the price of the remaining tradeable xrp could be in the 4 digits. 

Share this post


Link to post
Share on other sites
3 hours ago, Niall said:

Last comment on this...

The market cap of a cryptocurrency is not the market value, it is merely a metric to rank cryptocurrencies in a specific order. If I create a coin with 1 million units and sell some of those coins to my friend for $10 each, I have created a coin that has a market cap of $10 million. Does it mean all my coins are collectively worth $10 million? No, it doesn't. Does it mean $10 million has been invested into my coins? No, it doesn't. Does it mean someone has to invest at least $10 million to buy the entire supply of my coin? No, it doesn't.

Supply and demand dictates the price based on a whole host factors, but market cap gives you a reflection of the current value people are willing to pay for the total supply, theoretically. 

 Oh. to answer. 

YES, if 10$ demand was maintained...otherwise your friends just overpaid based on nothing. Darn they should have looked at the market ca....oh never mind.

NO, but if demand remained it would. Until you sold your lovely $10 units...and demand stayed at $10 levels cause they're great.

YES, I'd you sold them all at 10$ and say demand was always above 10$ because your coin allowed for quick transaction times say. 

As you said once this market matures we shall see how this falls but I can guarantee that people will appreciate market caps of currencies and what they represent. 

Who in there right mind would not consider the number of units available (supply) and price (demand) relative the market cap (total supply x current demand) 

Also taking 80% of the supply of the market would work with products but not a currency......

'The only way to determine a somewhat accurate value of the market is to use Metcalfe's Law and volume' well this isn't correct really....this has just been raised as it fits the trends in adoption in bitcoin BTW. It is not a law for currency based economics.....

Tired. Going to sleep in a cave for 3 days do not open the boulder. 

 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...