What is market cap?
Market capitalization (or market cap) is the total market worth of all of a company's shares, or all of the coins that have been mined in the case of Bitcoin or another cryptocurrency. The price of a single coin at any one time is multiplied by the total number of coins that have been mined to determine the market capitalization of cryptocurrency.
Market capitalization can be viewed as a basic indicator of an asset's likelihood for stability. (It's interesting that volatility continues in Bitcoin, the cryptocurrency with the largest market capitalization.) However, a cryptocurrency with a lot greater market size is probably a more solid investment than one with a much smaller market cap, much as a larger ship can safely navigate heavy weather. On the other hand, digital currencies with smaller market capitalizations are more prone to market fluctuations and may experience sharp rises or falls in value.
Note: Market caps for "circulating supply" and "fully diluted supply" may be included. The 18.5 million Bitcoin that have already been mined (also known as the "circulating supply") or the 21 million that will eventually be mined (also known as the "fully diluted supply") are the two numbers. Some observers may use the completely diluted amount to calculate market capitalization, while others will use the supply that is currently in circulation, depending on their methodology.
