Having considered most of our discussions here.
Palcoin have been conceived and it shall be launched on the 7th of May 2016.
Here is the pre ann thread https://bitcointalk.org/index.php?topic=1462217.new#new
I promise to implement and maintain most of the things we discussed.
Thank you.
Topic: What makes a coin valuable? (Read 1707 times)
That's a highly philosophical question without a clear answer. Speculation, "scarcity", community ... all of that are components of value. But how they exactly work is unclear. If we had a clear answer, someone would have already created a perfectly stable coin.
My approach is the following:
- Basically all people using a cryptocoin form a community.
- Each community member decides if he wants to contribute something to this community. The simplest form is money - when you simply "buy" coins. Other contributions can be network security (mining), development, marketing, etc..
- If you make a sum of the contributions of all members, you have a base value of the cryptocurrency. (There were websites that did try to do this, but I don't know if they still exist.)
Now this base value must not be equal to the coin price, as already was pointed out. The main influence are future expectations.
That are questions like: Is there a chance for the coin to succeed? Does it have unique selling propositions which could drive forward adoption or are there dangerous competitors with clear advantages? Is interest actually growing or dwindling? Are there conflicts in the community that could affect success? (That later was probably the reason for the Bitcoin bear market of the last 3-4 months which has finished some days ago)
Future expectations can be short-term, mid-term and long-term oriented. While short-term expectations are mostly based on price (as the simplest metric, using technical analysys), for a long term outlook you should check development of all pillars of the cryptocurrency, involving features, development team, marketing, and commerce/service adoption.
My approach is the following:
- Basically all people using a cryptocoin form a community.
- Each community member decides if he wants to contribute something to this community. The simplest form is money - when you simply "buy" coins. Other contributions can be network security (mining), development, marketing, etc..
- If you make a sum of the contributions of all members, you have a base value of the cryptocurrency. (There were websites that did try to do this, but I don't know if they still exist.)
Now this base value must not be equal to the coin price, as already was pointed out. The main influence are future expectations.
That are questions like: Is there a chance for the coin to succeed? Does it have unique selling propositions which could drive forward adoption or are there dangerous competitors with clear advantages? Is interest actually growing or dwindling? Are there conflicts in the community that could affect success? (That later was probably the reason for the Bitcoin bear market of the last 3-4 months which has finished some days ago)
Future expectations can be short-term, mid-term and long-term oriented. While short-term expectations are mostly based on price (as the simplest metric, using technical analysys), for a long term outlook you should check development of all pillars of the cryptocurrency, involving features, development team, marketing, and commerce/service adoption.
99.9% of the altcoins (except the ones, which are already well established) are pretty much useless.
You must understand that technology is already out there, and we should focus on adoption, instead of adding few gimmicks here and there.
I can give you an example with the so called "anonymous coins", which promise you to keep your privacy.
Come on, do you think that any serious business could accept them as a way of payment?
Yes they can be accepted very good on darknet same as bitcoin was. Serious or not it is precious for some business You must understand that technology is already out there, and we should focus on adoption, instead of adding few gimmicks here and there.
I can give you an example with the so called "anonymous coins", which promise you to keep your privacy.
Come on, do you think that any serious business could accept them as a way of payment?
..Also if we look from standpoint of human rights , they are needed but people neglecting basic freedoms.. what makes a coin valuable?.
It's inherent or perceived utility. It's a mix combination of speculation and first/early adoption holders/supporters.
99.9% of the altcoins (except the ones, which are already well established) are pretty much useless.
You must understand that technology is already out there, and we should focus on adoption, instead of adding few gimmicks here and there.
I can give you an example with the so called "anonymous coins", which promise you to keep your privacy.
Come on, do you think that any serious business could accept them as a way of payment?
You must understand that technology is already out there, and we should focus on adoption, instead of adding few gimmicks here and there.
I can give you an example with the so called "anonymous coins", which promise you to keep your privacy.
Come on, do you think that any serious business could accept them as a way of payment?
Value of coin is directly proportional with strength of its community, so when community start hyping you can expect miracles. Everything is related to community, they are early adopters and they are first users. Value of coin will rise with rise of community and rise of number of new users - demand..
What makes demand? Probably possibility for making of big money. Promising good new technologies that have good potential. New good ideas..
What makes demand? Probably possibility for making of big money. Promising good new technologies that have good potential. New good ideas..
i believe all these things you said about the potential and good new technology can be true and effective, although i think in the altcoin market and at least about 95% of them the price is only being controlled by the hype.
some coin releases a new wallet the price rises, developer posts a comment the price rises, and alot more that sometimes doesn't even make sense
Value of coin is directly proportional with strength of its community, so when community start hyping you can expect miracles. Everything is related to community, they are early adopters and they are first users. Value of coin will rise with rise of community and rise of number of new users - demand..
What makes demand? Probably possibility for making of big money. Promising good new technologies that have good potential. New good ideas..
What makes demand? Probably possibility for making of big money. Promising good new technologies that have good potential. New good ideas..
must have wild inflation too, that's massive gains in MC.
no XCN is on the map, needs some cooling off too.
no XCN is on the map, needs some cooling off too.
XCN cryptonite with its mini-blockchain is a case study in the power of (no) hype .... a coin with a useful and needed innovation and it's dying in the toilet coz nobody knows about it much
I know nothing about CryptoNite, but seriously, are you joking?
In theory BitcoinNational's list. In reality hype and price manipulation... I mean marketing. Some of the technologically most advanced coins are dying while some well marketed useless craps are flying high.
XCN cryptonite with its mini-blockchain is a case study in the power of (no) hype .... a coin with a useful and needed innovation and it's dying in the toilet coz nobody knows about it much
A coin will be valuable if it's used a lot by a lot of people.
Or it became valuable if the price is high.
Or it became valuable if the price is high.
It was different back then but there are people who still manage the bitcoin network,but with so many altcoins competing the devs plays a crucial role I will not invest in a coin with a developer that seldom updates about his projects
Why? The developer is responsible for launching the coin and make sure that everything is working. He is not obliged to post updates every now and then, because here is where the community steps in. I, for example, am part of cryptocurrency called FAILCoin, and our lead developer didn't posted a single word in our thread, yet the coin is more than 2 years old. The developers (with few exceptions) who post frequently cannot be considered as serious. Their work is not to pet the "investors".
This is a new approach very different from what I experience all altcoins are the same but it's the dev who can market the coin and can offer more updates are the worth worth investing and I guess this is what traders and investors are looking for an altcoin..
It was different back then but there are people who still manage the bitcoin network,but with so many altcoins competing the devs plays a crucial role I will not invest in a coin with a developer that seldom updates about his projects
Why? The developer is responsible for launching the coin and make sure that everything is working. He is not obliged to post updates every now and then, because here is where the community steps in. I, for example, am part of cryptocurrency called FAILCoin, and our lead developer didn't posted a single word in our thread, yet the coin is more than 2 years old. The developers (with few exceptions) who post frequently cannot be considered as serious. Their work is not to pet the "investors".
there are a lot of things that can affect the price of an altcoin and make it "valuable" some have big effect and some of them have small effect.
off the top of my mind i can say the biggest effect comes from hype (you can see Ethereum's history which is 99% hype that caused the rise), also the coin has to have some initial factors like a good development team who are active and changing the coin for the better. also the coin should have some attractive (useful?) features too, in order to be able to rise at all.
but apart from that there is always manipulation, pump and dump that changes the price so much too.
off the top of my mind i can say the biggest effect comes from hype (you can see Ethereum's history which is 99% hype that caused the rise), also the coin has to have some initial factors like a good development team who are active and changing the coin for the better. also the coin should have some attractive (useful?) features too, in order to be able to rise at all.
but apart from that there is always manipulation, pump and dump that changes the price so much too.
Developers has nothing to do with the success of their coins. A coin does not need too much gimmicks in order to succeed. Many people think that features are very important, but that's not true, because of one simple reason - they are confusing for the general crowd. The key of success imho is simplicity. You have a lot more chance for better adoption if you keep things simple. People need to know the answers of these questions:
- what is this?
- how can I use it?
- why should I use it?
That's about it.
- what is this?
- how can I use it?
- why should I use it?
That's about it.
Now it changes everything from what I've known about crypto currency so if ever there's problem on the nodes or the block explorers or the nodes or any components of the coins who will fix that I think developers plays a crucial on the development of any coins,I am not a developer but you can always correct me..
We are assuming that we have a coin with working blockchain, but forget about that and answer this - what exactly Satoshi Nakamoto does for Bitcoin?
It was different back then but there are people who still manage the bitcoin network,but with so many altcoins competing the devs plays a crucial role I will not invest in a coin with a developer that seldom updates about his projects
Developers has nothing to do with the success of their coins. A coin does not need too much gimmicks in order to succeed. Many people think that features are very important, but that's not true, because of one simple reason - they are confusing for the general crowd. The key of success imho is simplicity. You have a lot more chance for better adoption if you keep things simple. People need to know the answers of these questions:
- what is this?
- how can I use it?
- why should I use it?
That's about it.
- what is this?
- how can I use it?
- why should I use it?
That's about it.
Now it changes everything from what I've known about crypto currency so if ever there's problem on the nodes or the block explorers or the nodes or any components of the coins who will fix that I think developers plays a crucial on the development of any coins,I am not a developer but you can always correct me..
spartak_t is on the money.
And if you are dependent on the dev for "explorers or the nodes" you are invested in the wrong coin.
Those areas are completely the responsibility of the community, if not at launch, then eventually, so the better the sooner.
Devs (re)create good code, it compiles for WinMacLx, and that's it. Have that shit in triplicate on a github. The dev can pull a Satoshi ... p000ff!
Very few of the gimmicky special features panned out to much more than techno babble hype.
Most just created buggy vaporware.
We the users of the coin make it valuable. Bitcoin was same in January 2009 as it is today. Then nobody wanted it, it was very cheap, pizza for 10k Btc. Now everybody wants it and it's booming.
Developers has nothing to do with the success of their coins. A coin does not need too much gimmicks in order to succeed. Many people think that features are very important, but that's not true, because of one simple reason - they are confusing for the general crowd. The key of success imho is simplicity. You have a lot more chance for better adoption if you keep things simple. People need to know the answers of these questions:
- what is this?
- how can I use it?
- why should I use it?
That's about it.
- what is this?
- how can I use it?
- why should I use it?
That's about it.
Now it changes everything from what I've known about crypto currency so if ever there's problem on the nodes or the block explorers or the nodes or any components of the coins who will fix that I think developers plays a crucial on the development of any coins,I am not a developer but you can always correct me..
We are assuming that we have a coin with working blockchain, but forget about that and answer this - what exactly Satoshi Nakamoto does for Bitcoin?
Developers has nothing to do with the success of their coins. A coin does not need too much gimmicks in order to succeed. Many people think that features are very important, but that's not true, because of one simple reason - they are confusing for the general crowd. The key of success imho is simplicity. You have a lot more chance for better adoption if you keep things simple. People need to know the answers of these questions:
- what is this?
- how can I use it?
- why should I use it?
That's about it.
- what is this?
- how can I use it?
- why should I use it?
That's about it.
Now it changes everything from what I've known about crypto currency so if ever there's problem on the nodes or the block explorers or the nodes or any components of the coins who will fix that I think developers plays a crucial on the development of any coins,I am not a developer but you can always correct me..
Everything is related to human greed. Hype is just weapon, they use the human weakness - whales are masterminds in this game. You can earn much money this way, and chances are pretty good, so that is why. There is no real value at all! 
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