Crypto Econ. 101 - Lesson 2 - part 3 - final. (Market cap isn’t made of foil)
Now that we understand what money is, what inflation does, and how much 1 BTC is worth, it’s time to focus on something simple yet often overlooked: how the market cap of a coin defines its price. Everything in this universe operates on supply and demand. Even galaxies follow this principle: what isn’t useful is pushed away by gravity. Things need to serve a purpose to continue existing; otherwise, they vanish. A perfect example is body hair. Have you noticed people losing body hair over time? That’s evolution happening right before your eyes. We no longer need thick chest hair for survival, so it’s fading away. I frequently come across price predictions from so-called “famous specialists” and everyday believers. It’s not uncommon to hear people claim that Bitcoin will hit $1,000,000, but is that even possible? Like stocks, cryptocurrencies are tied to their market capitalization. Bitcoin currently has around 19.5 million tokens in circulation. For #BTC to reach $100,000, its market cap would need to grow to $1.95 trillion USD—almost double its current size. To achieve this, Bitcoin would need to regain the market dominance it’s lost to coins like Ethereum and Binance Coin (BNB). And that gets increasingly difficult as new players, such as #Solana and #XRP, continue to emerge. Speaking of #XRP, it’s another frequent target for wild price predictions. Some claim #XRP could hit $1,000. But let’s break it down. Unlike Bitcoin’s 19.5 million tokens, XRP has a circulating supply of 53 billion tokens. This sheer abundance naturally reduces its value compared to Bitcoin. For XRP to reach $1,000, its market cap would have to balloon to $53 trillion USD. To put that into perspective: • The world’s GDP in 2023 is $105 trillion USD. • The U.S. national debt is around $33 trillion USD. • Apple, one of the most valuable companies on Earth, has a market cap of only $2.7 trillion USD. • The entire U.S. stock market is valued at approximately $45 trillion USD. As you can see, it’s virtually impossible—at least within natural economic limits—for coins to achieve such astronomical prices. There simply isn’t enough wealth in the world to support these valuations. So the next time someone throws around bold price predictions, ask them, “Where the heck is all that money supposed to come from, Mr. Guru?” Understanding how market cap works should be enough to keep you out of meme coins. These are often schemes designed to take your money. When you see price predictions for meme coins, remember: they are all lies. Meme coins have no inherent value or real use. There’s no reason smart money would flow into a meme coin unless the goal is to take money from retail investors chasing the dream of easy profits. The same logic applies to “play-to-earn” games. In order to pay you, the money must come from somewhere. You need to ask yourself: “If I put my money into this game, someone else will profit from my investment. So for me to profit, new people must keep joining. Isn’t that exactly how pyramid schemes operate?” Let’s take a look at $NEIRO : • Unrealistic Returns: The promised returns don’t make sense. With no real utility, the coin has no intrinsic value. • Ponzi-Like Structure: For some people to profit, others have to buy in. If no new buyers come, the whole thing collapses. • Lack of Transparency: There is no available information on who is behind #NEIRO—no team, no administration, and no clarity on how the investments are managed. • Withdrawal Issues: There are already reports of people being unable to withdraw their money. • No Regulation: #NEIRO operates without any regulatory oversight, leaving investors exposed to significant risk. • Aggressive Marketing: They push a sense of urgency—“buy now or miss out on huge returns.” This is typical of schemes on the verge of collapse. Some early investors may profit, but they are used as bait to lure new buyers. If they don’t cash out quickly, they will lose too. In our next article, we’ll dive into a topic you’re sure to find intriguing: crypto market manipulation. I’ll explain how whales and institutional investors manipulate the market to cheat you out of your money. Don’t miss it—be sure to follow and share my posts. By building a more informed community, we can foster greater stability and trustworthiness in the crypto space.
It’s sad how people think of politicians as friends. THEY ARE THE ENEMY. Everything bad on your life comes from the government. You think #trump is gonna make you a millionaire because you voted for him, because you both hate Biden? No bro, he is not your friend. The $TRUMP family has been fracking the little guy for generations. They will take every penny you have if you let. This coin is just a sample of a rug pull. They inflated the price by adding liquidity one day before the coin be listed on #binance the. They cashed MILLIONS out leaving “investors” with huge losses, then they moved the money for coins with actual usability.
And guess what? The next election you gonna vote for him again.
You are what you invest on. You invest on memes? You are a joke.
#xrp will keep going up The reason for its current oscillation is futures. Ever since the installation of futures trading on #crypto , coins can’t go up 200% in a day, because #futures is how exchanges make LOTS of money liquidating your investments. So it will go a little up, a little down… but $XRP is CRYPTO'S SECOND COMING. It will be much stronger than $BTC ever did.
I’ve been telling you this for the last 6 months: buy, close the app, wait.
Are you worried if you should sell your #xrp because the price is high? Do you feel anxiety because you don't know what to do? Here is what I found out after 7 years on crypto: CLOSE THE APP AND GO LIVE YOUR LIFE. To make money, be happy and anxiety free: Patience is key.
Aways do you own research. I’m sure you gonna get to the same realization I have.
Now everybody that bought future longs gonna be liquidated. Don’t sell your #xrp it will keep going up. DONT BE SCARED! HOLD LIKE IF YOU WERE HOLDING THERMOPYLAE!
Yes, $XRP is again at 2.85 It’s not near the top. But it’s very close to the bottom. Don’t wait for it to reach $5 and regret. I’ve been telling you this since it was 0.54 LISTEN DO NOT TRADE. JUST BUY.
Have you seen news about #Ripple moving lots of #xrp? It happens because Ripple sells xrp reserves to big players, like banks or other institutional investors. Selling cheaper brings them already profiting, this action brings stability and long term holders, it helps sustain the market. This is gonna happen a lot. Get used to it.
The market falls every time you buy, because you are fixed on the idea of instant profit. You buy now and you expect it to go instantly to one million.
That’s how you lose money. Don’t sell your coins. Ever.