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Title: Economically speaking is it better to buy coins with less volume? Post by: matriculator on January 09, 2014, 04:11:49 AM I'm seeing a lot of altcoins pop up lately, a lot of them- at least to me- have the same problem, which is that the maximum number of coins is in the billions. Investment-wise, isn't it better to invest in coins with smaller maximum number of coins, especially if you don't have a lot to spend? I'm using "investment" loosely here. Thank you.
Title: Re: Economically speaking is it better to buy coins with less volume? Post by: odolvlobo on January 09, 2014, 05:56:22 AM The number of coins is arbitrary. For instance, you could say that bitcoin will have at most 2,100,000,000,000,000 satoshis.
Title: Re: Economically speaking is it better to buy coins with less volume? Post by: aminorex on January 09, 2014, 06:10:38 AM the rate of coin issuance, on the otherhand, is relevant. Well, it's relevant if the coin is relevant. Which none of them are.
Title: Re: Economically speaking is it better to buy coins with less volume? Post by: kdrop22 on January 10, 2014, 01:03:17 AM When valuing in the price of an individual coin, you need to look at the total number of coins (along with other factors).
e.g., Assume two coins that are equal in terms of features etc.... One coin has a supply of 1 Billion and is priced at 0.06$. The second coin has a supply of 1 Million and is priced at 5$. The second coins is actually cheaper than the first one. First coin total market cap = 60 Million Second coin total market cap = 5 Million NOTE: Ofcourse this assumes that both coins are equal in all aspects, in terms of features, market adoption etc... Title: Re: Economically speaking is it better to buy coins with less volume? Post by: Lethn on January 10, 2014, 10:19:12 AM It depends on a lot of things besides the overall money supply, you should also take into account whether the devs are active, there are coins I've seen that have had an extremely tiny supply that have fallen apart and are barely traded now because of classic internet drama, scams, pre-mining or a dev team that simply didn't know what they were doing.
These low volume coins may seem cheap now but you have to consider who's behind them otherwise you might make a much more costly mistake. Title: Re: Economically speaking is it better to buy coins with less volume? Post by: Sindelar1938 on January 10, 2014, 04:06:28 PM Lots of variables, volume is but one
At this point you are basically gambling My guess is as good as yours... |