Post
Topic
Board Speculation
Re: Why is bitcoin regaining dominance?
by
Don Pedro Dinero
on 15/08/2018, 13:03:07 UTC
By the way, I think we could get a better measure for a coin's "popularity" or "value" than "market cap" if we try to measure its transaction activity. Probably Bitcoin's "dominance" would be much higher. Coinfairvalue tries something like that, but has some pretty strange valuations ...

Do you mean trading volume? It doesn’t seem to be a bad idea. That’s usually done with stocks.

That site lost my interest instantly the moment I saw BCash's "fair" value is $900 instead of the current $500.

I’ve been trying to guess how they calculate that “fair” value but bitcoin has more cap, more transactions, and a higher price than shitcoin cash and, however, according to them bitcoin is overvalued and shitcoin cash is undervalued. Can’t see the maths there. Maybe because of the price to earning ration but they are using what's used for stocks and I think it has nothing to do with cryptos.

Anyway, to calculate a “fair” value of a stock, people never use just one ratio and I suppose in the crypto market it should be done the same way.