How to calculate the real price of a coin ?

[Sylon]

Hello crypto-land,

I'm wondering since few time how to calculate the true price of a coin. Does anyone knows how to do it ?
When I'm checking the total supply of few altcoins, on coinmarketcap, I see that the price can be very different between two altcoins with the same amount of total supply.
Of course, the "hype" does much here, but can we know when a price is overvalued or undervalued ? What about the market cap ?

Also, for the pre-sale such as IPO or ICO, can we know if the selling price is too much high or low ?

Thank you in advance for your help,

Regards

[1713554797]

1713554797

[1713554797]

1713554797

[1713554797]

1713554797

[1713554797]

1713554797

[1713554797]

1713554797

[Bralex]

Hello crypto-land,

I'm wondering since few time how to calculate the true price of a coin. Does anyone knows how to do it ?
When I'm checking the total supply of few altcoins, on coinmarketcap, I see that the price can be very different between two altcoins with the same amount of total supply.
Of course, the "hype" does much here, but can we know when a price is overvalued or undervalued ? What about the market cap ?

Also, for the pre-sale such as IPO or ICO, can we know if the selling price is too much high or low ?

Thank you in advance for your help,

Regards

I would like to know this aswell,  i do pretty much the same as you with coin supply etc  but that is only a rough guide and not the greatest lol

Check the past price and trend to get a current average price whether that is overvalued or undervalued, check for development and lastly but not least the community buz for the coin at the time of the search.

Would like to know more about it to improve.

Good luck

[Shame_Game]

me too. if there is a formula to determine values of coins reliably you could sell it for quite a lot ironically.

[hoertest]

the "real" price is what people are willing to pay for it at any given point in time. So every price is real.
Its supply and DEMAND. supply you know. Demand you have to anticipate yourself.

[kelsey]

Hello crypto-land,

I'm wondering since few time how to calculate the true price of a coin. Does anyone knows how to do it ?
When I'm checking the total supply of few altcoins, on coinmarketcap, I see that the price can be very different between two altcoins with the same amount of total supply.
Of course, the "hype" does much here, but can we know when a price is overvalued or undervalued ? What about the market cap ?

Also, for the pre-sale such as IPO or ICO, can we know if the selling price is too much high or low ?

Thank you in advance for your help,

Regards

All cryptos including bitcoin are priced by one simple market dynamic;

http://en.wikipedia.org/wiki/Greater_fool_theory

as for IPOs or ICOs as they chose to call them here, most are illegal so any non zero amount is too much.

[TaunSew]

Until there is proof of user adoption no coin has value, beyond speculative value.

News sites today are all reporting about an app called Slack which already has a $billion in seed investments, despite many reports indicating their revenue is only $millions (people don't really pay for free content) and real active user base is under 20,000 (again most of these people aren't really paying anything).    

[picolo]

Hello crypto-land,

I'm wondering since few time how to calculate the true price of a coin. Does anyone knows how to do it ?
When I'm checking the total supply of few altcoins, on coinmarketcap, I see that the price can be very different between two altcoins with the same amount of total supply.
Of course, the "hype" does much here, but can we know when a price is overvalued or undervalued ? What about the market cap ?

Also, for the pre-sale such as IPO or ICO, can we know if the selling price is too much high or low ?

Thank you in advance for your help,

Regards

The price is so speculative that it is hard to have a method to calculate the real price but there are ways to know if the altcoin has more chances of success than others : dev work, new feature, is it used somewhere, community...

[runpaint]

The "real" price can be estimated by a mining profitability calculator.

If you can mine a coin for less BTC than it's selling for, then go rent a rig at miningrigrentals.com or use your own computer.

If the coin is being dumped for less than it costs to mine it, then it's currently a good price to buy.

Coins cost electricity to mine, and that is their minimum price.  When block rewards halve, and when more miners compete, the cost goes up because people have to spend more electricity to mine the same amount of coins.  If they have to pay for more electricity to mine a coin, they have to sell the coin for more money.

[arvindr]

There are multiple factors. First the cost to obtain/mine the coin. You can't expect it taking 10 cents to mine a coin, and the price of each coin being a dollar.
Also the total supply limits of what the final price would be.

Some coins also have a flexible funding. So if 10 btc is raised, and supply is 1000 coins, then price per coin becomes 1/100 BTC.

[Sylon]

the "real" price is what people are willing to pay for it at any given point in time. So every price is real.
Its supply and DEMAND. supply you know. Demand you have to anticipate yourself.

Of course, but why it's not rare to see on altcoin's threads (which in some cases, are very innovative) people who say "Great ! But the selling price is too high !" "Too expensive !"

Hello crypto-land,

I'm wondering since few time how to calculate the true price of a coin. Does anyone knows how to do it ?
When I'm checking the total supply of few altcoins, on coinmarketcap, I see that the price can be very different between two altcoins with the same amount of total supply.
Of course, the "hype" does much here, but can we know when a price is overvalued or undervalued ? What about the market cap ?

Also, for the pre-sale such as IPO or ICO, can we know if the selling price is too much high or low ?

Thank you in advance for your help,

Regards

All cryptos including bitcoin are priced by one simple market dynamic;

http://en.wikipedia.org/wiki/Greater_fool_theory

as for IPOs or ICOs as they chose to call them here, most are illegal so any non zero amount is too much.

I heard about Greater Fool theory but I never expected that bitcoin's and altcoin's prices were calculated by it, but now you come to mention it, I think you're right.
+ Are you sure that IPOs and ICOs are illegal ? Why are you saying that ?

The "real" price can be estimated by a mining profitability calculator.

If you can mine a coin for less BTC than it's selling for, then go rent a rig at miningrigrentals.com or use your own computer.

If the coin is being dumped for less than it costs to mine it, then it's currently a good price to buy.

Coins cost electricity to mine, and that is their minimum price.  When block rewards halve, and when more miners compete, the cost goes up because people have to spend more electricity to mine the same amount of coins.  If they have to pay for more electricity to mine a coin, they have to sell the coin for more money.

There are multiple factors. First the cost to obtain/mine the coin. You can't expect it taking 10 cents to mine a coin, and the price of each coin being a dollar.
Also the total supply limits of what the final price would be.

Some coins also have a flexible funding. So if 10 btc is raised, and supply is 1000 coins, then price per coin becomes 1/100 BTC.

OK for PoW coins but what about PoS coins ?

[runpaint]

OK for PoW coins but what about PoS coins ?

They don't have the inherent value of PoW coins, because they don't cost much electricity to mine.  So the price is decided by the few people who already have coins.

[picolo]

OK for PoW coins but what about PoS coins ?

They don't have the inherent value of PoW coins, because they don't cost much electricity to mine.  So the price is decided by the few people who already have coins.

Yes.

[tss]

see how much it costs to produce a coin.

if coin production doesn't cost anything then price is close to 0.

[spinnel]

see how much it costs to produce a coin.

if coin production doesn't cost anything then price is close to 0.

You need at least two devices with different IP addresses running a wallet to start a coin off. That costs money however you do it. Granted, it's not much money, but it still costs.

If you want your coin to be taken seriously you need to pay for a website and block explorer too.

[drakoin]

check out this thread:
https://bitcointalk.org/index.php?topic=444515.5

HTH

[runpaint]

see how much it costs to produce a coin.

if coin production doesn't cost anything then price is close to 0.

You need at least two devices with different IP addresses running a wallet to start a coin off. That costs money however you do it. Granted, it's not much money, but it still costs.

If you want your coin to be taken seriously you need to pay for a website and block explorer too.

He's not talking about creating the coin network, he means how much it costs to generate each coin. 

If you clone Bitcoin and then type the numbers "2,000,000,000" for the genesis block reward, and then offer those coins for sale as an ICO, you're just making up money out of thin air that isn't worth anything.  It would have cost you the same number of keystrokes to create 10 billion, or 100 billion, or 100 trillion.