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Title: Are alt-coins with over a billion coins a good investment? Post by: Edward50 on December 11, 2013, 01:20:58 AM I am talking coins like,
Android Tokens, InfiniteCoin, DodgeCoin I can't see how practical they can be with a billion coins in existence. Are they good investments? Title: Re: Are alt-coins with over a billion coins a good investment? Post by: antgrinder on December 11, 2013, 01:22:42 AM there is always risk involved. Its up to u
Title: Re: Are alt-coins with over a billion coins a good investment? Post by: hypostatization on December 11, 2013, 01:39:24 AM Check out coin market capitalization:
http://coinmarketcap.com/ (http://coinmarketcap.com/) It helps give the big picture. Neither individual coin value nor total count are useful metrics by themselves. Title: Re: Are alt-coins with over a billion coins a good investment? Post by: GameKyuubi on December 11, 2013, 01:40:34 AM On paper, the number of coins doesn't matter. Even IRL, it doesn't matter too much. What matters is how the coins are distributed over time, the mining algorithm, proof type, spending methods, blockchain uses, premine, and whether the dev is active.
Title: Re: Are alt-coins with over a billion coins a good investment? Post by: d5000 on December 11, 2013, 02:34:58 AM Let's see it from the other side:
Would a coin with only 1 unit would be a good investment? (There was one, "OneCoin") The only problem I see with very high or very low numbers of coins is a psychological one. From the "fundamentals" point of view it is more important how coins are distributed, if they were premined/instamined, and how the inflation model is designed. Title: Re: Are alt-coins with over a billion coins a good investment? Post by: Reece523 on December 11, 2013, 04:03:40 AM The number of coins doesn't really matter though you may want to pay attention to the frequency with which a given cryptocurrency is traded. You don't want to buy too much of a cryptocurrency which has historically had very low volume even if the price seems pretty good -- this is the only way of liquidating a large number of certain cryptocurrencies in a hurry, so it isn't really a deal. For BitBar, 100 bars hitting the market at one price is, effectively, a wall that probably won't be breached so you'd want to stay well below that with any purchases you make. For something like ColossusCoin, a wall would be many orders of magnitude larger.
Just be careful if you're investing in a lesser known altcoin and don't invest too much money until you get a feel for how difficult it is to sell. Focus on the number of litecoins or bitcoins (or fraction thereof) that your investment (and the investments of other traders) represents. Some cryptocurrencies like ColossusCoin may require you to wait for some time if you want to sell at the going rate because there is such a large number of sell orders which will take precedence over yours -- by the time those have sold, the market may have moved and it may no longer be possible to get that same rate (well, that probably wouldn't have been the case today but that is beside the point). All the Best! |