Post
Topic
Board Announcements (Altcoins)
Re: ★★DigiByte|极特币★★[DGB]✔ $250k Investment, EasyMiner, iOS Wallet, MultiSig, TipBot
by
jdczrs
on 11/02/2015, 22:08:20 UTC
how much value can one dgb have when we have 3,474,725,802 DGB atm?? I am always a bit stumped for an answer.

There is so much volume an not a "real" use atm. We can't buy a lot with DGB. The price comes from the great development of the DGB team. And that is always a little problem I think.

If we see a 500 Sat price we would have a 4 m marketcap.

and there is only bytecoin with that supply, bitshares and stellar.

Okay, I see it is possible Cheesy never mind! Will buy some more Wink

Your question has - I think - both important and complex answers.  In his Treatise on Money, Schumpteter describes a hypothetical example of a person considering the value of a car.  He writes:

"in practical terms [the point] is to clarify to himself the possible changes in car prices ... but if we look more closely, we see that determining that a car of a certain kind is worth [a certain amount] to an individual at a specific time, has much broader and deeper meaning ... it has as little to do with possible prices as with the actual prevailing price.  It means nothing more than the attempt of the individual to clarify his estimate of the use value of an automobile ... to quantify that use value."

I might suggest that your question, like many of the other posts about possible price changes, are efforts to quantify the possible changes in exchange value.  But, importantly, they are also attempts to estimate the use value of the development and management of DGB.  Clearly, the professional management and development of DGB drives investment (both in terms of community engagement and money).  We've seen evidence of that effect over the past 2 months, and I believe we'll continue to see more investment and involvement in the future.  There are many coins with higher market caps that aren't even close to the level of professional development, funding, or community involvement that DGB has; they have higher market caps simply because they've been around longer.  We are, however, now making analytical judgements about what investors describe as "differential quality" and that requires more qualitative than quantitative analysis.  In my analysis, the numbers look really good for DGB.  Simultaneously increasing average volumes and prices.  A strong volume to capitalization ratio (DOGE's average over the past month is around 0.3% ... Ripple and BTC are around 0.1% ... DGB is close to 2%).  DGB also has a tremendous savings premium over the past 3 month and 6 month time frames.  All these quantitative analyses point in the right direction.  When you additionally analyze the differential quality of the management: they actively work toward, and invest in, and fund, and directly manage the development  I think it puts DGB in a fantastic position for future growth - both growth in use and value.  But, your sort of question is super important.  It's a question that needs to be asked.  And, it needs to be asked again and again to understand, and create, and develop the value over time.

Very nice analysis, I appreciated that. I hadn't considered their volume to cap ratio so thank you for that. Crypto to me is still extremely speculative and I do appreciate the community support DGB enjoys as well as the management involvement. It made me as comfortable as I could be with the legitimate effort being made here. This sector is full of IT folks with impressive skills, idealists, and more than our share of charlatans so it took me some time to jump in.
I can say I've never had another company/investment with an owner like Jared contact me personally over a somewhat trivial support issue. He took the time to reply to me twice. Just goes to show that this team is committed from the top down.
I've only gained more respect for them.