Market Cap Vs Inflow.

[MisterF]

I 'borrowed' this;


So I thought I should address a common misconception that a lot of people have in crypto.

It looks like most people think if the crypto market cap is $600 billion, it means that the money invested into the market currently is $600 billion. That's absolutely not true!

The money actually invested into a market is called inflow. This is the actual money that has been invested into a market. Whereas, the market cap is the current circulating supply of crypto assets multiplied by the current price of those assets.

Here's a simple example to explain this to you.

Suppose someone invested $10,000 into Icon (ICX) at 10 cents and the current price of Icon is at $10, it would mean that the value of that $10k has increased to $1m. This $1m would represent the current "market cap" whereas the actual "inflow" of capital was only $10k.

Understanding the difference between these 2 figures is crucial because it can help you better understand the impact of certain factors

 

[wh0tever]

Thanks alot! Good explained.

 

[bk071]

Thanks alot! Good explained.

I agree with this guy. Very good explained.

It's important to know the difference.

 

[cursedbrain]

@MisterF Good read! This market cap thing can also go backwards, in the sense that the ICO could start at $2 and then the price could drop to $0.10, reducing the total market cap accordingly.

 

[davids355]

Didn’t know that. Hadn’t even thought about it. It’s good to understand that for sure, and well explained by the way.

 

[Deleted member 969102]

There is no difference! INFLOW = MARKET CAP!!!!

Here's lord r3l4x's mighty explanation

No it will never reach this size of price... Why? Because of circulacion size. I will repost my older post.

It is even more easier to count with this cryptocurrency.

Let's pretend tomorrow everybody will gonna sell all their Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Dash and then buy Ripple.

$245,017,421,058 + $73,007,862,975 + $42,427,889,654 + $13,314,570,373 + $8,863,306,428 = 382,631,050,488

382,631,050,488 : 38,739,144,847 = $9,80

So you need to understand that this is basically not possible them to rise even to 10 dollars...

/s

 

[cursedbrain]

There is no difference! INFLOW = MARKET CAP!!!!

Here's lord r3l4x's mighty explanation





/s

Wrong. Assuming r3l4x's scenario, if everybody would sell their Bitcoin, Ethereum, Litecoin, etc.. those numbers would not correspond as the price per coin will drop dramatically, and so would the market cap. @elavmunretea Don't believe everything you read.

 

[Deleted member 969102]

/s

Don't believe everything you read.

 

[unishipping]

So how can we know the inflow ( real cash come to the market ) ? I believe that it is a very important indicator to know how wealthy of market is

 

[virtualbyron]

I never thought about it, it will be interesting to know the real value invested in total

 

[SamLewis]

Last year when the market went up by a billion in a few days somebody I worked thought it was Richard Branson investing the billion. It takes realy stupidity to think that the market cap is how much has been put into the market. Absolute terible human beings.

 

[r3L4x]

There is no difference! INFLOW = MARKET CAP!!!!

Here's lord r3l4x's mighty explanation





/s

I`m not loard, few weeks back sold my all crypto and invested in shop and another dating website. This is not for my as it is to tempered nishe, my one friend is rich and he have have 20 bitcoin. So imagine how he is feeling now when he could sell all bitcoins when price whose 18k? This game is lame at any end you will gonna be sad, as one day it rises and you are sad that you not invested more money, another day it falls and again you are sad as you did not sold it, so this is not for my.

And yes it is all big bubble it showed bitcoin, iota and ripple. I know lot of people who are making $500 in day on investing $100 in day on facebook ads, so there is plenty more nishes where you can make steady money and bigger money basically without risks.