Its a common mistake of people new to investing to focus on cheap coins and assume that if the price is low, then the coin is cheap. This is not the case, its the market value (known as market capitalisation or market cap) that is the more important figure to focus on.
The reason for this is that the number of coins in circulation (the supply) of each cryptocurrency can vary dramatically, so when you buy 100 say of a coin, the share of its supply that you own can differ by multiples of thousands or more.
Market Cap Tool
To illustrate this we have developed a simple tool that allows you to compare the value of a coin you are interested in to other popular coins and to explore how changes in the price of that coin would make its value compare
This tool is a quick sense check on the price of any coin. Pick a coin from the list and see how it compares to the valuation of other coins like BTC and ETH. Change the price and see if the valuation still makes sense relative to their value.
has a supply of 0 tokens, hence its market capitalisation is the price x 0. Change the price and see how things change.
How Big is Bitcoin?
We have compared coins to Bitcoin, but how does Bitcoin compare to other assets in the real world - and is there room for growth there?
The below chart shows how bitcoin compares to the value of gold and the total US dollar money supply. Bitcoin is often referred to as a digital gold, and if it really is to achieve that level of adoption it will potentially grow to a similar size as gold, or even surpass it, although this might happen as money shifts from gold to crypto so the BTC and Gold charts may meet half way.
Equally it is often discussed how cryptocurrencies might replace physical money. While crypto is global, you can see that even compared to just the USA, the value of Bitcoin as the largest crypto is nowhere near the level of US Dollars in circulation