There are many parts in the equation
No. There are only 2 parts
I think if you check any economics textbook you won't find any more.
Having said that, the other stuff you posted is relevant and useful because it forms a basis for the demand side of the equation. But only the market as a whole can prioritise those criteria in a quantifiable way. That quantity ends up in an order book.
In case anyone thinks I'm being overly negative, I'm not. I'm trying to be realistic. We need to separate out two things:
[1] - integrity and potential viability of the asset
[2] - price evolution
These two things have their own independent evolutionary paths. I hope I've made clear from my previous posts that as far as [1] as concerned, I think this is one of the most promising cryptocurrency projects around. I agree with most contributors on here that "there isn't anything that comes close to it" right now. I think Darkcoin has a great balance of practical anonymity without compromising on technical efficiency. It also appears to have a development team that can consistently deliver according to a roadmap which is no mean feat.
But the other of those two - price evolution - has its own little world. Periodically, the two things catch up with each other - just as has happened over that last 3 weeks - but we shouldn't expect them to always be in sync. If you are in it for the long term just stick your money in and wait. Keep following what goes on with the coin development and as long as it keeps its nose in front then sit tight.
But at the same time, we need to understand that this coin is a traded asset. That gives it a whole different meaning to market traders who are trading in and out of hundreds of coins a month. They have their own priorities and it's not something that is unhealthy either. It's the price to pay for the asset having a quoted market value rather than just a "theoretical value" which is what people like to give their beloved assets on Bitcointalk [ANN] threads.
Also, even though I posted earlier that I thought the correction would go on for "days if not weeks", those are just my opinions based on looking at charts. They could be wrong. For a start, charts are basically just moving averages of selling and buying momentum so they are not predictions. The longer term ones do take a while to turn around, but even so they are just speculative. I post my opinions good faith and try to give a basis but sometimes to challenge what I think are clearly inaccurate remarks by other posters
People shouldn't get too upset about the price declines if they really believe in the future of an asset. Just hold and wait for it to come back up. If it never comes back then you made the wrong evaluation right at the start and will have learned something. If it does then your quids in. That's the way every aspect of life works.
Here's my strategy for what it's worth:
I used to think that Bitcoin would be "superseded" by some better coin. Until a few moths back, I thought it would be Peercoin. Peercoin was so well thought out by its creator, it was thought through from an economics point of view and also well implemented technically. Then, the almighty flood of the "alts" started - a whole flotilla of them. Everyone started to think that Bitcoin was doomed and was loosing value due to all these alts sucking investment away from it.
Then, it just didn't happen.
1000 alt coins having every shape, size and type of algo didn't even put a dent in Bitcoin's valuation. When I thought about it, I realised that Bitcoin just has way too much network effect to be given away to an unknown. The biggest of these "network" effects is right under our noses without us even noticing - how do we measure the value of any alt coin ? In BITCOIN !! It is the reserve currency for the entire crypto currency market.
So now my strategy is this:
[1] - invest in alt coins which have genuine original work going on, as they are likely to accrue in value
[2] - accept that they will never reach more than about 20% of Bitcoin's value and make sure to realise a reasonable amount of the gain if they ever get near that point
[3] - hedge against the off chance that an exceptional "alt" actually breaks through the "LTC" glass ceiling and starts to approach Bitcoin's value by holding at most couple of hundred of the most likely competitor
Notice how easy it is to ensure yourself against the demise of Bitcoin. For example, if you think it's going to be DRK then given DRK's coin supply, you only need about 70 DRK to be amongst the next generation of Bitcoin millionaires - especially given BTC's likely future.
That's how I see it - but as I say, the beauty of these forums is that we can all benefit from each other's view and engender a more developed understanding of both the technical aspects of our investments, the price evolution of same and the future of crypto currencies as a whole, so please don't take all of this as anything other than one person's opinion and I will gladly learn from those of others which are equally made in good faith !
