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P2P, MOE, CMC, CS, TS & MCAP EXPLAINED | CRYPTO JARGON #21

December 23, 2019


Welcome to Crypto Jargon, the series where I’m breaking down some of the most commonly used terms and acronyms in reference to cryptocurrencies and blockchain technology. In today’s episode I will look into the following terms and how they are used in market analysis on social media, forums and even in mainstream media articles. Let’s start with the most obvious one P2P it stands for Peer to Peer and for foreign English speakers it may not be so obvious but peer is just another word for a person, so the term literally means from person to person, indicating that a transaction or information is being transmitted directly from one person to another without the need or use of a third-party interference. This is what most cryptocurrency networks are referred to as being peer to peer, meaning that the users can interact with each other uninterrupted and unobserved by a third party. This of course, doesn’t include transactions on exchanges or cloud wallets, where the company who runs that service is in fact, the third party. But in their essence, cryptocurrencies offer the liberty to make direct peer to peer transactions, should one wish to do so. Moving on to the next one: MOE stands for medium of exchange. It’s kinda self-explanatory, this means that a certain digital asset has the qualities to be used as a medium of exchange, which is one of the qualities of money. Digital currencies, in fact, offer more than just monetary value, they are information – digital data that can transmit not only transactional data but any kind of digital data. Anyway, currently, they are mostly used as medium of exchange and store of value in the case of Bitcoin, for instance. Next on my list is CS this is the amount of cryptocurrency units (coins or tokens) that are already mined or issued and are currently circulating on the market. It does not include units that are yet to be mined or held or burnt something I explained in another episode of these series, you will find the link in the description box For Example: Bitcoin’s circulating supply is just under 18 million out of a total 21 million coins. So, this is what we mean by circulating supply This total by the way, 21 million coins is called Total Supply (TS) or Maximum Supply (MS) which for every cryptocurrency is different. For Litecoin, it is 84 million coins while for Ripple it’s 100 billion coins. Some coins are mineable so their total supply is distributed over a long period of time. and the last fraction of Bitcoin, for instance, will be mined in the distant future in 2140, when it comes to Ripple or any of the ERC20 tokens, they are pre-mined, so their supply can be distributed from the start, or in some cases periodically, in a few stages so that the market does not get oversaturated which is the case with Ripple. Next one on my list is Mcap which stands for Market Capitalization or market cap for short. This is not strictly a crypto term, it’s borrowed from the traditional markets like stocks for instance, where the market capitalization is calculated by multiplying a company’s shares outstanding by the current market price of one share of that company. For cryptocurrencies, it is calculated by multiplying the circulating supply of the cryptocurrency by the current price of an individual unit of that cryptocurrency and that makes the total value, the total market cap of that cryptocurrency. For example, let’s take bitcoin again here as an example we have the circulating supply is 17million seven hundred and twenty-eight thousand, nine hundred and fifty bitcoins and we’re going to multiply that by the latest price which is 8550 (usd) and that gives us this number which is one hundred and fifty-one billion five hundred and eighty-three million seven hundred sixty-three thousand five hundred twenty-six so this is currently the market capitalization of bitcoin and we could also find it here there’s a slight difference in the very last amount here because this website is not updated in the last few minutes. and I just estimated it according to the very latest price so, in a few minutes or I think it’s once an hour, this will be updated and then we will see a slightly different value. This market cap here is slightly higher than the amount that I’m getting and this is because the price has dropped in the last hour and it’s not been reflected in the estimate here. but I just estimated it according to the latest price which is slightly lower than it was an hour ago. In fact, it’s about 200 dollars lower Anyway, this is how we estimated the market cap it’s changing all the time because the circulating supply is changing – every 10 minutes we get another 12.5 bitcoins being mined. so, you know, every 10 minutes we get more and more bitcoins added to the circulating supply. On top of that, the price is changing every minute and sometimes it can drop by a few hundred dollars or it can go up by a few hundred dollars and that is all reflected at the market capitalization so this figure will be different every minute every hour, every day… And lastly, CMC is the abbreviation for CoinMarketCap the website I just used for the example of market cap estimate this is the database that most of the investors and traders of cryptocurrencies use,
to see quick statistics about the coins currently available to the public. Every respectable coin has to be listed on that database and you can see a lot of information there like the current price, its market cap, circulating supply, maximum supply, price change over the last 24hrs,
the volume traded, the exchanges that trade it, also the official website and social media links, the explorer where you can track the progress of certain transactions on that blockchain, wallets and much-much more information. There are many other sources
that provide these statistics and some of them have even more
detailed data such as onchainfx,
coincheckup,
cryptowatch or some can be more creative, like crypto bubbles and coin360 so I’ll drop links to these in the description box for you. Enjoying this content? Go check out Crypto Jargon: the eBook out now on Kindle it’s an Amazon bestseller and it’s the most up-to-date crypto dictionary with more than 700 terms, acronyms and trading slang related to cryptocurrencies and blockchain tech. just go to ojjordan.com/cryptojargon and grab your digital copy today.

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