HOW PRICE OF A COIN INCREASES & GUIDENCE ABOUT MARKETCAP
FUTURE POSSIBILITY: The future possibility for crypto is bright. Cryptocurrencies can be the basic, universal ways of transacting in some shape or manner While the timing of the arrival remains obscure, the time of crypto business is light. The switch from the fringes into the mainstream would be the most opportune moment for corporations to create real-world solutions for these emerging business challenges. CRUICIAL ELEMENTS BEFORE INVESTING: One of the crucial elements to take before investing in any cryptocurrency is to get out that coin provision. Some cryptos have limited provision, meaning their supply is capped to certain limited amount Whereas, some cryptos have endless supply, meaning there is no bad cap made for this specific coin In either case, it is important to see the pace of change at time. At most of this example; the rate of action of the coin is quicker in the past years and over time the pace of action diminishes. CIRCULATING SUPPLY GUIDE: Every place we would see that lists out items by price, quantity and market cap does indeed from circulating supply rather than overall supply. Circulating supply signals how some coins are in circulation; but does not add coins taken by the work. By comparison; overall supply includes coins in circulation + coins taken by this work. The flies in the face of fundamental valuation rules. When valuing the product, for instance, we measure the market cap by estimating (stock price) *( shares in circulation + shares taken by company). HOW VALUE OF A COIN INCREASES: Lets see the simple example of how the change in value impacts the market cap from the circulation supply. Suppose we have two coins that are both valuable $ 1, but one gets the new circulation supply of 1 ,000,000 coins and other gets the circulation supply of 100,000. That means the smaller circulation supply coin has the $ 100,000 marketcap and the other coin will approach $1,000,000.
