Can one of y'all explain market cap to me?

I don't understand market cap. Let's say there are 1,000,000 coins each priced two dollars, the market cap is 2,000,000 dollars. Now let's say that someone puts a buy order in for 1,500 coins.

The fact that there is demand for something of a limited quanity will raise the price, right? But does the amount the market cap goes up equal the amount put in?

Have two hundred billion dollars been spent on Bitcoin? If someone were to purchase one million dollars worth of bitcoin, could the market cap go up by 10 million?

>If someone were to purchase one million dollars worth of bitcoin, could the market cap go up by 10 million?

Well, could it?

could it?

Market cap is simply (supply)*(price), it does not give any information on how much could be bought or sold

I don't know can you just tell me? If the price of Bitcoin goes up like 60 cents that's a 10 million dollar change in marketcap, couldn't a million dollar buy change the price that much?

Then what is marketcap even useful for?

to calculate supply * price

why are you conflating market capitalization and price per unit?

market cap is just a measure of how much all the X that exists is worth. the market cap of bitcoin or a company's stock is how much all the bitcoin or shares in the world is worth at whatever price it is

if i had a dozen eggs, and no one in the world had any eggs, and each egg was worth $10, the market cap of eggs would be $120. there'd be $120 of worth of eggs in the world

Fuck you

Disregarding edge cases like making a shitcoin and selling it to your friend for a million billion a piece, it's a decent indicator of how much a coin is "worth". However, it is only an indicator, it makes no guarantees.

it tells you the total value of the total supply of something. it's a useful figure for valuation

a company with a $5 billion market cap is worth more (to the "market") than a company with a $1 million market cap. get it yet?

dick waving

and just to further expand on this, a company with a $100 share price might seem more valuable than a company with a $10 share price, but if there are only 5 shares of the $100/sh company whereas the $10/sh company has 5000000 shares, the $10/sh company has a larger overall value to the market since you'd need more dollars to have the same percentage of total shares

Look. Bitcoins market cap is a combination of several algorithms. We have cryptonight and sha256 combines with equihash which produces market caps. When enough market caps gets accumulated in the soft ripps of the skin the start to form colonies of strains. These makes a swallowing sound as to indicate tenderness, you and other humans will then proceed due to hypnosmells to put your dick in these soft ripps which are not filled with tender colonies of bitcoin marker caps. Humans can't resist the tenderness and end up releasing tender juices into the soft ripps.

This process slowly adds to bitcoin market cap. When enough humans fill their seed to the ripp a ripple is mined.

Looks like you could use some help, come ask us questions ZbMxYBn

thanks for the laugh mates. this was a good thread.

It is a measure of the value of a cryptocurrency that applies just about equally to all of them, unlike price.

You use it to know how much money is in the coin
It does not equal the market cap, but it is proportional to it. Bots keep the market cap artificial, but only to an extent, keep in mind there must be liquidity, otherwise a run on the exchanges would either colapse the market, or colapse the exchange

Basically you use it to know how much room a coin has to grow

Can someone explain to me what liquidity is?

A very liquid asset is something that can be traded instantly for money (keep in mind bitcoin can be treated as money in this market, since it's almost as liquid as fiat)
Ex would be gold, stocks

Certain coins would crash instantly to 0 if a small percentage were to be dumped.

Such coins may be liquid by definition, but they are pratically not liquid at all, since crashing the price to 0 when you sell them is the same as not being able to sell them in my book