Topic: Coins aren't stock...or am I missing something? (Read 405 times)

I think you missed my point.  Even the best coin will start near the bottom.  It may be cheap still but is gold or diamond...not shit.

Yeah but we were talking about utility not how much money you can make with shit coins. In the bull run, everything had high returns, you don't have to be a genius to make money in a bull market, sure shit coins had big spikes but look where they are now, virtually dead. If you are talking purely about trading and speculation, you can surely use any coin but for a real long term investment, only a few coins will be worth it and I'm talking about 15-20, max right now.

99% percent may be a bit of an exaggeration, but I think most would be hard pressed to argue against the fact a large majority have no utility or even intent on utility . So, why should the price ever rise for an Altcoin that has no utility? It shouldn't as far as I'm concerned. Hence, why it looks like to me that people are treating altcoins like stock.

Obviously speculation is the reason any coin with no utility would rise, but I can't understand how widespread speculation is in crypto....it baffles me, which is why I created the post in the first place. I haven't read every white paper, but the rampant speculation made me think I was missing something.

While I agree on most of your points, don't forget that most of the top coins, started near the bottom of the list.

Actually, the best opportunities (highest return) may be among those at the bottom of the list...but yeah, you need to learn how to carefully navigate and avoid the countless "shit" down there. 

Not a ton, though. Page 200+ of cmc is full of absolute shit coins, even page 1 is filled with non sense coins that have less than 1m in volume and are literal copies of other coins or straight up forks. Like litecoin, which is a very famous alt coin but it's really nothing, it's just a copy of bitcoin, it really offers nothing else. Most coins are still pretty garbage, give it a few more years before real companies jump in.

Why do people continue to act as if an Altcoin is akin to buying stock in a company? The future of blockchain tech is extremely bright and will in all likelihood revolutionize many different industries. However, 99% of the Altcoins have no utility and will never have a utility. Yet, people hype, and buy some of these coins to the point they have a market cap in the hundreds of millions, if not billions.

It's appears to me that people are treating Altcoins like stock? Despite how promising a blockchain's premise is, the Altcoin associate with that specific blockchain, does not give someone ownership or right to dividends. The Altcoin has no intent on utility and has simply been used to raise funds like an IPO.

For example Ripple, 3rd largest crypto with a market cap of $19b. Ripple is a great idea and a perfect example of how Blockhain can revolutionize an industry. Many big name banks around the world have signed up to use Ripple's blockchain, which has clearly helped propel XRP to such a huge market cap. Except Ripple's blockchain doesn't require the banks to use XRP and they can simply use Fiat currencies. Furthermore, the banks have said they have no interests in using XRP. The fact Ripples blockchain can facilitate fiat currency, pretty much renders XRP useless.https://www.bloomberg.com/news/articles/2018-01-25/ripple-wants-xrp-to-be-bitcoin-for-banks-if-only-the-banks-wanted-it

Owning XRP does not mean you own a piece of Ripple and the huge potential of their blockchain. XRP doesn't to mean you will receive a dividend, but people have bought XRP and pushed is valuation to an astronomical value like it is stock in Ripple. I just don't get it.

I don't mean to pick on XRP, but it's value makes it an easy target. Almost every other Altcoin appears to have an even less promising future then XRP when it comes to their utility.

Perhaps I'm missing something though......

There are tons of alt coins with utility. OCN has been integrated into oBike giving 40m users a chance to use crypto and the ecosystem along with it. Many of these alt coins don't have utility, look at all the privacy coins especially... However, many coins are also based on speculation and people speculate that some of these coins will have tons of utility in the future. Like ADA, it's an excellent project, but doesn't have a product yet.

Why do people continue to act as if an Altcoin is akin to buying stock in a company? The future of blockchain tech is extremely bright and will in all likelihood revolutionize many different industries. However, 99% of the Altcoins have no utility and will never have a utility. Yet, people hype, and buy some of these coins to the point they have a market cap in the hundreds of millions, if not billions.

It's appears to me that people are treating Altcoins like stock? Despite how promising a blockchain's premise is, the Altcoin associate with that specific blockchain, does not give someone ownership or right to dividends. The Altcoin has no intent on utility and has simply been used to raise funds like an IPO.

For example Ripple, 3rd largest crypto with a market cap of $19b. Ripple is a great idea and a perfect example of how Blockhain can revolutionize an industry. Many big name banks around the world have signed up to use Ripple's blockchain, which has clearly helped propel XRP to such a huge market cap. Except Ripple's blockchain doesn't require the banks to use XRP and they can simply use Fiat currencies. Furthermore, the banks have said they have no interests in using XRP. The fact Ripples blockchain can facilitate fiat currency, pretty much renders XRP useless.https://www.bloomberg.com/news/articles/2018-01-25/ripple-wants-xrp-to-be-bitcoin-for-banks-if-only-the-banks-wanted-it

Owning XRP does not mean you own a piece of Ripple and the huge potential of their blockchain. XRP doesn't to mean you will receive a dividend, but people have bought XRP and pushed is valuation to an astronomical value like it is stock in Ripple. I just don't get it.

I don't mean to pick on XRP, but it's value makes it an easy target. Almost every other Altcoin appears to have an even less promising future then XRP when it comes to their utility.

Perhaps I'm missing something though......

Why do people continue to act as if an Altcoin is akin to buying stock in a company?

It is true because since created Altcoin created like a stock or gold but has a volatile value the same thing with bitcoin, which is now being a crowd so the topic of conversation in the internet universe.

You are right. It is hard to explain to someone what cryptocurrencies are so I would just make stock as an example. I would state that cryptocurrencies are just stocks wherein you would be able to buy and sell them and they can be use to pay for goods and services too that's why they are better than stocks. I am not saying that when they bought a coin, they would be part owners of the company but they would just be owning one of their assets. It is more of the concept rather than what the actual use of stock is. You can either buy and sell cryptocurrencies, fiat currencies or stocks because all of them have the same concept when it comes to trading.

Neither are normal currencies (forex) and everyone trades them like stocks. Buying a currency gives you ownership over that currency just like buying euros to exchange them for dollars later on. It's really the same concept.