Lots of variables, volume is but one
At this point you are basically gambling
My guess is as good as yours...
Topic: Economically speaking is it better to buy coins with less volume? (Read 747 times)
January 10, 2014, 05:19:12 AM
It depends on a lot of things besides the overall money supply, you should also take into account whether the devs are active, there are coins I've seen that have had an extremely tiny supply that have fallen apart and are barely traded now because of classic internet drama, scams, pre-mining or a dev team that simply didn't know what they were doing.
These low volume coins may seem cheap now but you have to consider who's behind them otherwise you might make a much more costly mistake.
These low volume coins may seem cheap now but you have to consider who's behind them otherwise you might make a much more costly mistake.
January 09, 2014, 08:03:17 PM
When valuing in the price of an individual coin, you need to look at the total number of coins (along with other factors).
e.g.,
Assume two coins that are equal in terms of features etc....
One coin has a supply of 1 Billion and is priced at 0.06$.
The second coin has a supply of 1 Million and is priced at 5$.
The second coins is actually cheaper than the first one.
First coin total market cap = 60 Million
Second coin total market cap = 5 Million
NOTE: Ofcourse this assumes that both coins are equal in all aspects, in terms of features, market adoption etc...
e.g.,
Assume two coins that are equal in terms of features etc....
One coin has a supply of 1 Billion and is priced at 0.06$.
The second coin has a supply of 1 Million and is priced at 5$.
The second coins is actually cheaper than the first one.
First coin total market cap = 60 Million
Second coin total market cap = 5 Million
NOTE: Ofcourse this assumes that both coins are equal in all aspects, in terms of features, market adoption etc...
January 09, 2014, 01:10:38 AM
the rate of coin issuance, on the otherhand, is relevant. Well, it's relevant if the coin is relevant. Which none of them are.
January 09, 2014, 12:56:22 AM
The number of coins is arbitrary. For instance, you could say that bitcoin will have at most 2,100,000,000,000,000 satoshis.
January 08, 2014, 11:11:49 PM
I'm seeing a lot of altcoins pop up lately, a lot of them- at least to me- have the same problem, which is that the maximum number of coins is in the billions. Investment-wise, isn't it better to invest in coins with smaller maximum number of coins, especially if you don't have a lot to spend? I'm using "investment" loosely here. Thank you.
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