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RE: Valuing Cryptocurrencies Based on Competitive Advantage

in #steem6 years ago

Excellent Post!

I use a similar system in evaluating cryptocurrency: Instead of competitive advantage I use: Market Disruption & Transaction costs.

  • Bitcoin, an anonymous payment processor and speculative asset can be transferred from anywhere with access to the internet to anyone, who can wait as long as they like to "log in" and use it. Transaction fees =about= .01% of asset value.

If you think bitcoin has high fees, look up how much it costs to sell a house!

I feel as though people are looking for more reasons for Bitcoin to exist, but this utility is good enough. Payment processors are very valuable & The Bitcoin network has a very high hashrate, very secure and that itself is so important.

  • Ethereum - I definitely see the value in having an autonomous escrow or decentralized applications, I just don't see Ethereum as it. With so many new decentralized application virtual machine infrastructures hitting the scene EOS, NEO (without going on forever), how is Ethereum going to maintain its dominance? ETH has a very centralized model and that has been a source of contention in the community and dissent (ETC). I can easily see an exodus from Ethereum to a platform with features which automate the smart contract creation process.

  • Steem is the most interesting, because the utility of tokenized social media platforms has the most to offer to its users, the driving force of the growth, who are currently using Facebook, and being excluded from the reward pool.


All over the world, inefficiencies are costing people money. I believe the cryptocurrencies of tomorrow will be the crypto which solves the inefficiencies of today.

Thanks for your post @yabapmatt, I just discovered your work here and really appreciate it. Have a great day.

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