- Jul 1, 2001
- 25,135
- 2,445
- 126
I don't know about you guys, but I collected a few cryptocurrencies during the early Bitcoin boom that are now basically worthless. I'd imagine that a few other people here have as well.
That said, I'm not sure if anyone ever officially developed a valuation model that says "Yep, that's now a shitcoin" by looking at some key metrics. For stocks, the point where a stock is considered to be worthless seems to be when it drops below a dollar and stays there for more than a month. At that point, the major stock exchanges tend to delist them, and they become "penny stocks" from then on.
This valuation model doesn't really work for some cryptocurrencies, though, because many of the successful ones have always been worth less than a dollar. Nobody in the crypto world would call Dogecoin worthless (for example), even though they are worth fractions of a penny each. There are people out there who have millions of them, which can be exchanged for real money. It's not how I'd invest my money, but there are probably a few Dogecoin millionaires out there. Coolcoin is also a bad example, because it can always be traded in for a t-shirt as long as I'm still around
So, how would you determine a cryptocurrency to be worthless? Market cap? Trading volume? Something else?
This post might be too serious for OT, the mods might want to move it. I'm not sure where, though.
That said, I'm not sure if anyone ever officially developed a valuation model that says "Yep, that's now a shitcoin" by looking at some key metrics. For stocks, the point where a stock is considered to be worthless seems to be when it drops below a dollar and stays there for more than a month. At that point, the major stock exchanges tend to delist them, and they become "penny stocks" from then on.
This valuation model doesn't really work for some cryptocurrencies, though, because many of the successful ones have always been worth less than a dollar. Nobody in the crypto world would call Dogecoin worthless (for example), even though they are worth fractions of a penny each. There are people out there who have millions of them, which can be exchanged for real money. It's not how I'd invest my money, but there are probably a few Dogecoin millionaires out there. Coolcoin is also a bad example, because it can always be traded in for a t-shirt as long as I'm still around
So, how would you determine a cryptocurrency to be worthless? Market cap? Trading volume? Something else?
This post might be too serious for OT, the mods might want to move it. I'm not sure where, though.