Market cap</strong></a> is the total value of a crypto asset in the market. A fully diluted market cap, on the other hand, is the total value of a particular crypto asset, calculated under the assumption that <strong>all of the project's tokens have already been distributed.</strong></p>\n<p>It&rsquo;s determined by <strong>multiplying the current price of an asset by its max supply.</strong> The current market cap, on the other hand, is calculated by multiplying the current circulating supply by the current price of the asset.</p>\n<p>Keep in mind that the fully diluted market cap <strong>may not be the most accurate estimate of the asset&rsquo;s future price.</strong> This is the case because it disregards any potential price decreases, and assumes that the future market cap will rise in direct proportion to circulating supply.</p>\n<p>For instance, note that, occasionally, when the supply of the token increases, the price of the token may decrease if the supply is greater than its demand. This would result in excess supply, which could lead to <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-inflation/">inflation. Thus, traders should not rely solely on the fully diluted market cap while making decisions about their future investments.</p>","level":"easy","meta_title":"What is Fully Diluted Market Cap? Definition & Meaning | Crypto Wiki","meta_description":"Fully Diluted Market Cap meaning: Fully Diluted Market Cap - an approximate prediction of the asset’s market cap, assuming that all tokens are in circulation.","meta_keywords":null,"language":"en","created_at":"2022-08-12T13:35:02.000000Z","updated_at":"2022-08-12T13:52:54.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-fully-diluted-market-cap"},"prevSection":{"id":992,"original_id":null,"author_id":40,"translator_id":null,"title":"What is Fiscal Policy?","slug":"what-is-fiscal-policy","section":"F","keyword":"Fiscal Policy","status":"published","definition":"a method that is used by the authority to customize spending and tax levels.","content":"<p>Fiscal Policy is a government method of editing <strong>spending levels and tax rates of the people of the country</strong>. It enables them to supervise and, eventually, impact a country's economy by specifying how government money is acquired and spent.</p>\n<p>For instance, let&rsquo;s say that fiscal policy is the reduction of fees and authority spending. These actions are done in regard to increasing aggregate need alongside decreasing the reserves of the budget. Besides, the technique is founded on the concept that governments may impact macroeconomic performance by increasing or decreasing public spending and tax costs.</p>\n<p>Fiscal and monetary policies are used interchangeably. <strong>It&rsquo;s to ensure that the economy isn&rsquo;t volatile and even adjust its direction.</strong> Both of these policies can be employed in order to increase economic directories such as increasing employment rates. They can also influence the evolution of a country.</p>\n<p>To put things into perspective, aggregate demand, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-inflation/">inflation, consumption, and employment rates in a country's tax system and economy are affected by the authority.</p>\n<p>So, the government holds a lot of power, and this can have advantages. As an example, they can manage inflation, keep the value of money consistent, and even increase employment rates. But, without a doubt, this can have a detrimental impact as well. This is very true in nations with high levels of corruption.</p>\n<p>Most fiscal policies revolve around fees. Specifically, they impact how much money the government makes accessible to each section of the community. Taxes can also have an impact on how much money a person is prepared to spend. Speaking of which, there is an ongoing debate about the level of <strong>involvement</strong> the government should have in the economy. This is a question that might be hard to answer by the creators of the policy.</p>\n<p>Even though this is an extended issue, some economists and political analysts argue that some level of government intervention is required to maintain a healthy society.</p>","level":"medium","meta_title":"What is Fiscal Policy? Definition & Meaning | Crypto Wiki","meta_description":"Fiscal Policy meaning: Fiscal Policy - a method that is used by the authority to customize spending and tax levels.","meta_keywords":null,"language":"en","created_at":"2022-05-19T05:21:22.000000Z","updated_at":"2022-06-07T11:49:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-fiscal-policy"},"currentChapter":"F","currentSection":"what-is-formal-verification","chapterTitle":"F","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-formal-verification","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
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Crypto Terms: Letter F

What is Formal Verification?

Formal Verification MEANING:
Formal Verification - a way of validating the properties of the blockchain protocols and cryptographic algorithms by employing mathematical proofs.
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Let's find out Formal Verification meaning, definition in crypto, what is Formal Verification, and all other detailed facts.

Formal verification takes place when verifying certain features of blockchain mechanisms and cryptographic algorithms, by using mathematically valid proofs. In other words - checking the behavior of a system.

In contrast to manual security checks, formal verification evaluates the complete code and logically assures that your software only functions as planned.
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