I see a lot of people saying "This coin will reach $1 in 2025" "I'll only see when this coin reaches $1", but mathematically speaking, would it be possible?
The calculation is simple: Market Cap = Coin Price × Total in Circulation (Supply)
To predict whether a coin can reach $1, you need to check the total supply, if the coin has 420 trillion units in circulation, the Market Cap needed to reach $1 would be: $420 trillion, to put it in perspective, Bitcoin's Market Cap is currently around $1.92T. This means that this coin would need to be worth almost 220x more than Bitcoin today. Realistic? 🤔 Imagine the following situation:
Supply: 420T
Current value: $0.00002
Market Cap: $8.4 billion
This means that the Market Cap would need to grow from $8.4B to $420T, an increase of 50,000 times the current value. Or else 99.99% of the supply would be burned.
The question remains: Is there enough demand to justify this increase? Can the cryptocurrency market absorb so much capital in a single asset?
Before blindly believing in predictions or buying into the hype, do the math. Mathematics is a powerful ally in identifying what is viable and what is nothing more than a dream.
The calculation is simple: Market Cap = Coin Price × Total in Circulation (Supply)
To predict whether a coin can reach $1, you need to check the total supply, if the coin has 420 trillion units in circulation, the Market Cap needed to reach $1 would be: $420 trillion, to put it in perspective, Bitcoin's Market Cap is currently around $1.92T. This means that this coin would need to be worth almost 220x more than Bitcoin today. Realistic? 🤔 Imagine the following situation:
Supply: 420T
Current value: $0.00002
Market Cap: $8.4 billion
This means that the Market Cap would need to grow from $8.4B to $420T, an increase of 50,000 times the current value. Or else 99.99% of the supply would be burned.
The question remains: Is there enough demand to justify this increase? Can the cryptocurrency market absorb so much capital in a single asset?
Before blindly believing in predictions or buying into the hype, do the math. Mathematics is a powerful ally in identifying what is viable and what is nothing more than a dream.