Over one hundred and thirty billion USD. That is the current Market Capitalization for the greater cryptocurrency world right now as I write this, but what is Market Cap and why should I even care? Keep reading for a quick and simple explanation & some great resources.
The total Market Cap is basically the total amount of value invested in all cryptocurrencies. Gauging the amount of value of all cryptocurrencies is a hard thing to do, but the Market Cap formula is one easy way to accomplish this. Cryptocurrency Market Capitalization is calculated by multiplying the Price by the Circulating Supply.
"Market Cap = Price X Circulating Supply."
So when we talk about the "Total Market Cap" we are referring to the price of all cryptocurrencies multiplied by how many of each crypto is in circulation. Bitcoin was the first cryptocurrency and it started roughly in 2009. As you can see below as more coins were added and adoption increased so did the total market cap. Here is a graph of the total market cap of all cryptocurrencies since early 2013 to present:
As you can see 2017 as been a GREAT year for cryptocurrency! This graph is from one of my favorite sites (and many others!) CoinMarketCap.com and is where I go to stare blankly at my screen for hours at this stuff!
Why You Should Care
The total market cap has increased significantly since the beginning of the year with huge spikes the last few months. This corresponds with a flood of first time investors in cryptocurrency as it hits a more mainstream market. This is why you should care. When more and more investors are getting involved (especially big names like Fidelity) it creates more opportunity for growing your personal wealth! These major players are getting into the cryptocurrency games because they KNOW this is the future and they want a piece. Are you going to go after your piece?