In one minute, I did my best to define and explain the concept of market capitalization. From stocks to bitcoin and other cryptocurrencies, I've tried to make it clear what the market cap does and doesn't tell us.
When analyzing stocks or a cryptocurrency such as bitcoin, the market cap represents an extremely interesting and useful indicator. However, the market capitalization has its limitations and understanding them is a must.
So... is the market cap a useful indicator?
Yes.
Does it tell us how much a company or cryptocurrency such as bitcoin is "worth" with laser precision?
Nope :)
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