Token Circulation on the new EOS network
There will not be 1 Billion EOS tokens on the new EOS network as there will be thousands of people who fail to register them (correctly or at all).
Let's say there will be 700,000,000 of them which is still a very large number I agree. Many people use this number, apply it to BTC Market Cap or Total Crypto Market Cap to set a "ceiling" on hopw high they think EOS can go...
But by looking at current market cap, and trying to apply a ceiling to the EOS price you'd be doing yourself a disservice.
check out this graphic showing adoption rates of new tech since 1900 Take not of where I placed the "You Are Here" marker. We are currently around 0.015% total global adoption of crypto currencies and projects as a whole.
As you can see, adoption rates skyrocket at the 10% mark and are basically not even recorded until then as the adoption isn't usually high enough to gauge correctly.
Let's look at the market cap of the industries Crypto space will disrupt:
- Social Media $592 Billion (combined)
- Facebook $434 Billion
- Snapchat $18 Billion
- Pinterest $11 Billion
- Twitter $13 Billion
- Linked In $26 Billion
- You Tube $90 Billion
Remittances $500 Billion
Global e-commerce Market $22 Trillion
I could go on and on but I think you'd be seeing where I'm going now. I didn't even go into the Financial Asset world which is well over $4,000,000,000,000,000 (4 QUADRILLION USD)
We clearly can't look at the ceiling of crypto assets based on today's top crypto assets current market cap. We need to look at the industries they will operate in and apply a reasonable market share to that in order to start looking at a ceiling...
Here's how I value EOS at more than $1k each
EOS tokens will provide businesses with the following:
- Domain Name - Real world cost of $10 per year for a good domain name (some are far higher)
- Hosting that domain name and any sub domains - Bare minimum of $25 per month
- Computational Capacity to manage transactions - Ignored from valuation
- Storage - Ignored from valuation
- Security - Ignored from valuation
- Trust-less Automation - Ignored from valuation
All I've done to come to a figure of over $1k is to add the real cost of domain purchase and hosting, and carried that over for 5 years (standard length of a strategic business plan). I could add the value of the other items listed above but frankly, most people would not be able to wrap their heads around just how valuable EOS will be to large, transaction based businesses.
I've been employed by a big 4 Bank in Australia as a Business Improvement Manager, Project Manager, Senior Manager (Information and Analytics) and I can assure you, these are real world business costs and EOS will not only reduce their costs even at $1k each, they will improve processes and customer experience at the same time (meaning increased profits)
I'm super confident in my method, it will take time for the ball to get rolling but I firmly believe that inside of 2 years we'll be knocking on the door of a $1k plus EOS valuation per token.
More than happy to incorporate new methods and understanding if anything I've stated above is incorrect or incorrectly applied, so please post your comments below