Author Topic: Economics on BTS 101 : Market cap is not our wealth to spend easily  (Read 12778 times)

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Offline gamey

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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.
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Offline Overthetop

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 bytemaster

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 ripplexiaoshan

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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 btswildpig

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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 gamey

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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 ?
I speak for myself and only myself.

Offline Empirical1.1

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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 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 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 »
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.