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Offline btswildpig

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Some people often view increasing in market cap as "gained value for the system" , well , it's not .

Let me dumb this down for you . The whole idea of market cap is to calculate the total price of the available share supply at current price .

It would be accurate if the available share supply equals to the supply in circulation . But in reality , there are only 1/10 or even 1/20 shares in circulation . (some coins are even worse , because they can not even sell 1/50 or 1/100 out without  collapsing the price )

If we factor in the 1/20 ratio , then a system worth 47 million USD on market cap is only worth 2.35 million USD in the sense of real money .

When we want to expand the spending because we're feeling rich by increasing in market cap in short term , please always remembers that cold hard fact ---- We don't have that much to spend to begin with . Please do not feel any dilution is insignificant just because it's a "low percentage of total supply" , but also factor in "how much percentage of circulation " , you'll see the answer .

The latest pump increased 12.5 million USD in market cap with only 0.6 million USD in cash .  That's another example of how 1/20 becomes the pattern in the BTS eco-system .

So , please do not feel angry when the shareholders make it tough on some "only 3000USD a month income job" of a 100% pay rate delegate . No matter how much the market cap increases , the pattern is still the same , 1/20 , it's easy to lose sight on that .
« Last Edit: December 01, 2014, 04:28:15 AM by btswildpig »
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Offline Empirical1.1

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Re: Economics on BTS 101 : Market cap is not our wealth to spend easily
« Reply #1 on: December 01, 2014, 04:00:07 AM »
Some people often view increasing in market cap as "gained value for the system" , well , it's not .

Let me dumb this down for you . The whole idea of market cap is to calculate the total price of the available share supply at current price .

It would be accurate if the available share supply equals to the supply in circulation . But in reality , there are only 1/10 or even 1/20 shares in circulation . (some coins are even worse , because they can not even sell 1/50 or 1/100 out without  collapsing the price )

If we factor in the 1/20 ratio , then a system worth 47 million USD on market cap is only worth 2.35 million USD in the sense of real money .

When we want to expand the spending because we're felling rich by increasing in markep cap in short term , please always remembers that cold hard fact ---- We don't have that much to spend to begin with . Please do not feel any dilution is insignificant just because it's a "low percentage of total supply" , but also factor in "how much percentage of circulation " , you'll see the answer .

The latest pump increased 12.5 million USD in market cap with only 0.6 million USD in cash .  That's another example of how 1/20 becomes the pattern in the BTS eco-system .

So , please do not fell angry when the shareholders make it tough on some "only 3000USD a month income job" of a 100% pay rate delegate . No matter how much the market cap increases , the pattern is still the same , 1/20 , it's easy to lose sight on that .

 +5% Good points.

Offline gamey

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Re: Economics on BTS 101 : Market cap is not our wealth to spend easily
« Reply #2 on: December 01, 2014, 04:33:35 AM »
Some people often view increasing in market cap as "gained value for the system" , well , it's not .

If you can not measure value for the system by market cap, what measurement do you use ?
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Offline btswildpig

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Re: Economics on BTS 101 : Market cap is not our wealth to spend easily
« Reply #3 on: December 01, 2014, 04:43:42 AM »
Some people often view increasing in market cap as "gained value for the system" , well , it's not .

If you can not measure value for the system by market cap, what measurement do you use ?

revenues , market depth , investor's confidence , sustainability of the economic model ....
That's all that matters . Market cap can easily be faked .

It would be unwise to think any increment in market cap in short term can off set dilution in the same effect as increasing in revenues .
这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

Offline ripplexiaoshan

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Re: Economics on BTS 101 : Market cap is not our wealth to spend easily
« Reply #4 on: December 01, 2014, 04:46:49 AM »
Some people often view increasing in market cap as "gained value for the system" , well , it's not .

If you can not measure value for the system by market cap, what measurement do you use ?

Compared with one month ago, or two month ago when stan said "there will be big thing soon", the current price and market cap of BTS is much lower, but actually, I think BTS system is constantly gaining value these days.

How to measure the value of a cryptocurrency is really a challenging topic, but market cap is definitely only one of all parameters.
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Offline bytemaster

Re: Economics on BTS 101 : Market cap is not our wealth to spend easily
« Reply #5 on: December 01, 2014, 04:52:53 AM »
If the people earning the BTS are holding 80% and only selling 20% to live then it balances out some.
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Offline Overthetop

Re: Economics on BTS 101 : Market cap is not our wealth to spend easily
« Reply #6 on: December 01, 2014, 04:56:12 AM »
Market cap is just one of the indexes as to the BTS value evaluation.

The more important index are like : the maturity of products, real users, the scale of excellent developing teams , merchants adopting BitAs...

After the merger , I believe the value of BTS will grow steadily.

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Offline gamey

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Re: Economics on BTS 101 : Market cap is not our wealth to spend easily
« Reply #7 on: December 01, 2014, 04:58:53 AM »
Some people often view increasing in market cap as "gained value for the system" , well , it's not .

If you can not measure value for the system by market cap, what measurement do you use ?

revenues , market depth , investor's confidence , sustainability of the economic model ....
That's all that matters . Market cap can easily be faked .

It would be unwise to think any increment in market cap in short term can off set dilution in the same effect as increasing in revenues .

I thought the whole point is market cap.  What are revenues these days?  I'm confused.

Market depth will grow with market cap as will investor's confidence.

Market cap can't be easily faked for long.  I don't understand how you would believe this.  If market cap is too high, people will sell for value.  If it is too low, people will buy.  Liquidity problems adds variance to this process, but that should never be confused resulting in dismissing the value of market cap.
I speak for myself and only myself.

Offline btswildpig

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Re: Economics on BTS 101 : Market cap is not our wealth to spend easily
« Reply #8 on: December 01, 2014, 05:01:37 AM »
If the people earning the BTS are holding 80% and only selling 20% to live then it balances out some.

That would be a big if , like if "the miners are holding 80% and only selling 20% to live" .

That being said , this should be an interest topic to show how the delegates should do if they want their future in the BTS system can be sustained .

这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

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Re: Economics on BTS 101 : Market cap is not our wealth to spend easily
« Reply #9 on: December 01, 2014, 05:07:22 AM »
If the people earning the BTS are holding 80% and only selling 20% to live then it balances out some.

I expected a better response.

So did I!

Should I put one myself or wait for a better one by someone smarter than me?

Offline btswildpig

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Re: Economics on BTS 101 : Market cap is not our wealth to spend easily
« Reply #10 on: December 01, 2014, 05:08:31 AM »
Some people often view increasing in market cap as "gained value for the system" , well , it's not .

If you can not measure value for the system by market cap, what measurement do you use ?

revenues , market depth , investor's confidence , sustainability of the economic model ....
That's all that matters . Market cap can easily be faked .

It would be unwise to think any increment in market cap in short term can off set dilution in the same effect as increasing in revenues .

I thought the whole point is market cap.  What are revenues these days?  I'm confused.

Market depth will grow with market cap as will investor's confidence.

Market cap can't be easily faked for long.  I don't understand how you would believe this.  If market cap is too high, people will sell for value.  If it is too low, people will buy.  Liquidity problems adds variance to this process, but that should never be confused resulting in dismissing the value of market cap.

you can already see ripple's market cap over Litecoin . That should tell you something .
Ripple's price (= market cap) went up 300% with roughly the same cash that pumped BTS for 30% .

" If market cap is too high, people will sell for value"   that's a false anticipation because big whale can not sell even if they want to due to market depth .

I'm not talking about dismissing the value of market cap , but stressing the point that any increment in market cap can not be viewed as "money" to be easily spend because it's "insignificant comparing to the increment in market cap".
这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

Offline consultant

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Re: Economics on BTS 101 : Market cap is not our wealth to spend easily
« Reply #11 on: December 01, 2014, 05:08:44 AM »
Some people often view increasing in market cap as "gained value for the system" , well , it's not .

If you can not measure value for the system by market cap, what measurement do you use ?

Compared with one month ago, or two month ago when stan said "there will be big thing soon", the current price and market cap of BTS is much lower, but actually, I think BTS system is constantly gaining value these days.

How to measure the value of a cryptocurrency is really a challenging topic, but market cap is definitely only one of all parameters.

Finally, I realized the meaning of "there will be big thing soon"- If you missed the early stage of BTS, we offer you a chance to get more BTS in a very cheap price.

Go back to the topic, I think we use market cap as a measurement factor isn't some big issue. In stock market, even in "Forbes list of billionaires", they do the same thing, use "market value of stock".

Offline btswildpig

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Re: Economics on BTS 101 : Market cap is not our wealth to spend easily
« Reply #12 on: December 01, 2014, 05:15:33 AM »
Some people often view increasing in market cap as "gained value for the system" , well , it's not .

If you can not measure value for the system by market cap, what measurement do you use ?

Compared with one month ago, or two month ago when stan said "there will be big thing soon", the current price and market cap of BTS is much lower, but actually, I think BTS system is constantly gaining value these days.

How to measure the value of a cryptocurrency is really a challenging topic, but market cap is definitely only one of all parameters.

Finally, I realized the meaning of "there will be big thing soon"- If you missed the early stage of BTS, we offer you a chance to get more BTS in a very cheap price.

Go back to the topic, I think we use market cap as a measurement factor isn't some big issue. In stock market, even in "Forbes list of billionaires", they do the same thing, use "market value of stock".

The Forbes billionaires spend the money in their company according to their "revenue" instead of "market value of stock" .
这个是私人账号,表达的一切言论均不代表任何团队和任何人。This is my personal account , anything I said with this account will be my opinion alone and has nothing to do with any group.

Offline gamey

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Re: Economics on BTS 101 : Market cap is not our wealth to spend easily
« Reply #13 on: December 01, 2014, 05:19:47 AM »
Some people often view increasing in market cap as "gained value for the system" , well , it's not .

If you can not measure value for the system by market cap, what measurement do you use ?

revenues , market depth , investor's confidence , sustainability of the economic model ....
That's all that matters . Market cap can easily be faked .

It would be unwise to think any increment in market cap in short term can off set dilution in the same effect as increasing in revenues .

I thought the whole point is market cap.  What are revenues these days?  I'm confused.

Market depth will grow with market cap as will investor's confidence.

Market cap can't be easily faked for long.  I don't understand how you would believe this.  If market cap is too high, people will sell for value.  If it is too low, people will buy.  Liquidity problems adds variance to this process, but that should never be confused resulting in dismissing the value of market cap.

you can already see ripple's market cap over Litecoin . That should tell you something .
Ripple's price (= market cap) went up 300% with roughly the same cash that pumped BTS for 30% .

" If market cap is too high, people will sell for value"   that's a false anticipation because big whale can not sell even if they want to due to market depth .

I'm not talking about dismissing the value of market cap , but stressing the point that any increment in market cap can not be viewed as "money" to be easily spend because it's "insignificant comparing to the increment in market cap".

Personally I just think it is a case of loss aversion. 

Whales will be able to sell for value until the market corrects.

IMO nothing is as important as market cap.  What you have a hard time with is likely variance and it is a rare day to meet a person who intuitively understands it.  Everything else is just a little part of what makes up the market cap.

The money not in circulation shouldn't be dismissed.  It should mean the owners do not find the current value to be worth selling at.
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Offline bobmaloney

Re: Economics on BTS 101 : Market cap is not our wealth to spend easily
« Reply #14 on: December 01, 2014, 05:27:56 AM »
If this is viewed as any kind of real problem, I would guess that some kind of vesting program can be instituted.

Obviously, some delegates will require instant access when the funds are purposed to be used immediately - but other delegates may want to campaign to voluntary accept a vesting payment schedule to demonstrate their long-term belief and commitment to BTS.
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