How I Came to Value EOS at Over $1,000 Per Token

in eos •  7 years ago  (edited)

Token Circulation on the new EOS network
There will not be 1 Billion EOS tokens on the new EOS network as there will be thousands of people who fail to register them (correctly or at all).

Let's say there will be 700,000,000 of them which is still a very large number I agree. Many people use this number, apply it to BTC Market Cap or Total Crypto Market Cap to set a "ceiling" on hopw high they think EOS can go...

But by looking at current market cap, and trying to apply a ceiling to the EOS price you'd be doing yourself a disservice.

check out this graphic showing adoption rates of new tech since 1900 Take not of where I placed the "You Are Here" marker. We are currently around 0.015% total global adoption of crypto currencies and projects as a whole.

As you can see, adoption rates skyrocket at the 10% mark and are basically not even recorded until then as the adoption isn't usually high enough to gauge correctly.

Let's look at the market cap of the industries Crypto space will disrupt:

  • Social Media $592 Billion (combined)
    • Facebook $434 Billion
    • Snapchat $18 Billion
    • Pinterest $11 Billion
    • Twitter $13 Billion
    • Linked In $26 Billion
    • You Tube $90 Billion
  • Remittances $500 Billion

  • Global e-commerce Market $22 Trillion

I could go on and on but I think you'd be seeing where I'm going now. I didn't even go into the Financial Asset world which is well over $4,000,000,000,000,000 (4 QUADRILLION USD)

We clearly can't look at the ceiling of crypto assets based on today's top crypto assets current market cap. We need to look at the industries they will operate in and apply a reasonable market share to that in order to start looking at a ceiling...

Here's how I value EOS at more than $1k each

EOS tokens will provide businesses with the following:

  1. Domain Name - Real world cost of $10 per year for a good domain name (some are far higher)
  2. Hosting that domain name and any sub domains - Bare minimum of $25 per month
  3. Computational Capacity to manage transactions - Ignored from valuation
  4. Storage - Ignored from valuation
  5. Security - Ignored from valuation
  6. Trust-less Automation - Ignored from valuation

All I've done to come to a figure of over $1k is to add the real cost of domain purchase and hosting, and carried that over for 5 years (standard length of a strategic business plan). I could add the value of the other items listed above but frankly, most people would not be able to wrap their heads around just how valuable EOS will be to large, transaction based businesses.

I've been employed by a big 4 Bank in Australia as a Business Improvement Manager, Project Manager, Senior Manager (Information and Analytics) and I can assure you, these are real world business costs and EOS will not only reduce their costs even at $1k each, they will improve processes and customer experience at the same time (meaning increased profits)

I'm super confident in my method, it will take time for the ball to get rolling but I firmly believe that inside of 2 years we'll be knocking on the door of a $1k plus EOS valuation per token.

More than happy to incorporate new methods and understanding if anything I've stated above is incorrect or incorrectly applied, so please post your comments below

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Great post Simon. We at Community News hope you are right.

Thanks guys :-)

I've been actively searching for anyone who can refute what I'm saying, nothing yet... I'm backing this one like nothing I've ever backed before!

I am as excited about the potential of EOS much the same as you! It is by far the most under rated project in the blockchain market. their new model for ICO (Everipedia) is the smartest combination of legally sound moves i have seen in this space. for those interested, i edited a video about EOS in Dan's own words.

https://steemit.com/eos/@realitybytes/eos-as-explained-by-dan-larimer

I really hope your right! My more short term price prediction is $20 by March. How do you see it going from $20 to $1000 so quickly because I also believe that it's gonna take off once it launchers.

Personally I think that once it launches, end of next year from my understanding, we will be seeing such a mass adoption curve like no other. Block one has a billion dollars that they are spending on DAPPS for the blockchain when it goes live so that they hit the ground running with the apps already. I think 2 years could be very possible - great article Simon.

$20 as a speculative bet prior to launch, $100 shortly after when people see what it really is and then $1,000 as the real demand from real business enters the space.

A very interesting idea for business on the Internet, a package of services at an optimal price plus fewer problems for starting a business. If the project is launched, there will be a lot of people willing.

Launch is ahead of schedule. They have announced it will launch with over 1,000 Dapps already live!

On a much debated question on the genesis block, anyway know what the situation is with the 1,000 Dapps, will many/some/all of them be using the genesis block which contains our frozen tokens or will they be creating their own like Xenon?

Apart from the financial benefit - I am investing quite a nest egg for myself, I cannot wait for how EOS is going to revolutionise governance in Africa. It's going to be such a radical shift and change for the betterment of many African's lives who truly need it.

$1000 a token would put EOS at a market cap just over $600 billion and I think that’s certainly possible. Might take a few years but the sky is the limit for a technology that is going to revolutionise everything. #danstheman

and to all this you can add speculation of people hodling EOS to benefit from all the EOS airdrops

Exactly, and this is just the beginning. Imagine this touching, insurance, annuities, real estate and property in general. EOS!!