The real value of an ICO avoid the FUD and Hype and learn to be a proper investor

in altcoins •  7 years ago 

So I am not too old in the Crypto space, though I was always a fan of technology and fintech, I come from mainstream Finance and Banking, and had my own Start-up a few years ago. One thing I knew is that all these ICOs could not run cash free forever, and this is what we are seeing right now. So I asked myself how can you actually analyse the real value of a Protocol ICO project (I avoid investing in Apps, no real or long value for me).

#Bitcoin
So thinking about value I feel BTC is overpriced, and the involvement of a more mature market as the Exchanges shows it. The value goes up because there is so much Hype about the new thing and it has a 10 years history, as a safe haven asset it will keep its value, but when it comes to usage and efficiency this is the most overvalued asset in the Crypto space. As an example I wanted to invest a few dollars into Verge, until I realized that to move 50 USD worth of BTC I was paying 25 USD of transaction fees. So who would pay with BTC in the future to buy a Pizza when the fee is more than double the Doe price...
I know is hard to think that BTC will not reach 100K, but c'mon guys unless a Sovereign Fund comes with 1BN in investments this is not going up by itself. So keep an eye and avoid projects where the utilization can't ever be close to massively accepted.

#Altcoins
Here is where I think the next BTC will happen, I am all in in alt-coins and what is most important I believe in their technologies capabilities, wehter is EOS, IOTA, ADA, or ETH all have a good project, is only a matter of they finding their niche of Market and watch them grow.
Now the real case is how to know which one is best, well I came across some users talking about network utilization and then going deeper I came across this website;

http://blocktivity.info/

![Network Activity.PNG]
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I am used to think about stocks and the company underlying real value, but when it comes to alt-coins you need to make a switch. So if the coin relates to a blockchain protocol you either want to know how many people is using this coin, what is the market cap and then how many transactions are being made with it.
The above website shows you that right now ETH is being used at its maximum potential, even after the update to the network, at press time there are 6'286 pending Txs. EVEN WORSE BTC has at press time a 100% utilization with 174K pending txs, when you go back to my point in BTC and take this into consideration, your BTC holdings starts to give you a cold sweat.
The usage of the blockchain also shows us that surprisingly #STEEM is the second in usage and even better is only 1% capacity, this means you could have not only 1M txs as now but many millions more, so at the end, for now this is the real deal, the only one that could take an usage on the level of Facebook. Also for those who like to invest into apps coins, you would maybe would like to check what protocol uses, as you see #ETH is still good but needs further development. I am hopeful that next year Eos will shake the market, and after that probably #ADA or AKA #Cardano.

To end and not to make it too worrying check on the website the AVI index they have :) (Activity Valuation Index (AVI)

I hope my humble article may be of use to you and you find real value among so many Bs projects around there.

Happy trading!

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Ether has good tech, but it has some challenges to face. To make it really usable.

The cryptokitties craze basically froze the Ether network. So in that retrospect, Steem is a few months ahead in terms on the number of transactions the network can handle.

Thanks for your comment, and yes I think the kitties show how bad it could get with a real utilization. We are still crawling regarding to the development of the technology. I think 2018 will set the foundations of the future.

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