Interesting Article About Undervalued Coins

Cygnify

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Quote from: dogechode on January 28, 2014, 12:42:25 AM

This concept doesn't make sense to me. You don't need "new money" for the price to stay the same. You know what determines the price? What people buy and sell it for. Bid/Ask. If no one traded dogecoin for a day, why would the price change? It shouldn't, as far as I can tell. It's like trying to value a baseball card... it isn't worth what it says it is worth in some book, or what Joe Dipshit says it is worth - it is worth whatever someone is willing to pay for it. Period.

Basically this article is saying how much the respective currency is devalued daily - this is another way to look at it.

dogechode

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This concept doesn't make sense to me. You don't need "new money" for the price to stay the same. You know what determines the price? What people buy and sell it for. Bid/Ask. If no one traded dogecoin for a day, why would the price change? It shouldn't, as far as I can tell. It's like trying to value a baseball card... it isn't worth what it says it is worth in some book, or what Joe Dipshit says it is worth - it is worth whatever someone is willing to pay for it. Period.

cryptohunter

legendary

Activity: 2100

Merit: 1167

MY RED TRUST LEFT BY SCUMBAGS - READ MY SIG

how many blocks until doge rewards drop again? i really like doge long term. I have sold half but keeping half for a long time.

hvezdasmrti

sr. member

Activity: 797

Merit: 251

Dont be ridiculous, at NXT there is a potential supply of 80 percent coins which still werent sold to sheeps.

And the whole article is totally wrong.

Compare a shitcoin and bitcoin. Shitcoin has daily supply 1M coins and there are only 10M coins in distribution yet. BTC has daily supply 3600 coins with many millios in circulation. 1 shitcoin costs 1 satoshi, 1 bitcoin cost 10M satoshi.

Which one has more expensive daily supply? Bitcoin? Of course, because the whole shitcoin distribution is valued by 1 penny.

Sell all your bitcoins and hurry up to buy 1M shitcoins.

Futurecoin

newbie

Activity: 29

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It's true, this is exactly why NXT coin descendants are superior, with supply a limited amount, there is no inflation!

minermob

newbie

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Quote from: PinkPotatos on January 27, 2014, 09:29:43 PM

Its a really good article.

+1

TheCloser

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Activity: 98

Merit: 10

I'm going against the grain on this one. This article is poorly written because it is based on partial truths. At the end of the day a coins value is maintained by the relationship of the total coins mined per day versus the overall increase of network hash rates. If we look at this using pure mathematics, the volume of btc and ltc mined per day can be traded against the total volume of all other cryptocurrencies combined. Therefore, if ltc and btc ever hit the deck all other cryptos come down with it because there is nothing left to hedge your alt currency against.

usahero

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Activity: 434

Merit: 250

Quote from: scottii on January 27, 2014, 09:18:26 PM

Yeah probably, It's a good article.

Anyways, yes maintenance cost is just like overhead towards a business. Too much overhead, mean not much profit.

I wonder what the maintenance cost for BTC is?

2.5-3 M$ , depending on which price you count.

Which doesn't mean that there is 2.5-3M$ invested into every day bitcoin to "maintain" the price.

Oztwinpeaks

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Considering the great community it has, Devcoin really does seem to have substantial upside with this taken into account also.

Zzzack

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Merit: 100

Quote from: cozk on January 27, 2014, 09:36:50 PM

LTC is a successful coin.

LTC is right after doge (considered like shit by the article) in term of maintenance cost.

So what do i need to conclude ? Maintenance cost is one among many factors and its relevance is highly questionnable due to the fact that LTC maintenance cost is super high and is also the most successful Scrypt coin....

One of many factors, yes.

But you realize what maintenance cost is, right? Its the new supply coins.

The reason why LTC is able to have such a high maintenance cost is because there is such high demand that = the new supply coins = maintenance cost. BTC is even higher than Doge, but it seems reasonable to think that demand will maintain its 3 million $ a day costs whereas it is less likely Doge can keep demand high enough to continue to outpace LTC.

cozk

hero member

Activity: 812

Merit: 500

LTC is a successful coin.

LTC is right after doge (considered like shit by the article) in term of maintenance cost.

So what do i need to conclude ? Maintenance cost is one among many factors and its relevance is highly questionnable due to the fact that LTC maintenance cost is super high and is also the most successful Scrypt coin....

PinkPotatos

full member

Activity: 126

Merit: 100

Girls dont crypto?

Its a really good article.

Zzzack

full member

Activity: 168

Merit: 100

Quote from: scottii on January 27, 2014, 09:18:26 PM

Yeah probably, It's a good article.

Anyways, yes maintenance cost is just like overhead towards a business. Too much overhead, mean not much profit.

I wonder what the maintenance cost for BTC is?

3 Million or so. So 3x more than Doge...and its worth so much more.

scottii

hero member

Activity: 804

Merit: 501

Yeah probably, It's a good article.

Anyways, yes maintenance cost is just like overhead towards a business. Too much overhead, mean not much profit.

I wonder what the maintenance cost for BTC is?

BitCoinPokerBro

hero member

Activity: 826

Merit: 1000

Someone else posted this exact link in another thread not even 5 min ago

Zzzack

full member

Activity: 168

Merit: 100

Great article! Inspired by a thread on this site too

What it says:

Maintenance cost is the amount of NEW money needed per day so that the price of a coin doesn't fall. Lower costs = more stable at a particular price (at least, less likely to go down).

QRK has the lowest maintenance cost relative to the size of its market cap ~~ 930$ a day : 19 million $ market cap
Zeta has one of the lowest maintenance costs ~~ 230$ a day : 3 million $ market cap
Devcoin has one of the lowest maintenance costs ~~ 450$ a day : 3.5 million $ market cap

Dogecoin is scary - as noted in the comments by a dogehead - needs so much $ per day it isn't a stable investment ~~ 1.1 million NEW $ a day or else it will drop in price.

^^I just put money into Zeta this

scottii

hero member

Activity: 804

Merit: 501

Thought I'd share this with everyone.

http://cryptosource.org/good-buys-and-coins-to-avoid-how-daily-coin-maintenance-costs-should-factor-into-your-investment-decisions/#comment-182

Topic: Interesting Article About Undervalued Coins (Read 896 times)