I continue to hear about the "Top Cheap Coins that are going to make you rich in 2018", and it scares me. As a result I wanted to share TenX's clear, cogent and concise, answer to the question of price vs. value.
In the linked video Dr. Julian Hosp, co-founder of TenX, argues that crypto is the future, but we are in a bubble and most coins will die when that pops. He provides a warning to closely consider the value of a token and even includes some metrics by which to measure that value, including:
Metrics for Measuring the Value of Cryptocurrency:
- Does it serve a purpose?
- Does it have utility?
- Is the coin unique?
- Is the development team talented and capable?
- Are they future oriented?
"I am one of those proponents that thinks the entirety of the [cryptocurrency] ecosystem is not in a bubble but the majority of the tokens and coins in this ecosystem are in a huge bubble, and this bubble is going to completely compress and money will go into those coins and tokens that actually have value. And at the moment, I think its less than 1% of the 1,500 coins and tokens that actually have value, so I'm talking about 10-15 coins, that actually serve a purpose, serve utility, are unique, have a great development team, and are future oriented."
-J. Hosp
"So I can't just go and invest blindly in Bitcoin and Ethereum, and all these tokens, believing that just because the entire ecosystem is going to, I dont know, 100 fold over the next years, that my money is going to 100 fold, because here's the question, what's the value of one Bitcoin?"
He's right, we need to ask ourselves this question, what is the value of the project I am putting my money into? What purpose do they serve, does the token have utility, is that use-case unique, is the team capable and talented, and is the project and team looking towards the future in terms of hurdles that may arise, preparing themselves for success?
If you assess your investments on these metrics, and if after your due diligence you have faith in that token, great, buy it, but if you do not want to put in the effort to research the value of your investment, then please understand you are gambling, not investing.
Dr. Julian Hosp, TenX Co-Founder: Value vs. Price
If you enjoy the content be sure to like and subscribe to TenX on Youtube, they post regularly on a wide range of topics which add value to the crypto community. As you can see they tackle a range of topics, not simply their own project.
Also if this is the first time you have read one of my posts, consider following, I post regularly about cryptocurrency, technology, religion, and also about my family and life.
Have an awesome day!