Post
Topic
Board Announcements (Altcoins)
Re: [ANN] FACTOM - Introducing Honesty to Record-Keeping
by
D-Lux
on 06/10/2016, 22:20:24 UTC
And I believe it's even possible that the marketcap of Factoids could be above the value of the company.

Without a doubt. Because developers can use Factom's technology without any assistance from Factom Inc, there is incredible value there. Considering the lack of inflation and burning of tokens upon use, it has THE best economic model of all cryptos (at least until M3).

Yep, I pretty sure FCT’s market cap will grow faster over time than Factom Inc’s valuation (though I think both will do extremely well).

For instance: Imagine if G-mail were distinct from Google. Then imagine if G-mail had “invented” email as an open-source project, and then established G-Mail as their business entity. In this analogy, investing in G-mail is roughly equivalent to investing in Factom Inc, and investing in FCT is roughly equivalent to investing in … “email.”

It makes sense that initially, more money will be funneled to Factom Inc than to FCT (Factom Inc has the high-profiles clients and partnership, while use of the protocol is only starting to take off). However as products and services using the Factom protocol become more targeted and efficient, the fees for developing those products/services should be outpaced, at an increasing rate, by the fees collected by the Federated Servers maintaining the protocol. This in turn means that FCT’s growth should outpace Factom Inc’s growth—or put another way, that FCT’s market cap should outpace Factom Inc’s valuation.

Another consideration: FCT has a monopoly on the FCT market (obviously), but Factom Inc will inevitably have competitors as others learn how to develop their own products/services using the Factom protocol.

But again, this isn’t to disparage Factom Inc in the slightest—both FCT and Factom Inc. are the investments of the decade, in their respective markets, IMO.