Title: Bitcoin vs Altcoins – projected Marketcap Post by: Chilwell on September 24, 2023, 08:36:46 AM Original Topic: Bitcoin vs. Altcoins – projected Marketcap (https://bitcointalk.org/index.php?topic=5419558.0)
Author:1miau From the point wey I dey reason this matter, e go dey necessary make we understand how to review market capitalisations of cryptocurrencies. Because current market capitalisations go only fit reflect partially if cryptocurrency dey suitable as good store of value for long term. Current market capitalisations go dey very misleading, particularly for Shitcoins - caution! Current market capitalization vs. projected market capitalization When market capitalisations dey consider, then between current market capitalisation and projected market capitalisation go come separate. Current market capitalisation E only dey among the coin wey never entered the circulating supply. Potential inflation by additionally issued coins is not taken into consideration here. Things wey dey very serious to know:
Make we keep am for our minds say when circulating market capitalisation is given because e go dey misleading, as e go only dey represent a temporary state of coins wey dey for circulation and possibly plenty of new coin go later come to existence too. E do dey more reliable to dey consider an adjusted market capitalisation, where we go dey always choose time in the future and look Watin go explain circulating supply and resulting market capitalisation go look like. = > Adjusted market capitalization = choosing time for future (for example 2050) and make we comparing how the projected circulating supply and the resulting market capitalisation go look like between two or more coins. Example Bitcoin: For example, e dey known say Bitcoin go have approximately 20,980,000 Bitcoin go dey circulation in 2050, wey at current prices of $20,000 go result in an adjusted market capitalisation of approximately $420,000,000,000. Wey we dey compared to current situation of a market capitalisation of approx. 382,800,000,000 USD (at 19,140,000 BTC), e will only be a difference of just under 10 percent. The way wey the number dey dey close to 0, no so e go dey store value. Practically, all other bitcoin competitors get higher significant numbers here. Example Polkadot: Na Polkadot be the highly inflationary altcoin wey nPoS considered (which is practically dPoS). According to current sources, Polkadot's inflation dey amounts to about 10% annually, wey dey depends on how much Polkadot is staked. But normally e dey around 10% annually. In addition, excess Polkadot from inflation go circulate back to Polkadot founders even with different amount of staked Polkadot, as well as confiscated Polkadot, wey can be used or burned by Polkadot developers. However, na the only small sources about Polkadot's inflation, since Polkadot's statements of most official sources dey limited to the first year or Polkadot go even completely deleted most previously available sources, like here: https://w3f-research.readthedocs.io/en/latest/polkadot/economics/1-token-economics.html#inflation-model. E no dey available anymore. ::) Which is definitely a very big red flag!!!! Plenty information only dey available on third-party sites anymore which dey analyzed Polkaot’s documents when dey still up, such as here: https://www.coinbase.com/de/cloud/discover/solutions/polkadot-token-economics. Currently, Polkadot get a circulating supply of approximately 1,150,000,000 Polkadot at price of $7.36 per Polkadot, which dey results in a current market capitalisation of approximately $8,464,000,000. Assuming say na 10% annual inflation, the amount of Polkadot go increase to an amount of about 16,500,000,000 Polkadot by 2050, wey be 12 times plenty compared to now. At current prices of $7.36 per Polkadot, e will mean an adjusted market capitalisation of approximately $120,000,000,000, which go be worrisome 1400 percent above today's market capitalisation. Make this one be a reminder: Bitcoin na only just under 10 percent here. Anyone wey knows about markets go only conclude say the price per Polkadot go reduce well well by 2050. Considering the same market capitalisation in 2022 vs. 2050, the price per Polkadot go have to reduce from $7.36 today to $0.51 (!) in 2050. Conclusion: Polkadot na em be inflationary Shitcoin with large quantities of Polkadot Coins wey coming into circulation in the future will go to rich stakers... The price per Polkadot Coin go come down well well when looking at Polkadot's adjusted market capitalisation (for example 2050). Summary Finally, e can be said for solid coins, such as Bitcoin, current market capitalisation and adjusted market capitalisation dey very close. For inflationary Shitcoins, current market capitalisation and adjusted market capitalisation dey far apart. Predictability of projected market capitalisations Predictability of the adjusted market capitalisation means E fit dey possible for us make we know the amount for a certain cryptocurrency wey dey in circulation go be known in the future. We go need the number of coins wey dey in order to be able to classify a certain market capitalisation in the future. If no body fit talk am, how many coins dey for circulation for up to 20 years, then that cryptocurrency dey dangerous, this one alone fit make people run away from this cryptocurrency. Because Altcoin developers don't already know why dey no talk am such important information. ;) If predictability of the projected market capitalisation no dey, therefore you dey buy the cat in a bag. My article lesson : analyzing the long-term assessment of a cryptocurrency as a store of value – by evaluating market capitalisation – and if the Altcoin fit match market leader Bitcoin. Title: Re: Bitcoin vs Altcoins – projected Marketcap Post by: 1miau on September 30, 2023, 11:20:01 PM I dey really happy as Chilwell don translate my post for their local board. The topic dey very very important and I go like make everyone read am and learn from am. Because plenty Altcoins get secret tactics wey dem dey use do fraud and deceive buyers. Highly inflational Altcoins, like Polkadot, dey very very dangerous because the way wey the thing dey expand no be here, like I point am out for my article.
When I dey examine Altcoin, plenty things dey well well wey we need to check am. Inflation na the only one koko wey dey but na em be the very important one. Dey don advised say make we dey look closely, Watin go happen to like Polkadot. Such coins go massively lose value over time. Make we dey put am for mind :) Title: Re: Bitcoin vs Altcoins – projected Marketcap Post by: Odohu on October 01, 2023, 07:23:22 AM I dey really happy as Chilwell don translate my post for their local board. The topic dey very very important and I go like make everyone read am and learn from am. Because plenty Altcoins get secret tactics wey dem dey use do fraud and deceive buyers. Highly inflational Altcoins, like Polkadot, dey very very dangerous because the way wey the thing dey expand no be here, like I point am out for my article. E come dey look like say you sabi our pidgin pass plenty people for Naija. I really dey feel your flow and if you ask me, e don reach when we go sama you one ogbonge chieftancy title because na person wey don chop Naija swallow fit vibrate in Niaja flow like this. When I dey examine Altcoin, plenty things dey well well wey we need to check am. Inflation na the only one koko wey dey but na em be the very important one. Dey don advised say make we dey look closely, Watin go happen to like Polkadot. Such coins go massively lose value over time. Make we dey put am for mind :) I don take time read this your story wey dem carry come our board, e really make sense die. As e be say Naija don really pick up for Bitcoin pass as e be before, I believe say this kind knowledge dey very important for people so them go know how to take follow their investment portfolio. This your update done already open my to see wetin dey sup with come crypto wey I been dey comot cap for! I believe say you go don hear say Naija no dey carry last... so as the next bull market dey come so, we mount gidigbam untop crypto and I dey sure say everywhere go soft next year onward. Once again, thank you for the kind contribution wey I don see as you dey do for the forum. Title: Re: Bitcoin vs Altcoins – projected Marketcap Post by: Huppercase on October 03, 2023, 06:12:01 PM I dey really happy as Chilwell don translate my post for their local board. The topic dey very very important and I go like make everyone read am and learn from am. Because plenty Altcoins get secret tactics wey dem dey use do fraud and deceive buyers. Highly inflational Altcoins, like Polkadot, dey very very dangerous because the way wey the thing dey expand no be here, like I point am out for my article. When I dey examine Altcoin, plenty things dey well well wey we need to check am. Inflation na the only one koko wey dey but na em be the very important one. Dey don advised say make we dey look closely, Watin go happen to like Polkadot. Such coins go massively lose value over time. Make we dey put am for mind :) My brother, you dy amaze me. You no get corn for that your side? E go good to chop for this raining season ;D The way you dy talk this naija pigin be like make I put Kolanut for your mouth because the way you package this pigin straight die. But I'm thinking, how you take sabi write pigin like this? |