What is the meaning of fully diluted market cap in the context of cryptocurrency?
Praveen DesaiDec 15, 2021 · 3 years ago7 answers
Can you explain what fully diluted market cap means in the context of cryptocurrency? How is it different from regular market cap?
7 answers
- Dec 15, 2021 · 3 years agoFully diluted market cap is a measure of a cryptocurrency's total market value, taking into account all potential future coins that could be in circulation. It includes not only the coins that are currently in circulation but also those that could be created through mining or other means. This metric provides a more comprehensive view of a cryptocurrency's potential value, as it considers the maximum supply of coins that could ever exist. Regular market cap, on the other hand, only takes into account the coins that are currently in circulation. So, fully diluted market cap gives investors a better understanding of the potential future supply and the impact it could have on the price of a cryptocurrency.
- Dec 15, 2021 · 3 years agoImagine you're at a buffet, and there's a plate of delicious cookies. The regular market cap is like looking at the number of cookies currently on the plate. But the fully diluted market cap is like looking at the number of cookies that could potentially be on the plate if the kitchen keeps baking more. It gives you an idea of the maximum number of cookies that could ever be available. In the context of cryptocurrency, fully diluted market cap takes into account not only the coins currently in circulation but also the potential future supply. It helps investors understand the full picture of a cryptocurrency's market value.
- Dec 15, 2021 · 3 years agoFully diluted market cap is an important metric for evaluating the potential value of a cryptocurrency. It considers the maximum supply of coins that could ever exist, including those that are not yet in circulation. This metric is particularly relevant for cryptocurrencies that have a high inflation rate or a significant number of coins yet to be mined. By taking into account the fully diluted market cap, investors can assess the potential impact of future coin supply on the price and value of a cryptocurrency. It provides a more comprehensive view of a cryptocurrency's market value and helps investors make informed decisions.
- Dec 15, 2021 · 3 years agoFully diluted market cap is a term often used in the cryptocurrency industry to describe the total value of a cryptocurrency, taking into account all potential future coins. It includes not only the coins that are currently in circulation but also those that could be created in the future. This metric is important because it gives investors a better understanding of the potential future supply and the impact it could have on the price of a cryptocurrency. It helps to assess the long-term growth potential of a cryptocurrency and can be used as a comparative measure between different cryptocurrencies.
- Dec 15, 2021 · 3 years agoIn the context of cryptocurrency, fully diluted market cap refers to the total market value of a cryptocurrency, considering the maximum supply of coins that could ever exist. It takes into account not only the coins currently in circulation but also those that could be created in the future. This metric is useful for investors to understand the potential future supply and the impact it could have on the price and value of a cryptocurrency. By considering the fully diluted market cap, investors can make more informed decisions about their investments and assess the long-term growth potential of a cryptocurrency.
- Dec 15, 2021 · 3 years agoFully diluted market cap is a term used in the cryptocurrency world to describe the total market value of a cryptocurrency, taking into account all potential future coins. It includes not only the coins that are currently in circulation but also those that could be created through mining or other means. This metric is important for investors as it provides a more comprehensive view of a cryptocurrency's potential value. By considering the fully diluted market cap, investors can better understand the potential future supply and the impact it could have on the price and value of a cryptocurrency. It helps to assess the long-term growth potential and investment opportunities in the cryptocurrency market.
- Dec 15, 2021 · 3 years agoFully diluted market cap is a measure of a cryptocurrency's total market value, including all potential future coins. It takes into account not only the coins that are currently in circulation but also those that could be created in the future. This metric is important for investors as it provides a more comprehensive view of a cryptocurrency's potential value and growth prospects. By considering the fully diluted market cap, investors can better understand the potential future supply and the impact it could have on the price and value of a cryptocurrency. It helps to assess the long-term investment potential and evaluate the competitiveness of different cryptocurrencies in the market.
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