/biz/ - Business & Finance

There were a lot of comments referring to Market Cap to my post yesterday. I think it’s an important thing to have a discussion about. I’m open to being wrong, but offer that this is uncharted territory so ask all to embrace hope.

Market Capitalization refers to the total dollar market value of a company's outstanding shares of stock. Commonly referred to as "market cap," it is calculated by multiplying the total number of a company's outstanding shares by the current market price of one share. Source: Investopedia

Many responded to my post yesterday with the belief the idea of a $1 (or more) LUNC is...overly optimistic. The reasoned argument is that because there are 6 Trillion LUNC in circulation, $1 LUNC is nuts because we start talking about more money than entire crypto space using market cap as the measure.

This is why definitions and terms matter - LUNC is a cryptocurrency, not a stock. There are a TON of similarities, but the two are not equal.

I offer that the following formula is a better measure of the value of LUNC:

(P * C * v) / x-t = R

(P) = the number of people that hold LUNC (C) = the amount of their currency exchanged to get to get all coins
(v) = a human value factor (v) (x-t) = Total number of LUNC people are able or willing to exchange at a specific point in time (x-t) (R) = realizable value of 1 LUNC

In this formula, (v) accounts for the irrational activity (or hope) that has to be addressed when valuing any currency.

To get LUNC to $1 (or any other number), the key is we need to increase the numerator of the equation I offer above, while keeping x-t at a relatively fixed level. I firmly believe that is possible.

Open to legitimate criticism or to be told specifically that I’m wrong.

To the moon, and Be Well!

This is fucking stupid.