Currently there are 25,927,070,538 ADA circulating supply with a total supply of 31,112,483,745 ADA , why so many?
The number of coins issued has no real significance and is basically arbitrary. Charles stated in an interview when asked and said if you think there are too many just think of having something called K ADA and divide what you have by 1k and multiply the value by 1k
If I divide by 1k and then multiply by 1k I end up with the same number.
That’s the point, same value. The number of coins does not determine overall value, only the value of a single coin.
The overall market cap will determine the value of a single coin, does it not?
Other way round.
Marketcap = Price x Circulating Supply
There is literally no difference between:
- Marketcap 10.000.000.000 = Price 0,4 x Circulating Supply 25.000.000.000
- Marketcap 10.000.000.000 = Price 400 x Circulating Supply 25.000.000
I guess I would say the difference is circulating supply, and the difference would be $.40 or $400.00 being the value of the coin. For ADA to have a $400.00 value the market cap would have to be over $10,000,000,000,000 would it not?
Technically right now, yes. However, the more probable outlook is ADA to reach around $5-7 This time next year and $12-20 the year after that. If that + the fact that they want to bring a solid banking industry to over 3 billion people doesn’t light bring you on board, then I just don’t know if there is anything that I can tell you. The foundation is SO incrediby strong here that they won’t have to reaccomplish anything down the road (one so many of the other currencies)
@Prospectorjack. Imagine if there was only 1 Ada with like 50 decimal places. Compare that to the the current situation of how ever many billion Ada. What’s the difference? Mainly language. Don’t worry about the number of may supply. Look at market cap.
You don’t have to trust me. Trust maths. The khan academy made a video that will help you understand: https://www.khanacademy.org/math/arithmetic-home/multiply-divide/division-intro/v/the-idea-of-division
Oh, I am on board and I love Cardano and those are the same figures I am looking at in the next couple of years and I am happy with that, just out of curiosity I ask why so many ADA, I have a good idea as to why I want to see if I may be correct in my assumption.
I think it’s arbitrary apart from 1 aspect. If I were making a crypto with a large maket cap. for example if I thought it would soon have a market cap of $45B I would start off with 45B coins. That way people will be able to communicate the value of one coin without any distress.
@Gandalf I’m not following what you mean.
Maybe this way:
Just imagine you buy 1 kADA instead of 1000 ADA.
It’s current trading price of course now it’s not 0.xxx but xxx.
Not sure about but it often seems to me that people believe: oh that ADA there is so cheap. I can buy a lot of them for a couple of bucks (ETHs, Dollars, … wherever they started to earn their existing wealth) Then at a certain point they realize that market cap with such a (relative) large supply would prevent this coin to join the Ethers and Bitcoins in their xxx up to xxxxx Dollar values.
As others have said; it makes no difference how many coins you start with 21M or 21B or X.
One thing that is annoying if the number of coins is very low, is that the price of a coin becomes high in fiat currencies, so a very small number becomes significant.
e.g. 0.00009 BTC is 1 USD. Most people are not used to thinking in 5 decimal places.
It’s good to have a currency where it works out so that the value of each “coin” is close to $1. That way people can do rough estimates in their heads when they are moving the currency around. For example let’s say the price of Ada is 97c. If I told you i was going to give you 50 Ada, you would immediately know the rough value of what I’m sending you.
I agree, by adding that the typical 1 currency unit should be close to normal peoples normal life goods and consummations. (1-100 coins for 1-100 items, like a coffee, a meal, a garment, …)
Not like one (Bit)coin = one car or 10 bitcoins = my new apartment, and nobody wants to pay a normal daily good because they hope that in a couple of weeks they can buy 200x of them. (speculation)
It says a lot about most people who are involved in the cryptographic markets if they still count back on the FIAT money value. This looks very much like the investment is seen as a way to extract much more value quickly than they had to put in. This can only change if the goods are priced directly in cryptocurrencies and become buyable. And this cannot happen until we have found a way to create stable markets.
IMHO all thus “moneymooners” are preventing mass adoption. This is a bit OT here, but when looking to mass adoption for this supply and market cap, then think about how much coins each world citizen should have as an average value.
With 7-10 billion people, a circulating/max supply of 25-40 billion is rather small and not large.
The main question everyone should ask himself: what’s you goal? speculative gains or mass adoption?
This is inline with what I was assuming. I am also assuming that the goals of a large majority is speculative gains from what I gather on twitter, facebook, reddit , youtube, forums and in actual conversation which I think will be a catalyst for mass adoption. If there were no gains then we would probably not be having this conversation.