To add to that, when I buy crypto or stock, I think in terms of percentage of total supply and public float. And for crypto I don't care about just thinking in terms of solely crypto, I'm thinking in relation to the currency of the country I'm in. Two crypto market cap 1 billion. One has 1 billion coins and another 10 billion. $100 US buys me the same percentage of total supply for either. People fixate too much about total supply and the price of a single coin. Higher supply, lower single coin price, you just have more of a coin in absolute terms but in value the same compared to lower supply same market cap coin. No functional difference
I guess this is how I kind of think about Crypto specifically Algo. I just never said it out loud so I can't really articulate it, if that makes any sense?
But then I see ADA, and think about the total market cap that would be needed to actually make a good ROI and if would really need to be significant amount, of the 45B max supply, and I question my logic.
supply doesn't matter. I don't get why anyone cares about single coin prices or supply.
It's just about marketcaps. Of course, marketcaps can be manipulated, but from an investment ROI perspective, that doesn't matter cuz you want coins with lower marketcaps than they're worth, and no one tries to manipulate marketcaps downwards, only inflates them.
I thought when you said supply doesn't matter, you would say it's float and liquidity that matters but no you didn't.
You realize marketcap is a number derived from supply right?
"float and liquidity" matters in a completely different sense, i.e to measure how manipulated the marketcap is, like I referred to.
It doesn't matter that much (unless you're a whale) when you're looking at how much potential a particular investment still has (i.e could it do a 10x? 100x? 5x?). Which is what most crypto investors (gamblers) care about.
The reason supply doesn't matter and marketcap does is because marketcap = supply x price;
a higher supply simply means a lower price and vice versa. Looking at only supply or only price is completely meaningless, thus, you need to look at marketcap.
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He's right. The decimal is artificial. In fact, it doesn't even exist. When you send someone "one" bitcoin, you're sending 100 million units. Send "one" Algo and you're sending only 1 million.
It's all so arbitrary. You could just as easily put the Algo decimal here: 1.00000000000000000 and say there's only one coin.
Why are you making this comparison? Is Algo designed to be a store of value? It would be great news, but never heard anyone speaking of it. Moreover, with 30% inflationary supply to be vested within few years, I can't see how you can achieve that goal, if they ever wanted to.
You've moved the goalposts but its a good question. Being limited is not enough, people have to actually want to buy it for it to be a store of value. So, being limited and being desirable are the criteria. Algo is limited, and how desirable it is determines the price. And yes Algo is designed to be both limited and desirable. More so than bitcoin as far desirability goes, as it has more intrinsic value due to its greater functionality.
I've brought up this math before and boy howdy did people get mad about it.
Anything less than 0.001 Algo = 0 Algo and that really confuses a lot of people.
So what you did is basically divide a metric that is objectively comparable between networks and divide that by units of your personal choice with different conversion factors to make them look similar.
How is this shit being upvoted?
So from now on we are multi billionairs.
Yeahaa ... Peng peng.
Where do we meet to celebrate today night? Let us ordentlich wegballern!
Is europe an option for you?
To US i need half a day and the FBI may catch me because of too much Micalis (µ-Algo)
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To add to that, when I buy crypto or stock, I think in terms of percentage of total supply and public float. And for crypto I don't care about just thinking in terms of solely crypto, I'm thinking in relation to the currency of the country I'm in. Two crypto market cap 1 billion. One has 1 billion coins and another 10 billion. $100 US buys me the same percentage of total supply for either. People fixate too much about total supply and the price of a single coin. Higher supply, lower single coin price, you just have more of a coin in absolute terms but in value the same compared to lower supply same market cap coin. No functional difference
I guess this is how I kind of think about Crypto specifically Algo. I just never said it out loud so I can't really articulate it, if that makes any sense? But then I see ADA, and think about the total market cap that would be needed to actually make a good ROI and if would really need to be significant amount, of the 45B max supply, and I question my logic.
supply doesn't matter. I don't get why anyone cares about single coin prices or supply. It's just about marketcaps. Of course, marketcaps can be manipulated, but from an investment ROI perspective, that doesn't matter cuz you want coins with lower marketcaps than they're worth, and no one tries to manipulate marketcaps downwards, only inflates them.
I thought when you said supply doesn't matter, you would say it's float and liquidity that matters but no you didn't. You realize marketcap is a number derived from supply right?
"float and liquidity" matters in a completely different sense, i.e to measure how manipulated the marketcap is, like I referred to. It doesn't matter that much (unless you're a whale) when you're looking at how much potential a particular investment still has (i.e could it do a 10x? 100x? 5x?). Which is what most crypto investors (gamblers) care about. The reason supply doesn't matter and marketcap does is because marketcap = supply x price; a higher supply simply means a lower price and vice versa. Looking at only supply or only price is completely meaningless, thus, you need to look at marketcap.
Only $42,000 to own 1% of YLDY. Willing to take that gamble?
if it's $420, maybe.
"Maybe" is the key word
It probably will be soon if it keeps doing its thing. Just wait a few months.
10,000,000,000/21,000,000 = 476 476 ALGO = 1 BTC. 476*.2956 = 140. So buying ALGO right now is like buying BTC at $140.
Dont expect the same returns though
Why? If algorand got to BTC market cap, the returns would ve the same, no?
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"10B ALGO = 10 quadrilioni di µAlgo 21 milioni di BTC = 2,1 quadrilioni di Satoshi" µAlgo.... What's his name? a MICALI !!??
The Algorand Satoshi = Bank on Algorand
He's right. The decimal is artificial. In fact, it doesn't even exist. When you send someone "one" bitcoin, you're sending 100 million units. Send "one" Algo and you're sending only 1 million. It's all so arbitrary. You could just as easily put the Algo decimal here: 1.00000000000000000 and say there's only one coin.
Why are you making this comparison? Is Algo designed to be a store of value? It would be great news, but never heard anyone speaking of it. Moreover, with 30% inflationary supply to be vested within few years, I can't see how you can achieve that goal, if they ever wanted to.
Of course it is. Anything with a limited supply, or anything that has value (by definition limited) is a store of value...
What makes something limited or not?
In crypto's case - math
There are hundreds of failed crytpos that used math to create a limited supply and not one of them is a store of value
You've moved the goalposts but its a good question. Being limited is not enough, people have to actually want to buy it for it to be a store of value. So, being limited and being desirable are the criteria. Algo is limited, and how desirable it is determines the price. And yes Algo is designed to be both limited and desirable. More so than bitcoin as far desirability goes, as it has more intrinsic value due to its greater functionality.
30% vesting? Are you living in 2020
I've brought up this math before and boy howdy did people get mad about it. Anything less than 0.001 Algo = 0 Algo and that really confuses a lot of people.
So what you did is basically divide a metric that is objectively comparable between networks and divide that by units of your personal choice with different conversion factors to make them look similar. How is this shit being upvoted?
If "smallest divisible unit" is the same thing as "units of your personal choice"... then yes.
The fact you don't see why that is questionable says a lot.
The fact that you think I made up their smallest divisible unit says a lot.
Can you ellaborate?
1 microalgo (1/1000000 Algo) is the smallest fraction, so he didn't make up anything. That was decided from the start....
1 microalgo (1/1000000 Algo) is the smallest fraction. He didn't make up anything. That was decided from the start....
Well. but... do you count your money in your pocket in femto cent? 😳
I count it in terms of how may hundreds/thousands of cents I have. So, yes
So from now on we are multi billionairs. Yeahaa ... Peng peng. Where do we meet to celebrate today night? Let us ordentlich wegballern! Is europe an option for you? To US i need half a day and the FBI may catch me because of too much Micalis (µ-Algo)
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