Topic: Where is the actual value of Altcoins coming from? - page 2. (Read 1040 times)

Its all the extra money in the world trying to find place to invest. Stocks are overvalued after last year so they dump all money into cryptocurrencies. Once stock market corrects itself and starts to suck money again, situation might revers a bit but for sure crypto is now established for sure. Its as good investment as any.

I think crypto has bright future allready since fiat is screwed because of banks and bad politics. Banks are constantly printing more fiat out of their asses while crypto has hardcoded limits. Once people will see that crypto keeps its value better they will dump fiat and start use crypto directly. At some point they might even want their salaries as crypto if fiat crashes hard.

Rothschild said "Give me control of a nation's money and I care not who makes it's laws". With crypto banks are finally going to loose that control. Thanks to decentralization no one can truly control money ever again.
Banks might issue their own crypto but people will not use it if its not limited and decentrilzied. There is no need even to store money to banks when crypto becomes common.

It's what's makes anything valuable. Supply and demand. Most coins have a limited supply, and if the demand is high enough, a single coin could become extreme valuable. Demand can somewhat directly translate to popularity.

It's always been mostly speculation but this year it has started to slowly turn into several projects actually having value. This ain't 2014 and the 20 awful shitcoin launches every day anymore. A lot of talented people are working really hard on their projects with proper backing in place. Things take time but patience has paid off big time for many. That being said, speculation is still a huge part of it.

Some of them have features that bitcoin doesn't have - see Ether, Monero etc. Some are used to move money because bitcoin fees are too high, and by definition this means buying and selling the alts as you move them about. And some of it is speculators piling in because they feel it's a cheap way to earn some bitcoin - buy some undiscovered alt, watch the price rise, sell for bitcoin.

It should really have nothing to do with value of the company unless the token actually represents ownership. In most cases, tokens are an asset that can generate revenue, so (in my opinion) the proper way to value a token is to look at the potential revenue (which seems almost impossible to do for most companies right now) and value the token based on a risk-adjusted yield on cost.

Think of a token like owning a taxi medallion in NYC. You can't legally drive a taxi unless you have a medallion, so the price of one fluctuates based on how much money one can earn you and the risk/volatility of those earnings relative to other investment options.

Before Uber, owning a medallion pretty much guaranteed consistent income, so an owner might be happy with a 5% yield for the risk. Uber has changed the market dramatically, so now owners might require a 10% yield because of the added risk.

To be more specific, let's say pre-Uber a medallion owner could expect $50k per year in income. The value of that medallion would be be $1 million ($50k / 5%). Let's say after Uber, an owner can only expect $35k per year, with less certainty. The value would now be $437,500 ($35k / 8%).

Of course, estimating revenue is hard for altcoins because they are so new, but it should get easier in time.

I think the market will transition to this approach in time, but right now altcoins are mostly just trading on pure speculation.

One last point - Similar to tokens, part of what gives a medallion its value is the fact there's a limited supply. Even the risk that more could be added would have an impact on value, which is why understanding hard caps and knowing what happens to unsold tokens is important.

it is just like you're asking what should be the next target price or what would be the future prices of those stated above. no one knows about it, and we don't have crystal balls to guess the prices or even we are not psychic to read other peoples mind, it is purely the market and if the trade is ongoing then the market of that specific coin is active, and besides once the dev of that project also announce something that is also a signal or can trigget the market, either up or down.

Most altcoins are constructed on the premise of being something unique, needed, revolutionary and better than every existing altcoin - and most of them are totally wrong about it.
Significant number of altcoin have no real life usage and what makes them somewhat valuable is people faith that someday altcoin X might be used by company Y etc.
Yet most of them are traded on one exchanges and price is shaped by news and rumours about the coin.

Answer is simple; supply and demand.
Project founders specify a price during ICO period. After that according to development of project demand increases or decreases. And the price also increases and decreases accordingly.

backing up a project with a real business/future value



Where does that future value come from though? Can you give an example?
What's the endgame here?

Alot of it is speculation, but some of it is backing up a project with a real business/future value, some of it also like litecoin, bitcoin and monero/zcash is purely for transferring money and that is not a small business

Nothing, pure speculative value.
Probably the easiest money ever in Internet history to earn, setup ICO and say the same bla bla bla how "revolutionary" is that

Simple question, probably a more difficult one to answer:

What makes Altcoins actually valuable?