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Market cap means nothing. I can create 10^32 coins out of thin air, sell one coin at 1$ to one customer. And the next thing I have is a coin with higher marketc
by smartties 6y ago
Market cap means nothing. I can create 10^32 coins out of thin air, sell one coin at 1$ to one customer. And the next thing I have is a coin with higher marketcap than bitcoin.
- tromp 6y agoThat's what makes PoW (with no premine) coins more honest. No coins out of thin air, and the price derives from actual demand for the coins that anyone can mine.
- selestify 6y agoTo get recognition as the coin with the highest market cap, you’d need to have it actually traded on an exchange. How many people on the open market are going to buy your coin for $1 on an exchange? There you go, your coin is worthless and has a market cap of roughly zero as determine by the open market exchange.
- smartties 6y ago> How many people on the open market are going to buy your coin for $1 on an exchange? Even if 1 client per year buy it (let's say my token purpose is to give to access to private content on my website), then my marketcap is still 10^32 $, because marketcap is just the number of supply x the last traded price of my coin. And yes, we both agree, marketcap has 0 value. It was just to make a point that using the marketcap as argument makes no sense.
- selestify 6y ago> Even if 1 client per year buy it What about the people who try to sell it after buying it? If they have to sell it for 10^-32 $ before someone buys it then that immediately drops your market cap to just about nothing. > And yes, we both agree, marketcap has 0 value No, I just explained why marketcap correctly values your coin as absolutely worthless.