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RE: The Coming Altcoin Exodus

in #bitcoin7 years ago (edited)

It's not a fair comparison at all, no. Obviously if it's a currency, then it needs to be large enough to support the $ volume of transactions done on the network (as opposed to being the accumulated size of fees on the network like Paypal). In addition, there are some expectations of future value. In stocks, we actually have a way to estimate future value. In cryptocurrencies, it is difficult to mathematically calculate them, but it is the same concept: You take the future perceived value and calculate present value with a discount rate. The discount rate increases the higher the risk is. In other words, with your example, the less likely it is they create a publishing economy (which when they have done nothing yet, is pretty low), the higher the discount rate is. The concept applies regardless of whether or not we can actually accurately estimate the inputs.

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