Coins aren't stock...or am I missing something?

[Mobstar99]

Why do people continue to act as if an Altcoin is akin to buying stock in a company? The future of blockchain tech is extremely bright and will in all likelihood revolutionize many different industries. However, 99% of the Altcoins have no utility and will never have a utility. Yet, people hype, and buy some of these coins to the point they have a market cap in the hundreds of millions, if not billions.

It's appears to me that people are treating Altcoins like stock? Despite how promising a blockchain's premise is, the Altcoin associate with that specific blockchain, does not give someone ownership or right to dividends. The Altcoin has no intent on utility and has simply been used to raise funds like an IPO.

For example Ripple, 3rd largest crypto with a market cap of $19b. Ripple is a great idea and a perfect example of how Blockhain can revolutionize an industry. Many big name banks around the world have signed up to use Ripple's blockchain, which has clearly helped propel XRP to such a huge market cap. Except Ripple's blockchain doesn't require the banks to use XRP and they can simply use Fiat currencies. Furthermore, the banks have said they have no interests in using XRP. The fact Ripples blockchain can facilitate fiat currency, pretty much renders XRP useless.https://www.bloomberg.com/news/articles/2018-01-25/ripple-wants-xrp-to-be-bitcoin-for-banks-if-only-the-banks-wanted-it

Owning XRP does not mean you own a piece of Ripple and the huge potential of their blockchain. XRP doesn't to mean you will receive a dividend, but people have bought XRP and pushed is valuation to an astronomical value like it is stock in Ripple. I just don't get it.

I don't mean to pick on XRP, but it's value makes it an easy target. Almost every other Altcoin appears to have an even less promising future then XRP when it comes to their utility.

Perhaps I'm missing something though......

[Agozyen]

You are missing a lot.  I think you need to read up on what coins are actually out there.  There are some that have no utility but you are plain wrong in stating that the number is 99%.  Most people that are investing in altcoins are hoping that the price will rise.  No one is doing it for the dividends.  Maybe for the staking, but not the dividends.

[MoonIsBlue]

Why do people continue to act as if an Altcoin is akin to buying stock in a company? The future of blockchain tech is extremely bright and will in all likelihood revolutionize many different industries. However, 99% of the Altcoins have no utility and will never have a utility. Yet, people hype, and buy some of these coins to the point they have a market cap in the hundreds of millions, if not billions.

It's appears to me that people are treating Altcoins like stock? Despite how promising a blockchain's premise is, the Altcoin associate with that specific blockchain, does not give someone ownership or right to dividends. The Altcoin has no intent on utility and has simply been used to raise funds like an IPO.

For example Ripple, 3rd largest crypto with a market cap of $19b. Ripple is a great idea and a perfect example of how Blockhain can revolutionize an industry. Many big name banks around the world have signed up to use Ripple's blockchain, which has clearly helped propel XRP to such a huge market cap. Except Ripple's blockchain doesn't require the banks to use XRP and they can simply use Fiat currencies. Furthermore, the banks have said they have no interests in using XRP. The fact Ripples blockchain can facilitate fiat currency, pretty much renders XRP useless.https://www.bloomberg.com/news/articles/2018-01-25/ripple-wants-xrp-to-be-bitcoin-for-banks-if-only-the-banks-wanted-it

Owning XRP does not mean you own a piece of Ripple and the huge potential of their blockchain. XRP doesn't to mean you will receive a dividend, but people have bought XRP and pushed is valuation to an astronomical value like it is stock in Ripple. I just don't get it.

I don't mean to pick on XRP, but it's value makes it an easy target. Almost every other Altcoin appears to have an even less promising future then XRP when it comes to their utility.

Perhaps I'm missing something though......

You're right as far as ripple goes but it can't be said for every coin. I think that the evaluations for a lot of coins are ''irrationally exhuberant'' maybe thats why we're having this monstrous crash.

[xenomorphe1]

You are totally right. People are playing the cryptos like stocks/gold/fiat money.
They think that the coin/token have a real use and value. A lot of people/companies are scamming people like this.
I think most people already knew this. But they only think about getting rich and fast.
As there was everyday a news about the value of Bitcoin on last year.
That's why every coins are overevalute now. And i don't think the market will change. It will always be like this.
Only greed to try to steal money from other people drive the market.
We are also in the same pot. (If you also invest in some cryptos)

[Trofo]

You are partially right. There is a lot of the projects out there which have absolutely no use whatsoever. But in my opinion that number is closer to 80% than 99%. All of them will fail miserably and the strongest projects among remaining 20% will prevail. That is normal in any new/young market.

My main indicator whether to invest in new project is possibility of real world usage. If it has it's use and on top of that there is solid team behind it I will consider investing.

I will not go into Ripple discussion here because it was just used as example an is not that relevant to theme of this topic.

[luckybar]

There are so many diverse cryptos, you have currencies, utility tokens, etc.  Its hard to fit most cryptos into just one category.

[slaman29]

You are missing a lot.  I think you need to read up on what coins are actually out there.  There are some that have no utility but you are plain wrong in stating that the number is 99%.  Most people that are investing in altcoins are hoping that the price will rise.  No one is doing it for the dividends.  Maybe for the staking, but not the dividends.

Sorry, have to disagree here. I own two alt tokens for dividends. Which I have already been paid out for in one, and awaiting the other. OP is correct in saying that we shouldn't see them as stocks. These dividend tokens CAN BE compared to stocks, in that they represent some form of dividend distribution. But not company ownership or voting rights (but some alt projects have this actually).

You should look up coins that have already paid out dividends or some form of profit sharing.

[bhantom]

I agree with you, people do not know what they doing. This is caused by people which heard that here is easy profit. Most of them are without any knowledge, but we can not do anything in this situacion

[Idrisu]

Coins are quite different from stocks and commodities! Just that in trading there have some similarities and because of these similarities people tend to see them as the same. Coins are Internet money and cryptocurrencies is the future of the the world financial system. Stock markets are building there onw coin  on blockchain technology and that is like moving the world financial ssystem into blockchain technology.

[pey]

They are not stock but bitcoin is not a company, so it cannot be an stock but other tokens are also not stock but companies issue them have internal share structure similar to normal companies.

[thepo1m]

Only those that are not educated enough would comapre token and Stock as having thesame value, but there can be some comparision, the buy back and burning are two decision taking that one can make, also some project goes as far as paying dividends for token holders a good example is Taas team.

[bbc.reporter]

@Mobstar99. Yes but to use Ripple you have to have a minimum amount required of XRP in your wallet to activate it and all fees in Ripple are paid in XRP. It would be impossible for a bank not to use XRP if they want to use Ripple.

Also, I know the developers could have designed it not to have a token, but they way it was designed requires XRP. So saying that there is no need for XRP to use Ripple is wrong.

I am not defending them but you should have the facts right.

[Mobstar99]

You are missing a lot.  I think you need to read up on what coins are actually out there.  There are some that have no utility but you are plain wrong in stating that the number is 99%.  Most people that are investing in altcoins are hoping that the price will rise.  No one is doing it for the dividends.  Maybe for the staking, but not the dividends.

99% percent may be a bit of an exaggeration, but I think most would be hard pressed to argue against the fact a large majority have no utility or even intent on utility . So, why should the price ever rise for an Altcoin that has no utility? It shouldn't as far as I'm concerned. Hence, why it looks like to me that people are treating altcoins like stock.

Obviously speculation is the reason any coin with no utility would rise, but I can't understand how widespread speculation is in crypto....it baffles me, which is why I created the post in the first place. I haven't read every white paper, but the rampant speculation made me think I was missing something.

[Mobstar99]

You are missing a lot.  I think you need to read up on what coins are actually out there.  There are some that have no utility but you are plain wrong in stating that the number is 99%.  Most people that are investing in altcoins are hoping that the price will rise.  No one is doing it for the dividends.  Maybe for the staking, but not the dividends.

Sorry, have to disagree here. I own two alt tokens for dividends. Which I have already been paid out for in one, and awaiting the other. OP is correct in saying that we shouldn't see them as stocks. These dividend tokens CAN BE compared to stocks, in that they represent some form of dividend distribution. But not company ownership or voting rights (but some alt projects have this actually).

You should look up coins that have already paid out dividends or some form of profit sharing.

I wasn't aware there were coins that pay dividends. You sound like a smarter investor then most. Care to share what those coins are? I'd be interested to know what there market cap is. I'm guessing there will be several tokens with no dividend or utility that are worth significantly more. Which makes no sense to me.

[Mobstar99]

You are partially right. There is a lot of the projects out there which have absolutely no use whatsoever. But in my opinion that number is closer to 80% than 99%. All of them will fail miserably and the strongest projects among remaining 20% will prevail. That is normal in any new/young market.

My main indicator whether to invest in new project is possibility of real world usage. If it has it's use and on top of that there is solid team behind it I will consider investing.

I will not go into Ripple discussion here because it was just used as example an is not that relevant to theme of this topic.

I'd love to know some of the coins you think fall into that 20% realm? You're investing strategy is pretty similar to the way I look at things. I'm having a hard to finding coins that fall into the "potential real world usage and great team" categories though.

[Mobstar99]

Only those that are not educated enough would comapre token and Stock as having thesame value, but there can be some comparision, the buy back and burning are two decision taking that one can make, also some project goes as far as paying dividends for token holders a good example is Taas team.

I'm not comparing them to stock. The wild valuations a lot of useless coins have, leads me to believe a lot of investor are treating them like stock.

[tdeannova]

ripple is good and has been partnered by many big companies in the financial sector and banks, but until now I have not seen any real development. if there is no growth in the ripple in the next few years, I can say that the partnership has not been successful.

[Cryppy_guyL]

I think all this will pass. It is difficult to take Altcoin when this coin is not introduced in your country. In many countries even banned. I think it's a matter of time.

[BattleZeo]

Why do people continue to act as if an Altcoin is akin to buying stock in a company? The future of blockchain tech is extremely bright and will in all likelihood revolutionize many different industries. However, 99% of the Altcoins have no utility and will never have a utility. Yet, people hype, and buy some of these coins to the point they have a market cap in the hundreds of millions, if not billions.

It's appears to me that people are treating Altcoins like stock? Despite how promising a blockchain's premise is, the Altcoin associate with that specific blockchain, does not give someone ownership or right to dividends. The Altcoin has no intent on utility and has simply been used to raise funds like an IPO.

For example Ripple, 3rd largest crypto with a market cap of $19b. Ripple is a great idea and a perfect example of how Blockhain can revolutionize an industry. Many big name banks around the world have signed up to use Ripple's blockchain, which has clearly helped propel XRP to such a huge market cap. Except Ripple's blockchain doesn't require the banks to use XRP and they can simply use Fiat currencies. Furthermore, the banks have said they have no interests in using XRP. The fact Ripples blockchain can facilitate fiat currency, pretty much renders XRP useless.https://www.bloomberg.com/news/articles/2018-01-25/ripple-wants-xrp-to-be-bitcoin-for-banks-if-only-the-banks-wanted-it

Owning XRP does not mean you own a piece of Ripple and the huge potential of their blockchain. XRP doesn't to mean you will receive a dividend, but people have bought XRP and pushed is valuation to an astronomical value like it is stock in Ripple. I just don't get it.

I don't mean to pick on XRP, but it's value makes it an easy target. Almost every other Altcoin appears to have an even less promising future then XRP when it comes to their utility.

Perhaps I'm missing something though......

some people play altcoins like stock, another people like alcoin because they think related project or tech are prospective. There are always different buyers in the market, it’s not big deal. What’s your point? The market would not be such profitable, if there were not people who’s buying altcoin like stock.

[haryatiposton01]

Why do people continue to act as if an Altcoin is akin to buying stock in a company? The future of blockchain tech is extremely bright and will in all likelihood revolutionize many different industries. However, 99% of the Altcoins have no utility and will never have a utility. Yet, people hype, and buy some of these coins to the point they have a market cap in the hundreds of millions, if not billions.

It's appears to me that people are treating Altcoins like stock? Despite how promising a blockchain's premise is, the Altcoin associate with that specific blockchain, does not give someone ownership or right to dividends. The Altcoin has no intent on utility and has simply been used to raise funds like an IPO.

For example Ripple, 3rd largest crypto with a market cap of $19b. Ripple is a great idea and a perfect example of how Blockhain can revolutionize an industry. Many big name banks around the world have signed up to use Ripple's blockchain, which has clearly helped propel XRP to such a huge market cap. Except Ripple's blockchain doesn't require the banks to use XRP and they can simply use Fiat currencies. Furthermore, the banks have said they have no interests in using XRP. The fact Ripples blockchain can facilitate fiat currency, pretty much renders XRP useless.https://www.bloomberg.com/news/articles/2018-01-25/ripple-wants-xrp-to-be-bitcoin-for-banks-if-only-the-banks-wanted-it

Owning XRP does not mean you own a piece of Ripple and the huge potential of their blockchain. XRP doesn't to mean you will receive a dividend, but people have bought XRP and pushed is valuation to an astronomical value like it is stock in Ripple. I just don't get it.

I don't mean to pick on XRP, but it's value makes it an easy target. Almost every other Altcoin appears to have an even less promising future then XRP when it comes to their utility.

Perhaps I'm missing something though......

I also really like ripple,this is the reason why i love ripple,
Ripple is already a Coin of Choice for Business.

Hedge funds, banks and American Express have signed all as important supporters in the future of XRP and Ripple technologies. Ripple has created something that just a few other cryptoes have made it to this point: the currency that pre-existing businesses not only want to use, but will benefit from doing so .. Amazon is likely one of the big customers to take this step in 2018 Trading giants like Everything Store desperately need a coin that offers fast transaction time without the cost of paralyzing the current Bitcoin network. Ripple offers a solution to the problem, while also presenting coins supported by financial institutions. Although it is difficult to say what direction Amazon will take in relation to cryptocurrency, Ripple seems to be the most logical choice at the moment and continues.