How to build a formula to put long term investment value onto a coin?
Elaborate.
I see a lot of posts for different coins that I watch that say something like "this coin is really worth $5 each, but it is only trading at $0.75 each, such a good deal", or things like that. I just have seen someone
do it in this SapienceCoin thread.
I asked the same question there. I am interesting in economics of crypto currency and investments in it. And is there any way to give a formula method of its value? Or is it all about looking at a chart and say "oh this is lower than one month ago"?
Does this make more sense now?
Nice to see the same old jibber jabber on this coin.
This coin went from $850k at peak to around $60k now. Rather than fudding the price of it and worrying about sub penny ante players, let it slowly drift into the altcoin heap or do something to regenerate interest in the coin.
In regards to StudyEconomics' question, which I had no idea was originally on HYP when he asked about the same on XAI/Sapience AIFX, it is downright pathetic this coin didn't crash above Novacoin. Heck even scammy MMXIV is wiping the floor with HYP.
My flawed calculation of the coin was that it could become a social/tipping coin (HYP it up). Then again, I was the only one who thought this since for everyone else it was an experiment/toy. To anyone who saw that the community would never do anything to move this coin outside of the usual altcoin heap and dumped into oblivion, well played. You're smarter than me.
And before anyone asks/whines, no I didn't make anything off this coin since I stupidly had more faith in it than it seems anyone else did. Hell, I even caught almost 10 BTC of it at 2k sat when BALLS came out and people were ready to rage dump to go on to the next thing.
In hindsight, selling at 1.5k down to 500 sat at a loss was smart since you can pretty much grab whatever you want now at 200-300 sat. And forget about selling for stake, since they are tens if not hundreds of others doing the same thing.
Anyway, hope you all have fun with my comments. I know you HYPsters will
I do believe I said I would be ecstatic if it settled above 500 sats, back when it first launched. I actually expected the level it's at, though I had hoped it would be a bit down the line. This is going to be the case with a highly inflationary coin, even as carefully crafted as this. As for selling stake, I'm doing it, a bit at a time, and making a profit. Not a huge one, a few pennies if we're to be realistic. But a few pennies to the positive for having my computer on all the time (which it would be anyway) is not a bad deal.
Next steps remain getting more widespread adoption, particularly merchants for goods and services. HYP has the same problem as most alts, it's not useful for anything BUT trade to BTC. This isn't a mechanical or programming issue, the coin works as intended and well. It's a perception and marketing issue. Unfortunately, I have no solid ideas on how to change it, though I have some amorphous ideas.
That being said, jumping from coin to coin to coin in the hopes of "catching the peak" and getting rich is a fool's game. Cryptos are relatively easy to make now that the framework is well in place, open source, and heavily tested. I'm not a programmer to any great extent. In fact, 90 percent of what I know about the technical side of crypto I have learned since HYP's launch. But, with Presstab's able and sometimes pointed assistance, I have reached the point where I could clone a coin and modify it's specs. I may even do it, for fun and with caveats that it shouldn't be used for anything serious.
That being said, my long term strategy is to pick a few I believe have merit, and try to promote them in such a way as to BREAK the <insert coin>/BTC pairing and make the coin useful in it's own right, not simply a vehicle to get BTC. I frankly do not think that BTC is all that. It's the first one, and it started a growing revolution, but from a useability standpoint, it sucks. We HAVE done better on the technical side, many times over. What's lacking is the long term vision, the marketing, the PUSH to get it mainstream. Whether or not you LIKE the morons that compose the vast majority of society, they are the ones we have to reach if we're to be successful. Joe Sixpack resists change until it runs him over. We got to be that truck, or it will not happen. I think HYP is well positioned, along with TEK, HBN, and NVC, as a reserve currency for the average person. But it's position is not solid nor well laid out yet. It's quite likely to be useful as both a savings and small transaction vehicle, since it's fast, works well, and has a high reward for holding. It has an advantage there over TEK in that the period is short enough for the impatient to see a return, and long enough to keep the impatient from being totally stupid all the time.
The four I chose were personal choices for personal reasons. But I do believe they have merit. To me, the entire rest of the altcoin world is a dalliance. This doesn't make it true, there are some serious people involved, and I'm flexible enough to change my mind if need be. But if you are solely in it for the short run or quick profits, chase the newest thing and get out quick. If you're trying to build something for the future, fuck the price. it will find it's equilibrium in the market as all things do. Is HYP undervalued? At this point in time, I would say no. When it hit 8K it was in my opinion (stated at the time) overvalued. I sold some of my stake at that time and made a tidy profit, but it had ZERO effect on my long term strategy. Now that it's trading around 200? I still sell a bit from time to time for profit and to purchase my other coins, but it again has ZERO effect on my long term strategy.
Full steam ahead eventually brings you to a wall that you can't avoid. Slow, steady, and unemotional will get you a lot farther.
EDIT: Slight modification of two sentences due to original lack of caffeine. Oops.
