Thanks for the time and feedback. I think you will bucket currencies like stocks, without all the management per se.
1. Blue Chip Currencies - These are going to be your front runners, where the security, encryption and commercial acceptance are a viability to cause the general consumer to participate. In my view, these would classified as the BTC, LTC and Quarks of the world. From there, you determine what you feel comfortable in investing and manage your risk, whether it's price, liquidity, time frame, etc.
2.Penny Currencies (P&Ds) - These are the classified as the penny stock P&Ds. Just a shell currency, heavy premining and instant flip for the early insiders to generate ROI. The "shareholders" are left holding the bag in something that had no viability or sustainability.
3.Trend/Hype Currencies - These are classified as short term ROI plays where there is pseudo media attention and possibly value play. I use this particular example for COYE. The foundation of the currency may not be as strong as the blue chip ones, but due to the controversial nature, it may rise based on the attention.
Love to hear more analysis.
Thanks,
YC
A few observations and questions regarding alt coins.
1) Seems like everyday new virtual currencies are coming out flooding the
market. I read somewhere 5 a day are coming into the market, I assume most
will die though. How do we know which are good or which are a bunch of
crap? Miners mine, and than sell and off to the new ones, how will this
effect the market, such as BTC, LTC, Quark, short term, long term. Are these new
currencies have much of a chance to get on an exchange, or do they need to
be somewhat solid first, how is that determined, does getting on an
exchange means is a good coin or not?
2) Dogecoin, like it's price, seems to have a strong following.
However, going to have a 100,000,000,000 coins, which is crazy, is that a big negative
why the price is so low. Does you feel the ROI is there, maybe for it to go up to 5
cents maybe on that coin, if so why?
3) I hope Virtual currency doesn't turn out to be a MLM type of crowd, where
people jump around to the next hot thing while the last hot thing dies out
and most people lose. it's going to hurt the credibility of the industry.
I am all for diversifying, but it's a concern.
4) What % of virtual currencies do folks think will survive 5%, 10%, etc, and why?
Thanks,
YC
I find this very interested and wish I had more time to discuss this so I'll just summarise my replies to the observations.
1.It seems to me that these alt coins are quite variable in both quality and how strong the ideas are so I'm seeing alt coins that exist but can't be exchanged yet I see other examples where I can exchange them so I suspect that the ones which don't make it to an exchange will simply die off rather quickly as they'll be of no value if you can't trade/exchange them. So in my view a coin has to make it to an exchange,then the success tends to be determined by how often they get traded.
2.Having such a large no of doge coins isn't so bad,wheat matters to me more is how valuable there are and how easy they are to profit from. I'd love to sell for all my dogecoin when they reach over $1 each as I have over 20k now of the coins.
3.I think that we're already there with the concept amounting more to an MLM for crypto currencies as I often see people jumping on to a new currency,mine it all,sell at the highest price and jump onto the next big thing then the cycle repeats.As long as new alt coins keep being invented,the cycle will continue.
4.After seeing the influx of coins,I have to say that less than 5% of all crypto currencies will take off simply because most alt coins have no unique selling points and don't offer any new innovation.Look at Bitcoin and Litecoin,these are the only 2 cryptocurrencies that I can say have really taken off so far.I think dogecoin has a sort of factor as it's mostly a novelty rather than innovation like Bitcoin vs Litecoin (Sha-256 vs Scrypt technologies).
I hope my views are of interest to those looking for a discussion
