Market Cap is the Single Biggest Predictor of How Much Any Asset Can Grow

[Part-Time Chad]

The smaller the market cap of an asset, the more potential for price appreciation; the bigger the market cap, the more money is required to move the price of that asset.

Duh!

So, let's say the market cap of a company is one million usd. It would only take an investment of one-hundred thousand dollars ($100,000) to move the price of that company's stock by 10%. But if the market cap of a company's stock is one billion usd, it would take a whopping one-hundred million usd ($100,000,000) to move the price 10%.

And so on.

Duh!

Water, but there are still a lot of ignorant dummies that need educating about how this works. Market cap is the reason why the price of Bitcoin now goes up like a snail on a wall. It's the single biggest reason it doesn't do 100X returns in 6 months like it used to (when its market cap was small). It takes A LOT more money now to move the price of Bitcoin, and the amount of money in circulation is limited. It's not infinite, hence Bitcoin now has much lower returns.

And, no, XRP is not going to $10K. Its fucking market cap is too damn high. To get it to $10K would take almost all the money in circulation to be invested in it.

Duh!

 

[Foreverbrad]

Gold certainly added some crazy gains despite having the biggest market cap of basically any single asset.

 

[Part-Time Chad]

Gold certainly added some crazy gains despite having the biggest market cap of basically any single asset.

Yeah, but it's not doing 10X-100X, like small-caps do.

 

[notgraycel245969]

The smaller the market cap of an asset, the more potential for price appreciation; the bigger the market cap, the more money is required to move the price of that asset.

Duh!

So, let's say the market cap of a company is one million usd. It would only take an investment of one-hundred thousand dollars ($100,000) to move the price of that company's stock by 10%. But if the market cap of a company's stock is one billion usd, it would take a whopping one-hundred million usd ($100,000,000) to move the price 10%.

And so on.

Duh!

Water, but there are still a lot of ignorant dummies that need educating about how this works. Market cap is the reason why the price of Bitcoin now goes up like a snail on a wall. It's the single biggest reason it doesn't do 100X returns in 6 months like it used to (when its market cap was small). It takes A LOT more money now to move the price of Bitcoin, and the amount of money in circulation is limited. It's not infinite, hence Bitcoin now has much lower returns.

And, no, XRP is not going to $10K. Its fucking market cap is too damn high. To get it to $10K would take almost all the money in circulation to be invested in it.

Duh!

whats a market cap?

 

[ilovelaura]

i dont understand the purpose of this post. silver just 2x despite having 4.5T market cap

 

[Part-Time Chad]

i dont understand the purpose of this post. silver just 2x despite having 4.5T market cap

You just made my point. Doubling in a year is not an exponential return. You can get 100X or more in that time with a small-capitalization asset. That's the purpose and point of my post.

 

[ilovelaura]

You just made my point. Doubling in a year is not an exponential return. You can get 100X or more in that time with a small-capitalization asset. That's the purpose and point of my post.

the risk is way higher. But I get your point now