How to measure Cryptocuyrrencies during this info Jungle!
The post is in German, however essentially she has been informing herself concerning cryptocurrencies for 2 months currently, nonetheless it all seems like a jungle to her. that the question is: however will we recognize what to travel once during this rummage around for profits .
I selected to use this image of a lion I took within the Nilotic Mara in Kenya as a result of she is presently staring at her prey making an attempt to work out the way to build a kill.
Every step she takes and call she is creating is essential for achievement. As AN capitalist I feel identical manner concerning the cryptocurrency market. therefore let Pine Tree State tell you a number of the thoughts I actually have.
Ivonne is asking 2 excellent questions:
Do we have to be compelled to judge cryptocurrency otherwise
What area unit the factors of analysis
Keep it easy
To Pine Tree State live is often easy and having a really basic model and framework is often vital to be able to navigate with success. per se there {are|ar|area unit|square Pine Tree Stateasure} solely 2 things that area unit relevant to me on the best level once creating investment decisions:
What is giving this project/coin/blockchain price
Price action: What do the charts seem like and in what quite market area unit we tend to at the instant
If I cannot puzzle out what offers something price or wherever this price is returning from then I actually have either not created my preparation properly, or I actually have mis-judged the chance or the issue shouldn't be invested with in as a result of it in all probability doesn't have price.
Even if a project is wonderful I don't need to enter into an edge if it's at the highest of a bubble. once a coin crashes ninetieth once I die are going to be laborious on behalf of me to form winning investments. Instead I ought to decide it up once such dips and so profits ought to come back abundant easier. Likewise the market as a full is commonly in an exceedingly bull or securities industry and such ought to be taken under consideration before coming into positions.
When we listen on TV to consultants and therefore their opinion concerning crypto we frequently hear one camp advocating for the "groundbreaking technology" and the different facet business it "just another bubble".
The issue is to grasp that not one or the opposite isn't mechanically right and wrong, however that each is also right. In such a case it might be crucial to speculate at the proper time.
We need new metrics
Sorry however there's not mechanically a profit, cashflow, P/E ratio etc. that you just will use to work out if the value is correct. If this was a simple market everybody would be in it and you'd not be able to get 100x returns inside one year (i.e. like ETH went from $8 to over $1400 in concerning one year).
These metrics might not exist in order that you've got to create them or generally even metrics might not tell the total story. have faith in Apple in 2007, once the iPhone was fictitious. If you were extremely sensible you'll have accomplished that this might amendment the whole phone market and alter what the web are going to be. but there's not extremely a mathematics formula that you just use to come back to such conclusion. you need to use your intelligence and skill. That neural network within your head.
Respect the character of this technology and limitations of your brain
The truth is that such revolutionary technologies do not come back around that usually. I in person believe that blockchains area unit a brand new invention of organization that enable U.S.A. to be production in an exceedingly entirely new context. Such happens terribly terribly seldom and as a result we tend to don't seem to be custom-made to upset it.
As a result several wall street analysis and television personalities cross-check the bitcoin charts and apply their customary analysis patterns to that. which will add some ways however misses the large image at identical time. we tend to area unit custom-made to ascertain everything in patterns and reference everything with something. that's however our brain works. And in nature this works well as a result of it adapts over immeasurable years and typically doesn't amendment significantly.
In different words naturally we tend to don't seem to be terribly custom-made to managing things we do not recognize. At identical time we tend to as a species area unit the one that has learned to adapt the foremost. we want to use those skills to vary our frame of reference as agile as doable to quickly learn what this can be and the way it works. For this we want to be terribly open minded as a result of the connections won't be apparent to U.S.A., as a result of we've got ne'er seen and drawn them.
So whereas keeping the soft factors in mind here area unit some metrics i favor to use:
The Mayer Multiple
Transaction volume
Chatter like traveler cluster activity, forum users, and twitter activity
Transaction volume (relative within)
Growth (relative within)
Criteria of analysis
I think that however we tend to judge things should be specific to a project. i believe we might judge bitcoin, ethereum and steem terribly otherwise.
Maybe bound coins that contend in one markets will be evaluated equally i.e. eos, ada, lsk and Eos etc. or all the privacy coins then forth, however overall it's vital i believe to seem at these items evolve singly.
Once this house is older this could amendment except for currently i believe perceive their price can usually be distinctive, a minimum of for the comes that matter.
Our Panthera leo conjointly has to notice her specific path to success.
That aforesaid we will seek for a couple of general things:
What is the mission (how is that this issue reaching to amendment the planet for the better)
Design: however is that this mission accomplished technologically. area unit all the proper parts offered that's needed to achieve success. is that this resolution comprehensive or will it solely solve components of the matter.
What is the team: area unit there capable folks driving he success and what's the motivation structure that supports smart performance. Do they need a roadmap and vision?
Innovation: will this be refrained from a blockchain and area unit the new benefits from blockchains leveraged in an exceedingly new manner that others don't. Is there some copy cat occurring or is that this true innovation. If stuff is traced is that the rest innovative enough to form it viable. will this need an organization and may not truly be crypto project?
Coin and incentive structure: will the coin system support everything, drive the mission and keep it all at once or is it simply a get made theme for an organization or founders?
Infrastructure and aboarding: Is there some infrastructure in situ to permit users to onboard or incentive structures which will market the coin and keep it growing?
These area unit simply examples and will have to be compelled to be adjusted, however is also a place to begin to investigate if one thing has price
Summary
As you'll be able to see I don't have a customary manner of analyzing crypto comes. however there area unit some things I seek for. within the finish but it comes all the way down to do i think this can be a very viable project or issue that may amendment the planet. And if therefore once could be a experience to urge in.
I think nice|the nice} news is that we've got such a lot innovative energy during this house that heaps of really great things area unit being engineered. And with this volatility there area unit invariably opportunities to search out smart entry points to enter in addition as taking some profits.
Our Panthera leo was sure-fire and killed a equid. The higher than is that the same lion all thrice and that i was lucky to be able to shoot her at the beginning throughout and once the hunt.
I would like you abundant success in your endeavors in addition.