Post
Topic
Board Announcements (Altcoins)
Re: [ANN] FACTOM - Introducing Honesty to Record-Keeping
by
D-Lux
on 31/05/2017, 20:22:06 UTC
Usage will undoubtedly be the main yardstick to measure FCT’s success. The base price of FCT will be directly proportionate to its usage, meaning that the price can’t fall below this point without reducing the available FCT supply, ultimately, to 0. More about this is here:

https://www.reddit.com/r/factom/comments/4zxi6e/fct_ec_and_the_factom_financial_ecosystem/

So usage provides a “base price” for FCT, below which it can’t drop without exhausting the available supply. The base price, however, doesn't take into consideration speculation, which in public markets is usually around 10-15x—crypto's rough equivalent to the P/E ratio—of the base price. Though early-market "startups" like Factom often go magnitudes higher depending on market sentiment and expectations for growth. Even mature companies often reach magnitudes of value above their early earnings, for instance Amazon=847x, Netflix=282x, etc. And these are mature companies, with much more limited growth potential.