Golos: An undervalued gem comparable to STEEM

A lot has been said about Golos, but at the end of the day is it something that will challenge Steemit? Golos should not and will not cannibalize Steemit. In the economy we always see competitors co-existing in large markets.

Steemit and Golos are likely to co-exist as they serve very different markets. Drawing from history for an apt example, Russia has its own verison of Facebook known as VK, and as January 2017 had a dominant market position in Russia with 410 million accounts. This compares well with Facebook's userbase of 2 billion accounts, so Golos has achieved 20% of the userbase.

Keeping that ratio in mind, let's compare that to their respective current market capitalizations. As I'm typing this,

STEEM: $315M
GOLOS: $21M (about 7% of STEEM)

That's assuming STEEM is even able to become the largest of its kind in the world (the equivalent of a new age Facebook), while we can be relatively assured that GOLOS is far more likely to achieve market dominance in Russia given its focus on a singular community. Furthemore, the Russiancommunity is extremely strong and active, key to the success of any new blockchain application. Not many coins of such a low market capitalization have such a large community. Check out their Telegram group chat with over 1300 members (as of 25 Aug):

Their GitHub account has 1650 commits and 22 contributors (as of 25 Aug). That's a lot! Not bad for a coin trading at 7% of STEEM.

Compare that to Steemit which has 2068 commits and 30 contributors! (as of 25 Aug)

I strongly believe Golos will soon gain traction and should fundamentally be at least a double in price based on STEEM's valuation. Lastly, as an afterthought, Golos' circulating supply of coins is only half that of STEEM.

Disclosure: I am long Golos.