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Admins, could you correct the headline to say “crypto currency website”?
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Investopedia should not be your source of truth. While you can get quality education for free on the internet in various subjects(math, CS, biology) - financial markets is not one of them. Market value is exactly what the parent asserted it is, and the source of truth for that is your bank. If you are long 500k shares of AAPL and the quote is $100 - your bank will not consider you to have $50mil liquid assets. They k…
AAPL 500k shares? Yeah, not correct. AAPL average 50 day daily volume is slightly less than 28 million. Sell Day 500k AAPL bid - 0.001 SHOW QTY 100 won't move a market at all.
It's facetious (and bad 'journalism') to claim $100B vanished. It was never there to begin with: market cap isn't something you can cash in on. It's merely the result of price multiplied by supply. If you owned a significant portion of all the coins in the world, and tried to sell them all at once, you wouldn't end up with number_of_coins * price, it would (realistically) be a smaller number given the market slippage…
>It's facetious (and bad 'journalism') to claim $100B vanished. It's certainly not bad journalism, this is how all sorts of assets are reported on. Market Cap isn't a perfect metric but it's pretty good and keeps us from saying things like "AMZN is down 50%" when they do a stock split. In the sense that yesterday if you summed up what all the individual holders saw when they checked their accounts you'd get $200b and…
CoinMarketCap is in a tough position here. I can obviously understand not wanting to list massive outliers in an average, but at the same time there isn't realistically a way for them to "safely" adjust which exchanges they include in the averages. No matter what, it's either going to cause big sudden jumps in either direction, or they can "smear" it across some time, which (in my opinion) would look really bad as it…
this is a very solved problem in financial markets: you source quotes from a set list of contributors, ditch a set number of the highs and lows and average rest, possibly weighted in some way, e.g trade volume.
It's facetious (and bad 'journalism') to claim $100B vanished. It was never there to begin with: market cap isn't something you can cash in on. It's merely the result of price multiplied by supply. If you owned a significant portion of all the coins in the world, and tried to sell them all at once, you wouldn't end up with number_of_coins * price, it would (realistically) be a smaller number given the market slippage…
Note that the same would happen if everybody started dumping their wealth in whatever form: shares, real estate, and fiat money, even hard bills. What we call value is just the promise that somebody, at some future moment, will be willing to exchange what we have for something else (food, goods, houses, or of course any other different store of value). If everybody is trying to get rid of something, the value of that something just drops to zero.
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When you are betting on Bitcoin or Ethereum, you are betting on the technology, developer community, ecosystem and the adoption. With Tron, there's hardly a product and Ripple while seems to have some successful pilots, is still far from realizing the dream of replacing the FIAT currency among banks.
>> When you are betting Full stop. You are trading or investing - if the word "betting" passes through your brain, stop now . The public surge of interest in crypto currencies is a redistribution of wealth from retail speculators to professional speculators. You aren't betting on the technology, developer community, ecosystem, or adoption anymore . At this point, you are betting you aren't the last one to the party.
I am betting that my new relationship with be futile and bring me happiness. Doesn't mean I went to see bookie about it.
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Wrong. https://www.investopedia.com/terms/m/marketvalue.asp Market value definition: > obtained by multiplying the number of its outstanding shares by the current share price The reality of selling has nothing to do with it. It's just a math equation.
How can a thing which never existed to begin with vanish? There wasn't $100B sitting around in a bank account waiting to be claimed, which then suddenly evaporated. Also investopedia isn't exactly a high quality source.
"Market capitalisation or market cap is the market value of a company's issued share capital – in other words. the number of shares multiplied by the current price of those shares on the stock market."
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From the title: > $100B in Market Value When the market price of an assets drops, it loses market value.
There are a bunch of websites that offer to value this or that website. I once plugged an old website of mine in there and it was well over $1M. I was like - please tell me who the buyer is, I'd sell right away. "Market value" doesn't mean squat if you've no buyer in front.
But, market value means the market price * total assets. So, market value is erased when market prices drop and created when they rise. How you interpret a ride or drop in market value is up to you.
It's just like saying my house was appraised at $300k. That doesn't mean you will get an offer at that price, but it's not accurate to say that the appraisal value isn't $300k unless you find a buyer at that price. The appraisal price and purchase price are separate.
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>There was irrational price rise in the last few weeks for certain cryptocurrencies(Ripple, Tron) and this is part of the correction. What makes their increase 'irrational'?
In Tron's (TRX) case, the project's whitepaper is plagiarized [0] from Filecoin's, and the CEO (Justin Sun) dumped 6 billion tokens [1] after pumping the price by announcing "partnerships" that turned out to be him hiring developers. TRX is the literal definition of a shitcoin, yet the price pumped 10x in less than 10 days. [0]: http://www.trustnodes.com/2018/01/08/trons-whitepaper-copied... [1]: https://www.reddit.c…
So a "shitcoin" with a 9B$ market cap? We really are living in a brave new world of financial disruption...
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Wrong. https://www.investopedia.com/terms/m/marketvalue.asp Market value definition: > obtained by multiplying the number of its outstanding shares by the current share price The reality of selling has nothing to do with it. It's just a math equation.
Investopedia should not be your source of truth. While you can get quality education for free on the internet in various subjects(math, CS, biology) - financial markets is not one of them. Market value is exactly what the parent asserted it is, and the source of truth for that is your bank. If you are long 500k shares of AAPL and the quote is $100 - your bank will not consider you to have $50mil liquid assets. They k…
So as crazy as it sounds $100B in market value can be erased by a drop in the market price of an asset. But don't confuse that with $100B actually being lost or investors realizing $100B in losses. But in any event the title of the article is accurate.