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May 29, 2013, 05:50:41 PM |
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I get the feeling that more people are seeing the value of BTC as being the primary driver of this industry and are scaling back on their speculations in alt coins. (Of course this also might have something to do with the relative stability of BTC.) It also doesn't help that we are having a high influx of alt coins, sort of watering down the alt coin market.
Until an alternative crypto-currency comes out that is REALLY better than BTC, I just don't see some of the past valuations holding up. (Hey, even VHS won out over the superior tech in Beta.) Regarding alt coin valuations, let's take the main alt coin in Lite Coin; it is right around $3 per LTC currently. Bitcoin is at around $129 per BTC. Considering that there will be 4X as many LTC shares as BTC shares, then the current valuation of LTC, at a ratio of 10.75 (=$129/12) seems reasonable if not a bit high considering that at this time LTC doesn't really have anything associated with it outside of being an insurance of sorts. Yes it is faster than BTC and also uses an interesting and CPU/GPU friendly proof of work scheme in scrypt. My point is, we are not seeing anything that appears much better to the thousands involved in this community.
I like some of what the other alt coins have to offer, but they seem like ideas in which can perhaps be integrated into BTC, not replace it. I love what Namecoin does with its decentralized method of hosting DNS and notice that its price has been relatively stable, while some of the other coins I followed have been dropping. I wonder if this is a part of a coming trend or just related to the "stable" times.
Comments? I'm not trying to say I know, just presenting an opinion here.
IAS
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