Friendly reminder to everyone.
Price does not necessarily correlate with coin supply. This may be obvious to most people here but i see this argument far too often in Crypto forums and twitter.
In a crypto market bull run, you can have a coin with a market in the millions, surpass the price of a coin with a supply in the billions.
Price is ultimately the amount that someone is willing to pay for one ADA. Market cap is simply the last price someone was willing to pay multiplied by the total supply. It is useful in displaying the approximate total valuation of a coin but it does not accurately show the amount of cash invested.
Some people disregard the idea of a $100, $1000, or $10,000 ADA simply because the coin supply is in the billions. They often state that there isn’t even enough money in the world to reach that. This is wrong.
A coin with a 100B market does not mean that there is 100B cash invested in it.
Coin XYZ, with a max supply of 1,000,000 is currently priced at $1.
This means that the current market cap is $1,000,000.
Tomorrow, someone decides that XYZ is a great investment and purchases 1XYZ for $2 from me.
Now, the market cap is $2,000,000 because $2 X 1,000,000supply = $2,000,000
The net cash inflow in XYZ: $2
In conclusion, the fact that cryptos are often sorted in lists by market cap may be a factor that contributes to this misconception, what really counts in this game is quality.
The are 2000 coins but only a handful are true true quality and only a handful will make it. Cardano is showing more and more clear indicators of its potential with every roadmap update and with every move. Its team and their display of hard work are just shy of immaculate and they CH is an incredibly inspiring leader.
Follow the smart money, be the smart money.
Happy trading & hodling