Thanks!
Hi DASH community.
I have good news. Have a look at the histogram on the left:
The vast majority of AltCoins have massively more total sell orders than buy orders, sometimes even
with a factor of 5 and more (so then the left, green column is 5 times smaller than the red column) .
I think that is one of the reasons why most of altcoin trading is so risky: The slightest panic - and a
price can fall bottomless. I guess, many coins do not care enough about creating demand; plus
-looking at the whole market- somehow their price is much too high (same example: 5 times too high).
In DASH however, the total buy orders volume is impressively larger than the total sell orders.
During the past 2 months, while developing, I often checked out several coins, to get a feeling
for our new indicator. With DASH, the situation had been ~balanced during the whole course of
these 2 months. And recently, I even see an inverted ratio - 1.65 time more total buy order volume
than total sell orders. In short: Congrats. Your whole DASH economy seems quite healthy ;-)
Disclaimer: This is not a buy suggestion! I am just talking about one -of many- viewpoints. And myself I am only mildly invested
in DASH (unfortunately ;-) ... some old coins from long ago. I reported this mainly due to tech fascination, and because you are a
notable exception, and because I want to read your own explanations ... for what we are seeing there, in this project (click preview).This is very encouraging thanks for the analysis
Very good information.
The analysis sould have a range from current price. It is meaningless order more than +100% high from currnet price.
Thanks for the input. I do understand your thinking. Apart from the question: "100% or 50% or 200%? Or 400%? Or 25%? What is the perfect range?" and the huge differences in volatility which would influence that -arbitrary- threshold ... it turns out that taking the whole data (where available, that is) seems even better.
Let me motivate the summing scheme:
Imagine what a
buy order means: I am locking my BTC into the order - I cannot spend it anymore for ice cream, or helicopters. Even if I hope to get DASH at a really low price - my order-locked BTC is not only showing my "price hope" - but it is also showing the absolute amount of real money that I had been willing to lock into orders.
Same for
sell orders: Transfering my DASH to an exchange is risky, I give up my property in exchange for an IOU. And I declare that I want to sell them. Might be at a really high price only - but I show my willingness to sell them, not using them to buy something, or fund projects, or save for my children - but by offering them in a sell order.
And as
both sides get totalled in the same way, we CAN actually compare them. Or rather: We DO compare them ;-)
My own scepticism got smashed when I did cross-comparisons of different coins. They do differ in this new WOB indicator, and they differ much. I suggest you start observing it over time, for 3 very different coins - and you might find out that it will help you to assess how "long-term realistic" the current price of a coin is, compared to our quotient of totals of the (most of the) biggest, available order books world-wide.
I am querying 30+ exchanges! With our current "bittrex bleutrade bter ccex exmo livecoin poloniex yobit" in BTC and 2 fiat currencies - am I sampling enough of
your field?
Anecdote: When I tried my simple base calculation for the first time, about 1.5 years ago, and only with the orderbooks of poloniex ... I was surprised to see that LTC stayed totally OB-balanced over a very long period of time - and with varying current prices. As if the total order book volumes ("the whole market"), and the current marketprice ("the day traders") are well-coupled - at least for those "relaxed systems" with high volume, and long past - like Litecoin. (Right now, the situation of LTC looks less rosy, actually. But the better is the enemy of the good, I guess.)
Back to DASH --> This is very encouraging thanks for the analysis
Dash is like a bottle of coke with a mentos in it...
The pressure is building and it'll explode sooner or later. The current ride up to $50m market cap has been built on relatively low daily volumes, most trading days have seen volumes in the $100k to $250k range, compare this to the crazy $1m to $5m volumes we saw during the run up to the ATH in 2014 and you'll see what i mean...
This would suggest that demand is already far outstripping supply for Dash, even at the low daily volumes of $250k, which is less than 0.5% of current available supply based on today's market cap of $53m.
If we see even a modest uptick in daily volumes to between the $500k to $1m range then I expect Dash to rise significantly in price and smash its previous ATH.
All IMHO and as always do your own research!
Walter
Thanks a lot. I had hoped for such explanations. And reflection in bull times is good too.
My own thoughts were that
* locking away large amounts of currency into masternodes ... is a clever form of "creating demand" for DASH.
* your much-celebrated system of "budget proposals" and "taxing" the mining ... is evolving into a vibrant ecosystem - that other coins are not able to get to as easily. Kudos.
I am interested to see which other knowledge our newbies & pros will be compiling collectively - about all of the most advanced & really successful currencies ... once our 8-steps system is complete. Read the whitepaper & medium blog if you want to. And simply start using the beta already. May it help your trading!
And thanks again for the input!
. Granted I rarely pay attention to coins that don't make it past a certain stage.
But this never happened and finally I had to rewrite/fix it myself, though visually it might look familiar.
