Categorizing Blockchain projects
I am (still) in the process of realigning my crypto portfolio. While doing that I am thinking that I have to categorize the different projects/coins I have because the behavior and evaluation seems to me quite different.
I see three categories:
Pure currencies (e.g. BTC): Basically the coin is just a token for either "store of value" or "medium of exchange". The value of those projects should increase the more people bought into the project. Evaluation of a fair price is often done with the network effect "N square 2" - N being number of users involved. What needs to be considered is the token distribution model - inflation etc.
Profit shares (e.g. gnosis): Basically the coin entitles you to a share of profit. Evaluation like classic shares - price-earning ratio -all in perspective of growth and the token distribution model.
Utility token (e.g. steem, ethereum): The token is used within the project to give the token holder some project specific power. E.g. bandwidth/voting power (steem), gas for processing (ETH). Very individual how to evaluate a fair price. Token model needs to be considered as well.
Let me know your thoughts on those categories. Do you see different or more categories? How are you evaluating a fair price (fundamental)? I am looking forward to your answers.
Very interesting to divide it like that but I think it makes perfect sense to do so. Because if you look at the pure
Currencies these are getting more and more competition and it's a bit hard to stay at the top. This category is at the moment my least favorite, unless we are talking about locking up some profit in a coin that is at the top which is perhaps a bit more stable.
I think it's more interesting to look at the other categories - what can this coin actually do ? For me that means that I like coins such as Neo, where you get gas by hodling. Tenx where you get a piece of the profit from all transactions. Smartcash that allows inflation to be your friend and so forth.
Some just look at the name and not behind the actual technology. EOS is also on my radar because I think it has still far to go.
I guess having a mix of the different categories is the best move. But these days I want to find coins that are not just coins but that offer something more.
I agree it make sense to diversify in all categories.
What I am trying to find out is what is really a fair price for a coin. Being in a bubble (that is my assumption) that is hard to find out but will be rewarded if the bubble collapses. My gut feeling is that most of the "Porfit" share coins are very expensive. While currencies if they really are used in real life and not only for speculation are cheap in comparison where it can go. But that I still have to verify.
Yes right now speculation is such a big part of the price and that is actually quite scary. In the same time it bodes well for something like Steem that has already been launched for some time and that has proved that it works in real life. In this sense I think Steem can be considered undervalued of compared to most the other coins with higher market cap
?? Ethereum has many projects on top of it.To me Ethereum is like OS of the 90s...May be EOS and Waves are of the same type.Steem is different in the sense its purely a blogger play
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upvoted
good information thanks for sharing great post
utility tokens will go amazingly high we have seen with steem specially and eth from 9$ one year ago to today :D
Well done and your post if really good in contentwise, and keep sharing posts like this . Keep it up
Thanks for the info
Nice Categorizing of the various projects i liked it
This is a great idea and I hope you post your results, or the work in progress as you create it. Because so much has happened in just the past year and it has become so crowded, we need the language of the crypto-space to evolve in order to be more effective. There are so many technically brilliant people in the space, but that technical brilliance does not always lead to effective, nuanced communication. Thing like more accurate categories, descriptions of utility and more refined definitions will do a lot to clear up the muddied waters. Both for investing purposes and discussing the merits and actual utility of these technologies as they develop.
Again, great idea. Thanks for introducing the it here and please keep us informed.
Hi hypnopreneur
Thanks for the kind words. I agree the space needs to mature in regards to definition to be more efficient. Of course I keep you posted!
i love blockchain technology @famunger
Super intelligent post, thank you for taking the time to create and share. love to read you post.but these kind of posts do make it easier, followed and upvoted...resteem