Bitcoin Forum

From my little experience i have come to realize that some coin rise and fall and completely useless while some rise and soar higher and higher and this brought me to my question what makes a coin valuable?.
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I dont know if this is the right section to post this but i need contributions and probably we might have a better coins in future.

all kinds of things... manipulation mostly.

However, real organic growth and value is all to do with belief and faith in that coin.

I belief in the convincing faith in a coin which makes it to have good followers but what induce the faith?

I would like to say "the services", but unfortunately I think it is the hype who somebody manages to create around a coin. This does not normally last long though.

Yeah, services, i guess this have to do with what the coin have to offer the community and where it is accepted.
Do i get that right?

Agree with this. People flock at coins that are pumped to gain profit and not actually care for the development and the community behind a coin. Although there are some exceptions, for example Dogecoin, who has a lot of followers and faithful community members though the coin has been pumped a dumped really hard.

I agreed, any pumped coin shall eventually be dumped because what goes up comes down.
Make makes a coin to gain community attentions?

greedy speculation for altcoin, acceptance due to increase in usage for bitcoin

Greedy often lead to the creation of scam coins whose developer ran away after making some bucks and someone else takeover due to belief or conviction about the coin.
Naturally every good developer tends to increase the value of its coin gradually while increasing acceptance.

I can tell you exactly. First of all: price is not the same as value. Value is atributed to the fundamentals. When it comes to coins these atributes give it value:

-scarcity (low inflation - total number of coins does not matter, the rate of creation of new coins does)
-usefullness
-community backing
-hashrate / security of network
-longterm outlook

(also note innovation is only valuable when and only when it works correctly and is usefull, novelty in and of itself is not valuable)

price is made by liquidity aka supply/demand (speculation mainly at this stage)

protip: unobtanium  



aaand you're welcome  8)

Yep, I'd say that's about it with the altcoins.  With bitcoin the market is much more liquid and isn't manipulated as easily.  These coins are a store of value but there are so many of them that most are going to be useless for that purpose.

Me :P

I can make a coin valuable as can many others with BTC.

Like has been said it is mainly manipulation and sheeple who jump on thinking they are going to get astronomical returns.

(Rarely happens)

Take ETH there is nothing to it giving it the value it has, it is controlled by whales an hypes an not current tech but future speculation of possible tech.

The demand make a coin valuable, yes if people will have a good demand for a coin then the value of that increases with each passing day, also when the supply is reduced with having demand then the value boost up at that moment .

Thanks to everybody for their posts, i have been able to learn one or 2 things, i hope this might influence up coming coins.

-scarcity (low inflation)  check the numbers on ETH, LTC, BTC ... not scarce ;)
-usefullness ... what can i buy withit ... does it trade directly with other coins/products/services?
-community backing also quality of community how many Sr./Heros/Legends are in the ranks
-hashrate / security of network ... SHA256 BTC network being the best
-longterm outlook / how many exchanges is it listed on / internet presents
-age / how long has it been in the game / seen lots of coins priced is the $millions ... dust in the wind already
-fairness in distribution ... if it was an ICO ... run and run away quickly

aaand you're welcome ;)

The real factor how valueble a coin is, is how many people trust in the coin and use it. There could be a coin with the best tech available but if there are no people which using it then it has no real value. This is the key factor in my opinion.

An example: Dogecoin is just a funcoin with no unique feature and high inflation but it is popular and the value is stable on a high level. On the other hand, there is Qora. A coin with awesome tech. But it has almost no value because people do not use it and pobably do not believe in the coin.

All money of any kind has only one primary value. It is purchasing power. If a coin has noone who will accept it for goods and services, then the coin will have little value.

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.

It's brand and if the DEV is actually committed to making the chicken arise

The funding should be a factor to make the coin valuable. Bitcoin as far as i know was premined yet those mined coins weren't spent and I guess that just makes the coin valuable as well.
The people behind the coins can also help and also due to its use and functionality.

Many things contribute to the success of a coin but the main part is features once it has a lot of good features services and adoption and community support once it has all of this it will become valuable to the eyes of traders and investors,there should be a big investors to the coins

I never thought that situation from television will be mapped on the crypto world, where people investing on promises and fancy colored and designed announcements..Many good coins here are already few years old and don't have any attention, but majority of them deserve it..

I totally agree with you,some of them not majority are really into it to just make a quick bucks but there are few who made it mainstream but because they have devs who knows what majority of crypto coins holders are looking and on top of that they know to market their 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.

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! ::)

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? ;D

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.

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.  

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

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.

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..

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.

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?

https://i.imgur.com/rsBXNMw.png

must have wild inflation too, that's massive gains in MC.
no XCN is on the map, needs some cooling off too.

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..

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

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?

It's inherent or perceived utility. It's a mix combination of speculation and first/early adoption holders/supporters.        

Yes they can be accepted very good on darknet same as bitcoin was. Serious or not it is precious for some business  ;D..Also if we look from standpoint of human rights , they are needed but people neglecting basic freedoms..

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.

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.