Remember the Shiba Inu days, the birth of major memecoins where $1 can get you millions of a token, then some people would assume that they will hold it till the value of the token gets to $1 so they can be millionaires. That was a very funny era, lots of people were already projecting theirselves as millionaires before the millions came. Thanks to that era I was able to completely understand market cap and how token supply influences the value of a token over time.
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Bitcoin is worth this much because the supply is completely limited to 21 Million, this means that over 8 billion people in the world can only have access to 21 Million Bitcoins. We all know that limited valuable things are valuable because they are limited, not lots of people can access it and the people demanding for it are sometimes willing to pay more to own it. That is how the value of things go up and down. If the supply of bitcoin was way more than 21 Million, the value won’t be this high.
I wish I knew this when I thought I was going to make a lot of money from XRP five years ago. When I discovered BTC and ETH five years ago they were way above $100 so I decided to look for the next gem but cheaper and I found XRP on third place in the list of most valuable crypto based on market cap. Five years ago XRP was just a little bit above $1 or less can’t remember, but I fantasized that if I could get thousands of XRP when XRP gets to $1,000 I would be a millionaire. But then I was a crypto newbie and didn’t put token supply and market capitalization into consideration.
XRP has a token supply of 100 Billion, this means that if I am expecting the price of XRP to be $1,000 thé market cap is expected to be $100 Trillion, lol!!! Who is going to pump all that money on XRP? This can only be possible if they burn some of the supply. XRP all time high is $3.842, it will be a miracle if XRP crosses $100 without supply reduction.
Posted Using InLeo Alpha
