Here's a question. Why should bts even be valued at 10 million? What gives it that value? It has no real world use and is actually pretty damn expensive and difficult to obtain. Can anyone tell me why it should be worth 100 million or 1 billion? Why is that number more representative of Bitshares? A small uranium company named ur-energy has a valuation of around 100 million used. They produce uranium and sell it much higher than the spot market due to long term contracts. It owns a ton of land with lots of natural recourses under the ground. The also have a large mining facility with lots of new equipment. Why should Bitshares be valued as much as this company when all it has is 6 coders not much real world use?
If we look at Facebook then each user is worth around $114, in 2013 it was $98 so the price is rising. Facebook is an advertising company so it knows exactly how much each user can be worth.
Bitshares is a bit different but the same fundamentals apply. The difference is that Bitshares is a DAC so the operating expenses vs the utility is where you can find efficiency.
Bitshares will be profitable depending on it's cash flow which means you have to look at the volume it is able to attract. The technology of Bitshares 2.0 is being designed to be able to handle the volume of the NASDAQ.
Bitshares 2.0 is a lot like what Ripple tried to be, but is better designed, state of the art, scaleable. Bitshares 2.0 can do what Ripple does, but it can also do what what most of the Bitcoin exchanges are doing. When you look at what Bitshares 2.0 offers compared to what else is out there, there is no better alternative to choose from.
Ethereum can do a lot of things but it cannot replicate the behavior of NASDAQ, it cannot allow us to trade actual shares yet. Bitshares on the other hand does allow for that, and with the right smart contract or extensions it should be able to allow for Forex or whatever else.
Litecoin at it's peak had a market cap of 700 million. Bitshares 1.0 could have had a market cap of $1 billion. Bitshares 2.0 due to it's performance capabilities, if it lives up to the hype, can easily have a market cap in the tens of billions provided that the community rallies and builds an industry around the blockchain.
In my opinion what holds Bitcoin back is the fact that the Bitcoin community does not offer an olive branch to regulators. The Bitcoin price spiked up in 2013 after the green light was given by regulators. In the end the more regulator friendly your blockchain is, the easier it will be to attract high net worth and institutional investors into your space. Bitcoin is currently hurting itself because it's not willing to offer anything to satisfy regulators, so if Bitshares 2.0 is designed so that it can form relationships with banks, with regulated capital, then the regulated dollars can flow into it.
Regulated dollars represent the vast majority of the investors. They don't want unregulated anonymous exchanges. They want regulated, government authorized, bank integrated, "prestigious" exchanges. In my opinion if Bitshares ups it's prestige and does a better job at marketing to regulated entities, prestigious institutions, risk adverse individuals who don't care about Bitcoin or privacy, then the volume will flow in and Bitshares 2.0 will become profitable.
Bitshares 2.0 should not and will not change it's design to suit regulated capital, but it should at least be compatible for future integration into regulated society. It's really the only reason Ripple is even talked about, it's the relationships with banks. Bitshares 2.x needs relationships with Forex, it needs an ability to integrate into the FIX protocol. It needs to highlight the fact that Bitshares 2.x is trying to be a semi-regulated exchange platform.
Because the market is going to be so competitive it is unlikely that Bitshares will end up with an 8 trillion+ market cap anytime soon, but it could easily end up in the tens or hundreds of billions. Bitcoin itself with all of it's flaws could end up in the hundreds of billions, and in the big scheme of things, hundreds of billions isn't a whole lot for the industry Bitshares is disrupting.
http://www.forbes.com/sites/georgeanders/2013/11/07/a-twitter-user-is-worth-110-facebooks-98-linkedins-93/
Topic: Find the difference (Read 9734 times)
