Author Topic: What gives BitShares value?  (Read 5424 times)

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Offline Ander

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I started thinking about it, Bitshares isn't a stock or ownership over the company that is writing this software, right?

And it doesn't have any revenue stream associated with it. Right? The delegates are the ones who get paid, right?

I'm not saying it doesn't, I'm just trying to figure it out, what gives BitShares value?

It actually DOES have a revenue stream associated with it.  Transaction fees paid by users of the network are burned (part burned, part go to referrers).  Each time BTS is burned in this way it is revenue for the Bitshares DAC.

If revenue from this exceeds payments to workers, then the DAC is profitable.  The burning of BTS acts the same way as a company's share buyback program, causing the value of each remaining BTS to increase. 

This can be valued in the same way as a ocmpany, with a P/E value and growth rate.


Of course, until it becomes profitable, the valuation is based on speculative value of future expected returns.


Almost no other crypto has this potential to be profitable and provide a return, but Bitshares does.  (There are probably a couple others, but not many).  Most cryptos are just inflating, money losing tokens.  BTS has an end goal of becoming a profitable DAC and paying money to its holders.
« Last Edit: October 08, 2015, 05:20:07 pm by Ander »
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Offline carpet ride

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need.
If bitshares can solve some real problems, then there will be some needs and bitshare has value.

The fail of bitshares 1.0 is because it failed to solve any problem.  Let us see whether bitshares 2.0 will or not.

Um, actually...



[playing devils advocate]

I might argue that these are features.  What real world problem have/can we solve with this tech? Lower payment fees relative to debit cars?  Lower ACH costs? Lower .....?
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Offline SpiritofJefferson

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I started thinking about it, Bitshares isn't a stock or ownership over the company that is writing this software, right?

And it doesn't have any revenue stream associated with it. Right? The delegates are the ones who get paid, right?

I'm not saying it doesn't, I'm just trying to figure it out, what gives BitShares value?
"

In a sense bitshares do give you partial ownership over "the company that is writing this software" because you have the ability to vote for them.  Shareholders have the ability to vote other people or companies into (or out of) developer positions and pay them. As for its value, the more people that use things like bitassets (backed by bitshares), the more shares there are that are locked up in collateral.  By buying bitshares you are saying you think more people are going to use the technology, and therefore more bitshares will be needed to account for the rise in demand for bitassets (aka it will profit you to issue a bitasset). When you issue a bitasset you will receive a sweet revenue stream of transaction fees. So it may not be a stock in the traditional sense, but you actually do have all of those wonderful characteristics. I'm not a developer or anything so someone let me know if I got something wrong. Hope it helps!

Offline Stan

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need.
If bitshares can solve some real problems, then there will be some needs and bitshare has value.

The fail of bitshares 1.0 is because it failed to solve any problem.  Let us see whether bitshares 2.0 will or not.

Um, actually...

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Tuck Fheman

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what gives BitShares value?

Memes
Developers (character/quality/activity/innovation/dedication)
Community involvement (twitter/facebook/forums/reddit/IRL)
Public Interest (likes/favs/followers/searches/attendance)
Liquidity (market share/maturity/acceptance)
Ease of Use






Offline luckybit

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I started thinking about it, Bitshares isn't a stock or ownership over the company that is writing this software, right?

And it doesn't have any revenue stream associated with it. Right? The delegates are the ones who get paid, right?

I'm not saying it doesn't, I'm just trying to figure it out, what gives BitShares value?

You do. You give Bitshares value.
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Offline xiahui135

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need.
If bitshares can solve some real problems, then there will be some needs and bitshare has value.

The fail of bitshares 1.0 is because it failed to solve any problem.  Let us see whether bitshares 2.0 will or not.

Offline monsterer

Demand. At the end of the day, that's all that gives anything value.
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Offline hughmanwho

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I started thinking about it, Bitshares isn't a stock or ownership over the company that is writing this software, right?

And it doesn't have any revenue stream associated with it. Right? The delegates are the ones who get paid, right?

I'm not saying it doesn't, I'm just trying to figure it out, what gives BitShares value?