Market Capitalisation

Market Capitalisation; if you invest in the stock markets or if you have been around the cryptospace long enough you must have heard of the term. Now I would like to tell you about the term, what it means and why you should know what it means. Market capitalisation is the current value of an asset, its calculation is usually straight forward, market capitalisation is calculated by multiplying the circulating supply of an asset by its current price. By circulating, we mean assets that are currently available to the public, any asset that is locked up for staking or other network security functions is not included in the circulating supply and is hence not part of the market capitalisation. Let us do a simple example, say we have a cryptocurrency called coin x, now coin x has a circulating supply of 1,000,000 units and is currently valued at 1000$, the market capitalisation of that coin becomes 1,000,000 times 1,000 which is a billion dollars.