Quote:
Originally Posted by jimmyb23
Noob question here. Should a coin's price matter to the investor? IOTA is only at $4.50 compared to LTC at $150. What does this mean? Is it better if you can get more coins? Why is IOTA's price so low compared to LTC? How is it some alt-coins are in the $1000 and some are barely a few cents?
Quote:
Originally Posted by TheMVP
What matters is the combination of price, circulating supply and max supply (and of course, the fundamentals of the coin itself).
IOTA has a supply of almost 3 billion, compared to only 54 million LTC.
Or, to put it easier - just look at
market cap
As of this post, IOTA is at a 12.2B cap and LTC is at an 8.9B cap. So IOTA is valued at roughly 40% higher that LTC.
Coins like IOTA and Ripple have a lot more coins out there, so that's why the price of the individual coins is so small despite them having large market caps. There's no fundamental difference between having a $10B market cap with 10B coins valued at $1 a piece vs having a $10B cap with 1B coins valued at $10 a piece. Both are the same thing.
Market cap is useful IMO for gauging the risk/reward for certain alt coins. For example right now IOTA is at $4.4 which may seem like a sweet "deal" compared to $470 per a single Ethereum. But if you look at market caps, The market cap for ETH is only about 4x higher than IOTA right now. So if ETH held it's value at $470 and IOTA pumped 4x to ~$17 and chance, IOTA would have a higher cap and thus be viewed as a more valuable commodity than ETH.
Last edited by beansroast01; 12-11-2017 at 06:22 AM.