Post
Topic
Board Economics
Re: WTF? $20.000.000.000 have poured into BCH in a couple of days
by
Don Pedro Dinero
on 12/11/2017, 10:01:44 UTC

Is crypto market cap calculated in a different way than stock market cap?

In the stock market, a company with 1 million shares worth $1 has a market cap of $1 million. To raise market cap to $2 million it’s not enough to buy 10.000 shares for $2. 1 million shares would need to be bought for that.
I haven't said that. Technicaly to increase the general market cap you don't need to buy a million shares for that price. Market capitalization is calculated by multiplying the current price by the amount of shares (in case with crypto we have coins, whatever). So if someone buy a share for 2$ then the market cap of the company should rise. In some cases the market cap might be a pure fiction and it doessn't mean that you can drop all your shares for that price.

Oh yeah! It would rise from $1.000.000 to $1.000.001 market cap.


1 million shares would need to be bought for that.
You are basicaly saying that you need to resell the company once again to make a new price. Just imagine what volume should companies have to perform the uual daily price changes when they need to do the full circle for a one price change step.


No, I am saying that to increase that amount I was talking about in just one move it would need to be done like that. That is theoretically because to begin with, that move would need to be done out of the market in a takeover bid. Market cap do change according to % of trades carried out.