Ricky Presents: Episode 2 - Gettin' Lernt with Ricky
Holy fuck boys, what is going on? Ricky here today to talk to you more about this hypnocurrency craze that is going on. Markets are fucked today, but I think it is a great time to buy up some coins you've had your eye on. You know what they say... the early bird gets worms, and there is no earlier than now. Because if you buy later you're not buying early, and if you don't buy early... you know what I mean. My brain gets fucked sometimes.
Fuckin' Bubbles behind me keeps saying I need to stay on track. He said people from all over the world will read this. How fucked is that?
Anyways, the word around the park today is Market Rationalization.
Bubbles: "Ricky, no, it's Market Capitalization."
Yeah that is what I said. So market capitalization. This word has been thrown around the park lately and I'd like to break this shit down with you all today. So basically market cap is the total market value of all outstanding coins of a company. It is the value of the company times how many workers there are or some shit.
Bubbles: "Ricky... that's not right... it is the amount of dollars (or fiat, currency in circulation issued by your government) times the total number of "coins (or tokens, etc.)" of the company.
Bubbles, fuck off, I'm trying to pave a point here. So you're trying to tell me that market capitalization is only about the price of a company?
Bubbles: "Yes. And you along with the rest of the Trailer Park should remember that the price isn't necessarily the value of the company. Don't forget that price is what you PAY for something while value is what you're able to extract from it. High price doesn't always mean great value.
Bubbles, what the fuck are you talking about?
Bubbles: "*Sigh.* Ricky, when you sell your dope clones to Corey and Trevor for $100, it doesn't mean the clones are worth $100. The same goes for when those two fuck-nerds sell it to Phil Collins for $50. It doesn't mean the clones are worth $50, either. That is simply the price you paid. The most important thing to remember is learn what they are worth. Only then will you understand the value of a coin/company and if it is over or under valued.
Bubbles, that is what I said. So putting it in smart people words, if I want to make a lot of fuckin' money I need to be buying undervalued coins issued by companies with a worth-while business goal and/or product? The basic principles of supply and command!
--
Before I leave I want you all to remember the famous words for Groucho Marx:
"Nothing can have value without being an object of utility."
--
Until next time, Ricky signin' off.