There is a general misunderstanding in the cryptospace about price and the market cap. Please let me know if I have done a good job explaining. By the way, guys and girls, how is your stack going?
Good explanation, could also go into fully diluted MC, probably more important in stocks but it can be used as an indicator of the impact of future supply into the market. Ie. investors maybe afraid of the increasing supply, so this metric is useful for long-term investors to gauge future value of project. All IMO.
Absolutely. It is worth to look at things in different perspective using different metric. Thank you for sharing this information with me.
Thanks @Cinvalo and welcome back. Another angle to look at MC is that it is an indication of how the market values different crypto. BTC, ETH etc are the most valuable projects according to the market, so if someone wanted to devise a portfolio they could do worse than allot a % of their total investment to the top projects based upon market value. Though the danger with this approach is that unless you showed some of your own judgment you'd end up buying duds eg ADA and XRP.
