How to Determine the True Value of a Cryptocurrency? TJBS #1!
We determine the true value of a cryptocurrency by how many of us are actually using it because users are what provide the value for all of the top companies and applications in the world. Cryptocurrencies with a high market cap and a small amount of users are the worst potential investments while those with many users and lesser valuation are the best opportunities to not only earn a return but also participate and build the community! Thank you @glitterfart for showing me the data I use for this at http://www.blocktivity.info/.
This is the first question I am answering live during episode #1 of The Jerry Banfield Show which I am abbreviating TJBS. Will we enjoy questions and answers together while making music during episode #1 of The Jerry Banfield Show because this simple format might help us interact best?
My live stream was at DLive
The replay is also available on YouTube below!
Thank you to Steem as seen at https://steemit.com/@jerrybanfield for giving me the chance to be here with you today and earn enough from my blog to work full time from home doing whatever is most helpful today!
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Music Studio!
I love music and the show takes place in my music studio! Listening to instrumental music like this is fun because the sounds stimulate the mind and at the same time provide a rest from our world of constant talking. Tomas George with digital music masters at http://digitalmusicmasters.com helped me discover this and gave me the information, confidence, and mentor I needed to produce music with no experience starting in 2017. Tomas recommended I listen to Deadmau5 who has become my teacher in making trance music that helps me relax, play, dance, and reconnect with my divinity when my soul feels lost in fear and future.
All of my music is Creative Commons Zero or CC0 meaning you are welcome to do anything with any song without any need to mention me. For example, you are welcome to play this in a live stream, as background music in a video, etc.
Love,
Jerry Banfield
My live stream is at DLive
Good stuff ! Thanks for posting
Quite fantastic
So does that mean Ripple coin which has high market cap with low users should be invested?
What's the bestcoin?
Please assist a novice
Your CC0 license is such a good idea; I wish more people would realize how giving to a community is so much more powerful than demanding payback. Payback usually comes on its own. 😃
Maybe it's his great way to make people listen his music!?
Well said @geke.
Truly concur with you, selfless giving really portrays the true patriots in a platform, and such people usually attain the zenith of their goal in shorter time.
The spirit of giving really works.
I like it a lot! that's why I follow you...I always find your posts refreshful and immaculately clean of the contrived eagerness of some Steemit advocates and honestly filled with genuine enthusiasm. I also appreciate the deeper, more open-minded and philosophical way you look at things and your passion for truth.
The number of sales and purchases can determine a cryptocurrency, together with the price of bitcoin
Hello @jerrybanfield, love your work! I'm trying to reach you with this comment...
I have done a proposal about Steem growth.
Would love to have some feedback from you and @budget.
I have project called GUIA DO STEEMIT (Steem Guide).
I'm really committed to this mission.
I would be so happy if you took some time to read my budget proposal post: https://steemit.com/budget/@rhavi/promoting-steemit-educational-videos-on-facebook-for-the-portuguese-speaking-community-budget-proposal
Hoping you will see this comment...
Cheers, with love <3
Rhavi
Love your content
wow the block'tivity website is really useful and steem in number 1 thanks for the link!
I always find your posts useful thanks for sharing
I know right :)
Absolutely agree. The rate of growth and addition of new users is the nest metric to discern the medium and long term value of a user-based asset; including even Bitcoins.
I posted about this using some math-based derivations in a paper some months ago part of which was summarized here:
https://steemit.com/bitcoin/@kenraphael/a-review-of-a-few-fundamental-metrices-that-drive-bitcoin-value-and-what-they-currently-indicate
@jerrybanfield I posted an educational piece here after a few newbies that got encouraged into crypto fell for the non-fundamental hype that passes for analysis these days. Would appreciate you take on it:
https://steemit.com/bitcoin/@kenraphael/the-2018-cryptocurrency-market-correction-has-shown-most-of-the-trading-analysis-on-social-media-ineffective-in-a-bear-market-a
Economic equilibrium, where supply and demand are balanced.
Currently crypto-currency markets are quite illiquid. This makes the price of bitcoin and other cryptos fluctuate a lot. The uncertainty around them does not help either. Regulation, technical challenges, reputational issues and other factors make the supply and demand unpredictable.
Based on what does the price go up or down? I would say it is based on people's expectations. If they expect the price of bitcoin to increase due to a utility increase over time (more merchants accept it, transaction volume grows, there is a larger ecosystem of developers building on top of it...) there will be a rise on demand, and assuming that the supply does not increase in the same proportion, the price will go up. On the contrary, if the utility decreases (mobile platforms block crypto apps, technical issues arise, governments ban them, exchange markets get shut down...) the demand will decrease, the supply will increase (more people willing to sell) and the price will go down.
In the long term their value will be determined by their utility (adoption by merchants and other users, significant advantages with respect to other forms of payment...), liquidity (exchange markets, interchangeability with other forms of value...) and trust (reputation, regulation, adoption by trusted institutions...).
Lately, it is very important to learn to estimate the true value of cryptocurrencies. The recent hype can make some of us invest in coins that don't have either any intrinsic value or even a medium-term growth potential. Hope that many rash investors learn this from @jerrybanfield before investing in the "hottest" coins :)