Reason for alt coin's low values?

[Honeypot]

Inquiring minds want to know.

Going only by the ratio of number of coins that will be available, many alt coins should be in various regions between 1 to 5000 dollars range if BTC was worth 1100.

However, many alt coins are undervalued strictly on ratio basis, before the crash and now.

I know there are other factors involved - are coins capable of inflation, their block rates, time it will take to reach the coin supply limit, and many many more factors.

However, I am still curious to know why the exchange rates between various alt coins and BTC and fiat seem so unbalanced. Is it simply due to lack of interest as much as BTC, or some thing more complicated?

More to the point, is it a kind of imbalance that can be corrected to its proper values once more investors join in an public shows more interest? Or is it stuck that way?

If you could answer with examples from many of the alt coins in existence, say, from the http://coinmarketcap.com/ripple.html list, I would greatly appreciate it.


Discuss.

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[Amph]

btc fall

[Honeypot]

Did you even read my OP.

[johncoin]

I think it's because people in alt doesn't panicking too much and they aren't selling altcoins as other the BTC. More people just holding their coins instead of selling them.
But that's only my POV

[jonanon]

If only it was as easy investing in a coin with a small supply and it being more valuable then BTC in the future. Basically coins are only worth what people are willing to pay for them - the more there are the worse it is for the ones in existence now.

I really like the idea of alternative currencies but hate the way that there are so many, in essence, pointless coins that are simply there to make the developers money. Cryptsy is always offering more coins to trade and it is becoming silly. We need some alt coins in place so as not to let BTC becomes controlled by too few but NOT TOO MANY!

If people really cared about the future of crypto currencies then they would not even contemplate creating a new one now, dismembering the ones already in existence.

We should stick to the obvious ones - Bitcoin, Litecoin, Namecoin, Anoncoin, Peercoin and perhaps one or 2 more. Can you imagine an ecommerce site offering 100 forms of payment?

[shtako]

If only it was as easy investing in a coin with a small supply and it being more valuable then BTC in the future. Basically coins are only worth what people are willing to pay for them - the more there are the worse it is for the ones in existence now.

I really like the idea of alternative currencies but hate the way that there are so many, in essence, pointless coins that are simply there to make the developers money. Cryptsy is always offering more coins to trade and it is becoming silly. We need some alt coins in place so as not to let BTC becomes controlled by too few but NOT TOO MANY!

If people really cared about the future of crypto currencies then they would not even contemplate creating a new one now, dismembering the ones already in existence.

We should stick to the obvious ones - Bitcoin, Litecoin, Namecoin, Anoncoin, Peercoin and perhaps one or 2 more. Can you imagine an ecommerce site offering 100 forms of payment?

QFT. My thoughts exactly. You even listed the same coins i would have. 

[braytz]

btc fall

this.

[Honeypot]

Whatever the BTC price may be, considering pure ratio of supply limit on some coins compared to BTC, they should be at least a third or half that. One only needs to look at lite coin to know this is not the case. I am sure mining rates and other factors such as ease of trade and current number of coins available play a part.

Some one enlighten me on what it would take for these coins to inflate in relative value against BTC in the future. More public interest? More exchange acceptance?

Is it even possible? Are the current exchange ratios really undervalued, or are they stable the way they are?

[Amph]

Did you even read my OP.

yeah but after my answer 

[Honeypot]

Did you even read my OP.

yeah but after my answer 

Of course.

[Mortimer452]

All cryptocurrencies' values in $USD are based on what is known as a "perceived value."  It is based solely upon its users confidence in the currency and its usefulness in being bartered for goods (and of course being bartered for $USD/EUR and other fiat currencies).

This works the exact same way as government-backed currencies as well.  $USD is more valuable than Mexican Pesos because the U.S. is considered a more developed, productive, wealthy, prosperous and successful nation than Mexico (whether that is actually true is another discussion, but I digress . . .)

Bitcoin, having started in 2009 and far, far more accepted for online purchases than any other crypto, is years ahead of the Cryptocurrency game compared to 99% of all other altcoins.  Heck probably 95% of the altcoins on exchanges right now are less than a year old.  Because of its seniority it carries a much higher perceived value than all other coins.

[Honeypot]

All cryptocurrencies' values in $USD are based on what is known as a "perceived value."  It is based solely upon its users confidence in the currency and its usefulness in being bartered for goods (and of course being bartered for $USD/EUR and other fiat currencies).

This works the exact same way as government-backed currencies as well.  $USD is more valuable than Mexican Pesos because the U.S. is considered a more developed, productive, wealthy, prosperous and successful nation than Mexico (whether that is actually true is another discussion, but I digress . . .)

Bitcoin, having started in 2009 and far, far more accepted for online purchases than any other crypto, is years ahead of the Cryptocurrency game compared to 99% of all other altcoins.  Heck probably 95% of the altcoins on exchanges right now are less than a year old.  Because of its seniority it carries a much higher perceived value than all other coins.

Wouldn't more specific and real factors also influence the value? Such as coin limits, rate at which coins are mined and introduced, the time needed for coins to eventually mine all the way up to the limit, etc.

If anyone has any ideas about how these hold the coin value back (because so and so coin is mined this much faster/slower than bitcoin, it will remain limited to 'this much' below its proper ratio value) it would be useful.
 

[st9999]

There is something that I couldn't understand

+ DMD (Diamond): 1 USD
+ FRK (Franko): 4 USD
+ NVC (NovaCoin): 10 USD

But they look the same. I try them all. DMD seems to be harder to mine than FRK and NVC. So how are they priced? NVC is highly overvalued or DMD is extremely undervalued??

[RenegadeMind]

Can you imagine an ecommerce site offering 100 forms of payment?

The way payment systems now are set up is simply idiotic.

However, there's no reason that 100 currencies can't be supported by a payment system. Credit cards do foreign exchange, and you pay through the nose, but they do it. So how many countries are there where credit cards are used? There's little reason why a company like BitPay couldn't do the same.

I would expect exchange rates on MeTooCoin to be pretty expensive, but for BTC/LTC, you'd get a decent rate, and probably better than you'd ever get from a bank for USD/EUR, etc.

So if the MTC currency is expensive to use, fewer people will use it. If DOGE is relatively easy and cheap to use, more people will use it.

I'd really love to see DOGE get up there though. It's just too much fun, and has the potential to attract more people simply through its "fun factor".

[DigitalHermit]

Some one enlighten me on what it would take for these coins to inflate in relative value against BTC in the future. More public interest? More exchange acceptance?

Is it even possible? Are the current exchange ratios really undervalued, or are they stable the way they are?

You're not thinking this through clearly. The simple answer is supply and demand. In a situation where the supply of crypto-currencies is growing rapidly and in fact INFINITE and the market demand is very much FINITE the picture is clear: The value of any particular crypto-currency in this process of unlimited creation will tend towards ZERO.

For a crypto-currency to resist this highly probable outcome and maintain a non-zero value it needs to offer something unique of value to the market that others do not. For Bitcoin the value proposition is obvious: "First Mover, Network Effect, Largest Market Cap, Widest adoption".  For Litecoin the value proposition is still there, though less clear "History/Longevity, Faster Confirmations, Harder to dominate through ASICs".

For third place and beyond the value proposition gets even murkier.

Peercoin: Proof of stake means moar secure!
Namecoin: For storing uncensored name/value pairs
Primecoin: Useful for finding prime numbers
Quark: Lots of nested Hashes means moar secure!
DogeCoin: It's funny (until people get bored with cute dog jokes)
etc...

With hundreds and then thousands of these coming online over the next year, how much demand or even attention will people give to these? Answer: Not enough to make their values > Zero. Unless your favorite crypto is in the top 10, or more like top 3, I wouldn't expect much from its price other than short bursts caused by occasional pump and dump attempts.

[Honeypot]

Some one enlighten me on what it would take for these coins to inflate in relative value against BTC in the future. More public interest? More exchange acceptance?

Is it even possible? Are the current exchange ratios really undervalued, or are they stable the way they are?

You're not thinking this through clearly. The simple answer is supply and demand. In a situation where the supply of crypto-currencies is growing rapidly and in fact INFINITE and the market demand is very much FINITE the picture is clear: The value of any particular crypto-currency in this process of unlimited creation will tend towards ZERO.

For a crypto-currency to resist this highly probable outcome and maintain a non-zero value it needs to offer something unique of value to the market that others do not. For Bitcoin the value proposition is obvious: "First Mover, Network Effect, Largest Market Cap, Widest adoption".  For Litecoin the value proposition is still there, though less clear "History/Longevity, Faster Confirmations, Harder to dominate through ASICs".

For third place and beyond the value proposition gets even murkier.

Peercoin: Proof of stake means moar secure!
Namecoin: For storing uncensored name/value pairs
Primecoin: Useful for finding prime numbers
Quark: Lots of nested Hashes means moar secure!
DogeCoin: It's funny (until people get bored with cute dog jokes)
etc...

With hundreds and then thousands of these coming online over the next year, how much demand or even attention will people give to these? Answer: Not enough to make their values > Zero. Unless your favorite crypto is in the top 10, or more like top 3, I wouldn't expect much from its price other than short bursts caused by occasional pump and dump attempts.

The supply and demand is certainly a part of the problem. However, remember this whole crypto concept is designed to become a major player in world financial markets. Credit cards also exist in vast quantities, but they are used enough to warrant investment. That may be a simple argument, but the parallel is enough to warrant serious consideration about alt coins and not dismiss them completely.

Granted, vast number of them look like pump and dump schemes. However, if bitcoin survives this period and begins going up again, it will prove a certain degree of gravity and importance in this new concept. When that happens, alt coins that are currently low in price will also receive greater attention due to their relative affordability.

Right now they may seem frivolous, but a good number of them seem to hold promise.

[DigitalHermit]

Credit cards also exist in vast quantities, but they are used enough to warrant investment. That may be a simple argument, but the parallel is enough to warrant serious consideration about alt coins and not dismiss them completely.

And how many major credit card brands are there?

Visa, Mastercard, AMEX, Discover

I rest my case.