Comparing the value of different projects

[rekter 8129]

7 hours ago, DennisChannels said:

I'm totally agree with the value of the coins: most of times, the value is not defined or understood, and it's just a matter of demand. But still, to be honest, when I use the terms "cheap or expensive", it's always related to the current price: that means, if BTC, suddenly goes under 5.000$ I will say "BitCoin is cheap now, it's a good moment to buy" and if it's over 100.000$ per unit, I will say its price is expensive at this moment, so better not to buy". 

 

Maybe my usage of the language in financial terms isn't inaccurate, I would like to improve that. I, also, tend to compare projects and coins in terms of more/less useful and cheaper/more expensive, I guess because the natural trend of relativizing and compare to our own personal economy and wealth. A project can be really useful and have a cheap price at a time (because the current price makes no justice to its real value - so it's undervalued), to expose an example.

Yeah, naturally, but this is what i am talking about. Words are tricky in many ways as they can mean several different things even with same context. Maybe my financial terms ain't accurate either. When we speak about value, people can compare it to value that they give to something. Fundamentals that are generally valued but they are hard to calculate, or compare with each other.

 

Marketcap is the fastest way do do this, and while people are speaking of unit prices, it's just practical and faster way to calculate how much usdt worth we have it in our pockets.

 

But when we are comparing the value to other coins or stocks we can't use one full unit price to compare. Tesla stock is worth $433,95 right now but it's still valued much more in market cap then bitcoin, if bitcoin would have same marketcap valuation as tesla (around 404,36B ), bitcoin would be worth $19255, that would make Bitcoin as expensive project as Tesla currently is.

7 hours ago, DennisChannels said:

So I'll try to implement that suggestion: considering the supply of the coin in circulation. This is about inflation, right?

I personally try to include inflation to my calculations by eyeballing the issuance rate of new coins. Because it affects the future value, but i lack math skills to give you any specific formula on that.

 

Marketcap value however is only counted about coins in circulation, because it's only used to measure current value. It overlooks max supply or inflation rate. Even though they are important for the future of the coin.

[Ruslannoh4i 34]

Your elaboration on the right way to calculate the real value in coins makes all very clear, however:

 

 

As somebody mentioned - I also tend to make an overall evaluation about coins based on their technological advancement - the reason for that being that in the long-term - it may be the single factor that will prove that coin survives at all. 

 

 

Some coins in their infancy have such a strong technology behind them - yet still not given the recognition they deserve.

 

 

In the long run the demand for them may well beat the demand for any super strong (as considered today) and super high-in-value coin.

 

 

One of such coins is PRIZM.

[emirojose4311 176]

Hay algunos proyectos que tienen mucho para nosotros en el futuro pero hay que investigar muy bien para saber cuáles serán esos buenos negocios para ver cuál vale más para nosotros.

[david51 44]

thanks for this helpful information. project should be evaluated based on their marketcap not just on the price of coin or token.

[TimopheyKa 3900]

This is the right idea! Also, do not forget that the coin can change in price. Now the topic of TWT coin is very relevant. Because it used to be very cheap. And now, its price has soared to such heights that it was hard to dream of! And it's so amazing, it's so cool! Sorry I missed the moment 😞

[hasaan 289]

According to my opinions the price of  the coins and the project is different from each others. The main key factor is that the if the coins price drops rapidly then the the project will fall that's not true. One of the most important things is that the project should be more potential. 

[rekter 8129]

On 10/10/2020 at 11:14 PM, alexjobs said:

What a good explanation, friend.

Although I do not know, I think that although it is not a figure that we can look at 100%, it does provide a lot of help, in the years that I have been observing cryptocurrencies.

I think it is easier for a coin to go from $ 0.001 to $ 0.01, that is, a 1000% increase in its value.

And it is more difficult for an expensive coin to go from $ 10,000 to $ 100,000.

This is just my opinion based on my experience, I have seen many projects that go from being worth pennies to even exceed the dollar, on the other hand the projects that are expensive, I have seen that they do not rise so drastically, they have more moderate increases.

I understand how it can seem like that but this is not an opinion, this is a mathematical tool for calcucating stock or coin values.

 

Reason why you don't often see coins that are priced $10k going to $100k is because we happen to have have way succesful low supply coins. In low cap coins on the other hand 10x growth isn't unusual, no matter what their price are. They are just easier to pump.

 

If XRP (currently priced at $0,255) had a marketcap of ETH right now, it would be valued as $0.95 per coin

 

Compared to if YFI  (currently priced at $15,467.56) had a marketcap of ETH right now, it would be valued as $1,438,435.38 per token.

 

This is just math and supply. When you are figuring out the value of the project, you are counting the value of all circulating coins in it. Having single full coin value is for other practical reasons.)

[wassim19 645]

It is a good topic and important for every novice and new trader to understand that the strength of a currency is not related to its price, but to the extent of its strength in the market, its projects, its brands and its rank among currencies

[Afaqahmad 1075]

I loved this support a ton since it is wealthy in the essential clarification and explanation that everybody needs. Concerning me, I generally like to utilize monetary standards in light of the fact that the images are undependable and their undertakings might be deceitful.

I loved this support a ton since it is wealthy in the essential clarification and explanation that everybody needs. Concerning me, I generally like to utilize monetary standards in light of the fact that the images are undependable and their undertakings might be deceitful.

[Sarahden111 1231]

First of all, I do not think that the comparison should be based on the basis. There are successful projects and failed projects, and each of them has indications. God is the team based on each of them and their interaction with investors and answering inquiries And then comes the white paper, the mechanism of distribution and inclusion, the total amount of the currency, and the most important exaggeration by the team in the success of the proposed project. I see it as an indicator of negativity.

[Smallingcane012 344]

When comparing project different, one can look at the necessary procedures that had been taking throughout the project such as skills been taken and ways of response of a researcher.

[Dark_Sky 8489]

On 4/11/2020 at 1:03 AM, rianpedia said:

We cannot trust the diversity of digital currency symbols, because usually the token / coin project is usually dead. then it's better to avoid things that aren't clear yet.

That's real and dead coins will only cause losses especially to those who invested on it that's why I highly recommend to choose those coins which show a good performance in the market to avoid losses just like btc, eth and xrp. 

[sarahmoses202020 251]

I have seen a lot of coins that have launched with good prices but because of small volumes the price drops along the way and it becomes worthless. When we take a look at ripple, it dose t have high price but the market cap makes it price to stay as it is and probably have small rises 

[Roop 1108]

Yes. Projects are not defined by its value. Some projects may be good and still have low price but some projects may be bad and still have high price. The valueof coin doesnot define the success and failure of the project.

[komtak 584]

the fee of cryptocurrencies is specially determined by the supply and demand for this foreign money, so it's far herbal for the brand new cryptocurrencies to be of low rate, as it has no longer won enough recognition for human beings to begin buying and selling and investing them and consequently increase their value.

[Chief executive officer band 681]

I'm sorry? i imagine that every new currency has a miniature set a price and contained by a number of months its suit bigger cost they indicated for eternity power and weakness of little and sizeable currency and in half a shake a being trading worth is good. 

[rekter 8129]

41 minutes ago, Chief executive officer band said:

I'm sorry? i imagine that every new currency has a miniature set a price and contained by a number of months its suit bigger cost they indicated for eternity power and weakness of little and sizeable currency and in half a shake a being trading worth is good. 

You have to elaborate that, because right now i don't have a clue what you are talking about. And i have read that sentence multiple times. What have you been trading?

[MahimaMariam 919]

Thank you so much my friend for sharing this valuable information with us. As we all know that most of the projects has been misunderstood by its values. But we should know that a strong project will be stable for longer as it is not affected by the values.

[Noghran 0]

I never knew this information before, my friend.
 Thank you for this clarification!
It is very logical, in fact, the availability of the currency and its quantity in the market is an important factor in detecting  its value!

[Quickbee 26]

Thank you for explaining the value of a coin in detail and in a precise manner. The value of a coin is expensive or cheap relatively and not by the rate itself.

[Billy Johnson 54]

Thank you sir for this information.  It is really helpfull for us. By this post we didn't know the value of coins but also know this, that  there some other coins altcoin etc. And nothing is cheap or less unless we decide it too. So thanks to you again for this post!!.

[Ludmila Castro 1153]

You have made a very useful post with a very clear explanation. I personally only trade with known currencies that I know how they work

[alaarami 103]

Very important information where the price of the currency is evaluated through the quantity of demand and supply, if the demand for the currency is high, or if the supply quantity on it is large, the currency is at a low price, as there are many and varied currencies that can be used. We have to follow the market and technical analysis

[Emiway 842]

I concur with you nowadays numerous individuals are contrasting huge digital money and little digital money a few days back one of my companion revealed to me that dogecoin will beat bitcoin how I can tell that since he is new in digital currency

[Dadoo 219]

That we compare the strength of currencies is not by comparing their prices, but by the amount of liquidity in them and the rate of increase in this liquidity in the market and the extent of the work of those in charge of developing it.