I had my friend Tucker come up to me and say
“I have about 60 doge, which are valued at around 20 cents…don’t really care if I lose it all but hey in 40 years it may turn in to something. It could be a 1000 bucks for all I know”
It won’t be something let alone a thousand bucks Tucker…now you must die for cheating on those poor high schoolers and for your flawed logic.
(Insert John Tucker’s photo)
Unfortunately Tucker would of been better off using those 12 dollars buying a box of popcorn and a half pack of bunch q crunch for his girl. Here’s what people seem to forget when evaluating crypto, a stock, a business, or anything in this post Adam Smith nation.
Market Capitalization (Market Cap)
Market Cap - a proposed value of a stock or a business. This value usually includes the price of speculation.
For example, pretend Amazon is priced at 2000 dollars a share. If there are 100,000 shares in the company of Amazon the market cap would be 200 million dollars.
In this same example let’s pretend Amazon may only have a revenue of 2 million dollars for this year.
Speculation of it continue to increase in value over time is what causes the stock price to increase. The ratio of the revenue vs the market cap is what we call
Price to Earnings
These definitions are crucial in being able to “speculate” an investment on a company.
Yours Truly,
-Champagnepatel