Although most of the predictions of the experts are in favor of the Bitcoins’ growth, still, the world is skeptical when it comes to the Bitcoin investment procedure because the market price of the Bitcoin is fluctuating drastically! It is here most of us err, as judging the Bitcoin not by market price value but by market cap is the best! Not convinced? Then, here comes the reasons!
So, what is a market cap?
This term that has been first introduced in the stock market means the combined value of all the available shares of the specific public listed company, which is determined by multiplying the per price share value with the total number of available shares in the market!
Similarly, for the Bitcoins, the market cap means the total number of available Bitcoins multiplied by the per price value of the Bitcoin! But, the world of Bitcoins is not exactly similar to the world of stock market, as the problem of unmined coins, lost coins, destroyed coins all appear! And that is why the market cap of the Bitcoins and, of course, the other cryptocurrencies in the market is determined by only considering the total number of coins in circulation or available to use and not the actual total supply figures!
So, why and how the market cap is the better parameter?
The market price value of an asset is said to fluctuate, which would be more drastic in the case of newer entrants like cryptocurrency! Therefore, considering it as the reliable parameter to understand the asset’s profitability and future would be insensible! On the other hand, the market value is capable of providing the better picture, as not only the profitability but also the worth of the asset can be perceived satisfactorily to come to a conclusion about its growth and success in the future! Also, the size of the market can also be understood by knowing the market cap value, wherein, also lies the scope of your investment venture!
To understand this better, consider the case of the Ripple! Although the Ripple’s per price market value at the time of this article is $0.674, the Ripple standards as the third largest cryptocurrency by market cap, whose value is more than $20 Billion, impressively! It shows the market of the Ripple is wider, which improves your scope and probable profitability when everything goes in the favor of the Ripple in future!
Thus, go by market cap to choose your favorite cryptocurrency investment asset, instead of the market price value! If the Bitcoin is your chosen asset then, why not use a reliable crypto robot to trade them without any complexity? In that case, is the Bitcoin Code legit? Read for yourself to know!