Crypto cannot be valued to high because its adoption is just beginning, the take over and the public awareness is just starting.
Although there must be some projects that will inevitable fail, but the same happens with the stock market and no one says the stock market is
overvalued because some projects fail.
Crypto I believe is UNDERvalued, the value will continue to go up, and the takeover will be historic. Good times are coming.
I'm not sure if it's undervalued as of today. It might very well be valued correctly. Or all cryptos could be worth 1 trillion today..or 300 billion. Who knows what the correct valuation TODAY is. Often promises and hopes and dreams run ahead while the technology lags behind. But if we look at the fundamentals of cryptos, and in what ways it can change the world - it is grossly undervalued in a medium/long perspective. The same way tech-stocks were overvalued in 1999. People had high hopes, and sure enough..all the amazing tech eventually came..but it took longer. It took 10-15 years. Even though people dreamt of smartphones and amazing computer games, and all sorts of stuff built on the Internet..the anticipation pumped up the markets, only to see it deflate when it was clear that the tech couldn't keep up with the dreams.
A little bit of the same is going on with cryptos. So many projects which are still only on paper. Some will realize their potential and become huge, and even survive the many crashes and corretions that will come..others will die. MANY will die. Just pray you own a few of the ones that survives..and you're sitting on the next Nvidia, Facebook or Apple stock :)
Really liked your prospective , but the game is not done yet . We need a long-term comparison in order to get a wider picture.
So what will happen in the long term will cryptos succeed to survive in the future ?
Not quite no. But there are quite a few aunties that have bought some Bitcoin..so we're not as underground as we were a year ago. But I still firmly believe that we're not in any kind of potential bubble before a total market cap of 10-15 trillion. 20-25x from these levels.
Are you sure? Those are inflationary bubbles who have lost 95% of their purchasing power over the past few decades. And there are derivatives that are more than 100 times larger than the actual physical market..I think that would be just too confusing. What's great about cryptos is that they are finite like shares.
Yes, you are of course right about that. But fiat currencies are printed all the time, with no end in sight. And at least you can valuate a company and a crypto to a certain extent. But how do you really value a fiat currency?
Hm..they have inflationary beginnings, but end up becoming deflationary as they reach max supply? Most/a lot cryptos have fixed max supply like Bitcoin? Although it will take hundreds of years to reach the last one (if ever reached)
look at Steem, it's supply grows all the time. XRP and few others are kind of an exception as most cryptos are designed that way that the supply increases over time. This is how the transaction security costs are covered (eg paying miners). Steem is another example of inflationary currency, each steemit interaction generates new cryptos.
steem is somehow inflationary, but if you keep it in SP you are protected against it.
I have to strongly disagree with the rest though..most cryptos have a MAXIMUM supply, which means there won't be created any more coins. Bitcoin has it's famous 21 million, Litecoin 84 etc.
Most coins on CMC have circulating supply, total supply and MAX supply. There will never be created more coins than the MAX supply.
Ripple are not at all an exception..it's almost the opposite with its 100 billion coins in max supply.
I never realy went by maket cap in my trades as said its not realy a good indicator of anything in my opinion.
Sorry to be like that but you misspelled conclusion at the end of the post :)
You can't compare crypto with most of stocks. Crypto is a brand new tech withing a potential 15% Overall GDP of world economy. Maybe you can compare it with the Dot Com era.
I think its fairer to compare it to stocks, because most cryptos have utility. More so..in the traditional money market we have derivatives and inflation and so much fraud which makes it almost impossible to navigate.
One could possibly compare pure crypto CURRENCIES to gold and silver..but even in those markets there are derivatives. I'm not sure how much physical gold is traded every day?
There was the BitConnect scam ... they actually managed to inch themselves into the top-5 on coinmarketcap.com for a while, by overstating the amount of tokens existing.
I bought a little bit as it was tanking hoping that it might rebounce im glad just a littlle bit but i heard something about them doing a ico in which you can exchange the old scam coin for a new one . Not sure how that worked out been cut of from internet mist part of last month
I don't think theyre valued high enough!
Crypto cannot be valued to high because its adoption is just beginning, the take over and the public awareness is just starting.
Although there must be some projects that will inevitable fail, but the same happens with the stock market and no one says the stock market is
overvalued because some projects fail.
Crypto I believe is UNDERvalued, the value will continue to go up, and the takeover will be historic. Good times are coming.
I'm not sure if it's undervalued as of today. It might very well be valued correctly. Or all cryptos could be worth 1 trillion today..or 300 billion. Who knows what the correct valuation TODAY is. Often promises and hopes and dreams run ahead while the technology lags behind. But if we look at the fundamentals of cryptos, and in what ways it can change the world - it is grossly undervalued in a medium/long perspective. The same way tech-stocks were overvalued in 1999. People had high hopes, and sure enough..all the amazing tech eventually came..but it took longer. It took 10-15 years. Even though people dreamt of smartphones and amazing computer games, and all sorts of stuff built on the Internet..the anticipation pumped up the markets, only to see it deflate when it was clear that the tech couldn't keep up with the dreams.
A little bit of the same is going on with cryptos. So many projects which are still only on paper. Some will realize their potential and become huge, and even survive the many crashes and corretions that will come..others will die. MANY will die. Just pray you own a few of the ones that survives..and you're sitting on the next Nvidia, Facebook or Apple stock :)
Really liked your prospective , but the game is not done yet . We need a long-term comparison in order to get a wider picture.
So what will happen in the long term will cryptos succeed to survive in the future ?
To your last question I must answer "of course". :)
the potential is unrealised, we have not even hit mainstream adoption yet
Not quite no. But there are quite a few aunties that have bought some Bitcoin..so we're not as underground as we were a year ago. But I still firmly believe that we're not in any kind of potential bubble before a total market cap of 10-15 trillion. 20-25x from these levels.
Maybe we should rather compare crypto-currencies to fiat currencies rather than stock?
Are you sure? Those are inflationary bubbles who have lost 95% of their purchasing power over the past few decades. And there are derivatives that are more than 100 times larger than the actual physical market..I think that would be just too confusing. What's great about cryptos is that they are finite like shares.
Shares are not finite as they are being printed out whenever capital is needed. Also only few cryptos are not inflationary and have fixed max supply.
Yes, you are of course right about that. But fiat currencies are printed all the time, with no end in sight. And at least you can valuate a company and a crypto to a certain extent. But how do you really value a fiat currency?
Hm..they have inflationary beginnings, but end up becoming deflationary as they reach max supply? Most/a lot cryptos have fixed max supply like Bitcoin? Although it will take hundreds of years to reach the last one (if ever reached)
look at Steem, it's supply grows all the time. XRP and few others are kind of an exception as most cryptos are designed that way that the supply increases over time. This is how the transaction security costs are covered (eg paying miners). Steem is another example of inflationary currency, each steemit interaction generates new cryptos.
steem is somehow inflationary, but if you keep it in SP you are protected against it.
I have to strongly disagree with the rest though..most cryptos have a MAXIMUM supply, which means there won't be created any more coins. Bitcoin has it's famous 21 million, Litecoin 84 etc.
Most coins on CMC have circulating supply, total supply and MAX supply. There will never be created more coins than the MAX supply.
Ripple are not at all an exception..it's almost the opposite with its 100 billion coins in max supply.
Thanks for future upvote and talk :)
I finally got my voting powers restored :) I didn't forget!
Thanks BRUH! Keeping word. I like that :)
anyway, you'll get upvotes when my voting power recovers :) Good talk
I never realy went by maket cap in my trades as said its not realy a good indicator of anything in my opinion.
Sorry to be like that but you misspelled conclusion at the end of the post :)
I did! Thanks for noticing ;)
Interesting point about the turnover rate. I did not realize that it was so much higher for cryptos then stocks. Thanks for the info.
You can't compare crypto with most of stocks. Crypto is a brand new tech withing a potential 15% Overall GDP of world economy. Maybe you can compare it with the Dot Com era.
I think its fairer to compare it to stocks, because most cryptos have utility. More so..in the traditional money market we have derivatives and inflation and so much fraud which makes it almost impossible to navigate.
One could possibly compare pure crypto CURRENCIES to gold and silver..but even in those markets there are derivatives. I'm not sure how much physical gold is traded every day?
I think as of right now it is but enjoy the money for now. Once its regulated the percentages will be like stocks.
There was the BitConnect scam ... they actually managed to inch themselves into the top-5 on coinmarketcap.com for a while, by overstating the amount of tokens existing.
I bought a little bit as it was tanking hoping that it might rebounce im glad just a littlle bit but i heard something about them doing a ico in which you can exchange the old scam coin for a new one . Not sure how that worked out been cut of from internet mist part of last month