Alt Coins - where does their value come from?

[dutchtrader1980]

Bitcoin and simular coins for payments, I understand.

But for other coins, I can see the why the technology is useful, but how do the coins/tokens benefit of this?
For example Ripple, I see the value of the technology, so assuming all banks at some stage will use them. How is XRP benefitting of this?

Another example Golem, understand the technology of a global super computer. But how will the GNT benefit of global usage? Am sure I am missing something, thanks a lot for helping me out!

[alani123]

Bitcoin and simular coins for payments, I understand.

But for other coins, I can see the why the technology is useful, but how do the coins/tokens benefit of this?
For example Ripple, I see the value of the technology, so assuming all banks at some stage will use them. How is XRP benefitting of this?

Another example Golem, understand the technology of a global super computer. But how will the GNT benefit of global usage? Am sure I am missing something, thanks a lot for helping me out!

Speculation is the leading cause of the price rise in altcoins. Even coins like Ethereum haven't proved themselves yet but the crypto economy moves around speculation rampantly.

[dutchtrader1980]

Speculation is the leading cause of the price rise in altcoins. Even coins like Ethereum haven't proved themselves yet but the crypto economy moves around speculation rampantly.

In understand speculation is part of the game. But speculation of what, there must be a reason why people believe these coins become valuable? i.e. does it mean without XRP no Ripple technology? Or am I investing in part of the Ripple technology and therefore will receive any profits when bank use it? Or does Ripple not function without the XRP coins. Same questions apply to the other alt coins..

[In-Op]

Look a gentleman by the name of Andreas Antonopoulos up. He's has a wonderful way of explaining what Bitcoin and the blockchain technology offer humanity. I think once you understand what decentralized currency really means and how Bitcoin redistributes the power centralized banking has over humanity, you can then start to grasp where the value exists in Bitcoin/Litecoin which then other crypto currencies derive their value.

[The Sceptical Chymist]

Thin air, basically.  More specifically, the value is generated whenever the given altcoin is bought or sold on an exchange--that's market forces in action, supply & demand.  As to why anything other than bitcoin should have value, your guess is as good as mine.  I think most altcoins are totally useless and shouldn't exist, but people love to gamble with them and speculate on them.  So long as that's true, there's going to be a value assigned to them.  As long as two people agree that something is worth something, it will be worth something.

[ppc.pt]

Bitcoin and simular coins for payments, I understand.

But for other coins, I can see the why the technology is useful, but how do the coins/tokens benefit of this?
For example Ripple, I see the value of the technology, so assuming all banks at some stage will use them. How is XRP benefitting of this?

Another example Golem, understand the technology of a global super computer. But how will the GNT benefit of global usage? Am sure I am missing something, thanks a lot for helping me out!

You can call them coins, but you can also call them tokens. Some of them are tokens of a specific new company with a specific new product developed with blockchain technology. You buy those tokens the same way you buy stocks, with a plus that those can be used within the company or traded for other tokens. Also they are scarce, with limited supply. There are numberous ways that blockchain can be implemented to make things cheapier and more efficient.

Hope I could help

[Magkirap]

Bitcoin and simular coins for payments, I understand.

But for other coins, I can see the why the technology is useful, but how do the coins/tokens benefit of this?
For example Ripple, I see the value of the technology, so assuming all banks at some stage will use them. How is XRP benefitting of this?

Another example Golem, understand the technology of a global super computer. But how will the GNT benefit of global usage? Am sure I am missing something, thanks a lot for helping me out!

They can ba also used as bitcoin soon as investors supported it. One example of it is ethereum and waves. Both of them has their own platform same as bitcoin which can stand like bitcoin and can be convertable for fiat money. The major purpose of them is to give profit for their holders. This has a same concept like in stock market.

[theroryshow]

it is speculation, but if some of these tokens/coins can achieve half of what they aim to do they could be revolutionary. I think of all the things in our society that need to be more secure, and all the people whose local government's currency is not to be trusted. 7 Billion people have a lot of needs and these innovators are trying to answer some of these global problems. Some will survive and some won't. However, it is hard not to make money right now with current conditions.

[Zadicar]

Bitcoin and simular coins for payments, I understand.

But for other coins, I can see the why the technology is useful, but how do the coins/tokens benefit of this?
For example Ripple, I see the value of the technology, so assuming all banks at some stage will use them. How is XRP benefitting of this?

Another example Golem, understand the technology of a global super computer. But how will the GNT benefit of global usage? Am sure I am missing something, thanks a lot for helping me out!

Speculation is the leading cause of the price rise in altcoins. Even coins like Ethereum haven't proved themselves yet but the crypto economy moves around speculation rampantly.

True,speculations of people or users of it does really gives value on a certain altcoin even they didnt still prove anything on cryptoworld or on development. Price do comes from its users commonly as long there is a demand price would rise up no matter what.If there are no altcoin on the market then all would be focused on bitcoin only but it wont happen because people would tend to use or create alternatives later on.

[dissident]

Simple. Bitcoin has slow confirmation times and high fees and we need a low fee blockchain technology to take it's place that can confirm QUICKLY because a bunch of mining rhinos want to keep making a killing with their  mining hardware.  Rather than just pick one, the market has decided to value several potential projects as a possible candidate. That, or they just feel like pumping a bunch of old crap for the sake of making money, which is a perfectly valid reason.  

[2bfree]

It's simple, people want it has value. I was sell cow poop it would be worthless but if that same cow was on Mars and came back then someoen will pay 10BTC for that poop. Value come from people wanting it.

So if I create a poop token and no one wants it then has no value. If 100,000 people want that poop coin now I have winning ICO and coin and technology don't matter people who want the poop IS WHERE THE VALUE COME FROM.

Did I explain it well?

[The Notorious BTC]

Community plays a big part. Also just pure speculation then FOMOness

[Pursuer]

only hype, pump and dump and manipulations by the whales combined with lots of greedy newbies wanting to make a lot of money overnight!

look up penny stocks that may help you understand it a little better. they are stocks of small companies, virtually pointless with a high volatility and high chance of losing. these companies have no standards, no history, low liquidity, and quite risky.

Penny stocks are more suitable for investors with a high tolerance for risk. Typically, penny stocks have a higher level of volatility, resulting in a higher potential reward and a higher level of risk. Considering the heightened risk levels associated with investing in penny stocks, investors should take particular precautions.

read more: http://www.investopedia.com/terms/p/pennystock.asp

the correct definition of altcoin market in my opinion is: a game of speculation that resembles gambling more so than trading

[Argon2]

Bitcoin and simular coins for payments, I understand.

But for other coins, I can see the why the technology is useful, but how do the coins/tokens benefit of this?
For example Ripple, I see the value of the technology, so assuming all banks at some stage will use them. How is XRP benefitting of this?

Another example Golem, understand the technology of a global super computer. But how will the GNT benefit of global usage? Am sure I am missing something, thanks a lot for helping me out!

Value and Price are two different things. 99% of altcoins have a price but no value.

[freeElectron]

Bitcoin and simular coins for payments, I understand.

But for other coins, I can see the why the technology is useful, but how do the coins/tokens benefit of this?
For example Ripple, I see the value of the technology, so assuming all banks at some stage will use them. How is XRP benefitting of this?

Another example Golem, understand the technology of a global super computer. But how will the GNT benefit of global usage? Am sure I am missing something, thanks a lot for helping me out!

Value and Price are two different things. 99% of altcoins have a price but no value.

Nothing 'has' value. Value is given.
Just like gold. We give it value because we have been thought to. It's just a shiny stone.
We believe in value. We give bits of paper (which could be used to wipe the behind) the same value as we give shiny stones. The papers have no value.

[omonuyak]

Bitcoin and simular coins for payments, I understand.

But for other coins, I can see the why the technology is useful, but how do the coins/tokens benefit of this?
For example Ripple, I see the value of the technology, so assuming all banks at some stage will use them. How is XRP benefitting of this?

Another example Golem, understand the technology of a global super computer. But how will the GNT benefit of global usage? Am sure I am missing something, thanks a lot for helping me out!

Think the value you are ask of is there inherent values? If it is there inherent values then you need  to click on the ICOs whitepaper to understand what they stand for after reading it. I do believe and also practice that before invest into any ICO I most understand what they stand for.

[arbitrage]

Value of coins comes from high expectations, which are manipulated on daily basis. Trends are created on fly, and people are being influenced by success of other projects, no matter if we actually do not need it. Marketing masters succeed and persuade us that we must join, with an genius tactic, which glorifies project with its collected money, which is absurd.

[Ayers]

Bitcoin and simular coins for payments, I understand.

But for other coins, I can see the why the technology is useful, but how do the coins/tokens benefit of this?
For example Ripple, I see the value of the technology, so assuming all banks at some stage will use them. How is XRP benefitting of this?

Another example Golem, understand the technology of a global super computer. But how will the GNT benefit of global usage? Am sure I am missing something, thanks a lot for helping me out!

value increase because people think that value will increase lol, it's sound stupid but this is the sole reason why all the altcoin are increase, people are greedy and want more easy money, they jump from oen altcoin to another until they can get a huge return, it's all gambling now and blinding throwing money everywhere hoping for that coin to be pumped, i think now there are many naive investors that don't know what to buy and are buying everything

[AnCap101]

alot of the coins now will be house hold names in 5-10 years

[kryptqnick]

Bitcoin and simular coins for payments, I understand.

But for other coins, I can see the why the technology is useful, but how do the coins/tokens benefit of this?
For example Ripple, I see the value of the technology, so assuming all banks at some stage will use them. How is XRP benefitting of this?

Another example Golem, understand the technology of a global super computer. But how will the GNT benefit of global usage? Am sure I am missing something, thanks a lot for helping me out!

Speculation is the leading cause of the price rise in altcoins. Even coins like Ethereum haven't proved themselves yet but the crypto economy moves around speculation rampantly.

I think that this point has to be detalized. At first, speculation doesn't influence the price directly but only through influencing traders and other investors. Traders see people speculating about prices and buy some coins which then makes the price grow. As for ethereum, I think that yes, mostly its price comes from people and companies investing in it but there are people who really use it at least somehow (perform smart contracts, for instance).