the "real" price is what people are willing to pay for it at any given point in time. So every price is real.
Its supply and DEMAND. supply you know. Demand you have to anticipate yourself.
Of course, but why it's not rare to see on altcoin's threads (which in some cases, are very innovative) people who say "Great ! But the selling price is too high !" "Too expensive !"
Hello crypto-land,
I'm wondering since few time how to calculate the true price of a coin. Does anyone knows how to do it ?
When I'm checking the total supply of few altcoins, on coinmarketcap, I see that the price can be very different between two altcoins with the same amount of total supply.
Of course, the "hype" does much here, but can we know when a price is overvalued or undervalued ? What about the market cap ?
Also, for the pre-sale such as IPO or ICO, can we know if the selling price is too much high or low ?
Thank you in advance for your help,
Regards
All cryptos including bitcoin are priced by one simple market dynamic;
http://en.wikipedia.org/wiki/Greater_fool_theoryas for IPOs or ICOs as they chose to call them here, most are illegal so any non zero amount is too much.
I heard about Greater Fool theory but I never expected that bitcoin's and altcoin's prices were calculated by it, but now you come to mention it, I think you're right.
+ Are you sure that IPOs and ICOs are illegal ? Why are you saying that ?
The "real" price can be estimated by a mining profitability calculator.
If you can mine a coin for less BTC than it's selling for, then go rent a rig at miningrigrentals.com or use your own computer.
If the coin is being dumped for less than it costs to mine it, then it's currently a good price to buy.
Coins cost electricity to mine, and that is their minimum price. When block rewards halve, and when more miners compete, the cost goes up because people have to spend more electricity to mine the same amount of coins. If they have to pay for more electricity to mine a coin, they have to sell the coin for more money.
There are multiple factors. First the cost to obtain/mine the coin. You can't expect it taking 10 cents to mine a coin, and the price of each coin being a dollar.
Also the total supply limits of what the final price would be.
Some coins also have a flexible funding. So if 10 btc is raised, and supply is 1000 coins, then price per coin becomes 1/100 BTC.
OK for PoW coins but what about PoS coins ?
