Originally Posted by Golden_Pigeon
First congrat for your profitable investment.
What would that mean for ETH to pass Bitcoin in market cap ? Sorry, i don't know much about those issues.
Market cap is just a total value of all the coins in circulation.
Price of 1 Coin x Number of Coins in circulation.
So you could have XCoin that has 10 coins in circulation at $5 per coin and Y Coin that has 5 coins in circulation at $10 per coin and they'd both be considered equal in terms of market cap (both are $50).
With respect to Ethereum and Bitcoin the numbers are - last I checked:
Bitcoin: $3000 per coin, 16 million bitcoins in circulation - $48 USD billion market cap.
Ethereum: $360 per ether, 92 million ether in circulation - $32 billion in market cap.
The reason why it's significant in this specific case is that people believe that Ether will overtake Bitcoin in terms of market cap. This means one of the variables has to change. Either the price of Bitcoin has to take a big dip which means it's overvalued or the price of Ether has to rise significantly which means it's undervalued.
If you believe Bitcoin will fall and Ethereum will rise and meet in the middle, the conservative target for Ether's price is about $440/ether. If it's currently trading at $360, that's about a 20% discount on the most conservative estimate of what it should be worth. If Bitcoin is going to stay at it's current price, Ether needs to be at $525 to equal it in market cap. This means at $360, you're getting a 31% discount on the future price of Ether.
The most likely scenario however is that Bitcoin continues to rise until August 1st but Ether outpaces its growth. This means that realistically, we could be seeing $600-700 Ether by the end of the summer.