In this article (written 6 months ago for Steemit) we are going to analyses the FUNDAMENTALS that can be used to compare cryptocurrencies. This is not as easy as it might sound and so far no “standard” exists for us crypto investors. So here we break down the different functions and modes of performance that can be analyzed more or less easily.

The main analytical topics to be examined cover “Network Value” including Transactions, Wallets and network speed (volume, depth, robustness); and then the more traditional Earnings Per Token (equivalent to EPS) for application which apply and finally Synergistic Governance Value for tokens that have governance functions.

EXAMINING THE NETWORK

ROBUSTNESS
This term refers to the maximum number of translations that can be processed per unit time. The “normal” reported rate should be in Transactions Per Second, but its uses may vary depending on the analysis being conducted.

VOLUME
This term refers to the actual number of transaction that happen per period of time on the network. The “normal” reported rate should be Transactions Per Day, but its uses may vary depending on the analysis being conducted.

DEPTH
This term refers to the number of wallets that either exist or are in use on the token/coin program over the last years period.

EARNING per TOKEN
This term refers only to tokens that are part of a business design where the tokens have a “securities” aspect to them and or dividends that are paid out for holding the token.

SYNERGY
This term applies to Token/Coins that have a GOVERNANCE aspect. To the extent that having a vote on the governance of one token assist the viability of a different token then that synergy can have a multiplicative affect on Token Value.

And we will keep our eye’s and mind’s open to new concepts that need to be considered in future Reports.

The DAO Funds FUNDAMENTALS Chart

Coin/Token  |  Robust  |  $Vol-CoinVol  |  Depth  |  MrktCap  |  EPT  |  Synergy

EOS           |    1,000+ |        n/a            |   277,608   |    $5.7B   |   n/a     | Possibly Many
     ETH           |         25   |     $1.9B-2M     |    27.8M    |      $84B   |   n/a     | Possibly Many
    Steem         |       10K+ |    $6.1M-2M    |      500k    |     $816M | 20-60%| Possibly Many
   Monero       |    1,000+ |    $97M-275K   |     500K?  |      $5B     |   n/a     |       n/a
   BitCoin        |          3    |    $7.7B-702K    |       2M     |     $186B   |   n/a     |       n/a
? = no source : n/a = not relevant currently

ANALYSIS of FUNDAMENTALS

Robust vs Market Capitalization
The simple formula is MC/R giving the relative unit token cost of the network (cap) per transaction per second. For our sample of coins we get (the larger the Capitalization per transaction per second, the more expensive the network is to own ):

EOS = $5.7M
ETH = $3.36B
STEEM = $81.6K
MONERO = $5M
BitCoin = $62B

Then ranked by relative multiples:

STEEM relative ranking 1
MONERO relative ranking 3
EOS relative ranking 3
ETH relative ranking 14
BitCoin relative ranking 30

USAGE VALUE
Here we relative order the Coin/Tokens based on real life usage as calculated by transactions per day in both $ and in Token Volume:

     $ Volume:
BitCon relative ranking 1
      ETH relative ranking 2
      MONERO relative ranking 9
      STEEM relative ranking 35
      EOS = n/a

     Token Volume:
STEEM = 1
      ETH = 1
      BitCoin = 3
      MONERO= 7

AVERAGE BALANCE
We can calculate an average balance per wallet by dividing the MarketCap by the number of wallets and relative rank them. This gives a good indication of public acceptance.:

BitCoin = $93,000 rank 1
MONERO = $10,000 rank 3
EOS = $4,000 rank 5
ETH = $3,022 rank 6
STEEM = $1,632 rank 8

INDIVIDUAL USAGE
We can judge how much individual use their cryptos by dividing the daily $ Volume by the number of wallets and then relative rank them:

BitCoin = 3,850 relative rank 1
MONERO = 194? relative rank 4?
ETH = 63 relative rank 8
STEEM = 12 relative rank 18

Then we have the same but with Token Volume:

STEEM = 4 transactions for 1 wallet relative score 1
MONERO = 1 transaction for 2 wallets relative score 3
BitCoin = 1 transaction for 3 wallets relative score 4
ETH = 1 transaction for 14 wallets relative score 7

FINAL RANKINGS
Using our propitiatory ranking system we arrive at (lower values are better) these RELATIVE values (these are NOT US$ values and we do not suggest a proper dollar value):

MONERO = 29 relative rank 1.0
EOS = 35 relative rank 1.2
ETH = 38 relative rank 1.3
BitCoin = 40 relative rank 1.4
STEEM = 64 relative rank 2.2

With adjustment for positive Synergies of a Tokens, negative aspects of speculations on Coins with “n/a” and positive aspects of others with dividends, we end up in this order:

EOS = 1
ETH = 1.3
MONERO = 1.5
STEEM = 1.7
BitCoin = 2.1

Portfolio Diversification Strategy based on Fundamentals:

CONSERVATIVE                                AGRESSIVE  

26% EOS                                                     30% EOS
       22% ETH                                                     23% ETH
       20% MONERO                                           20% MONERO
       18% STEEM                                                 17% STEEM
       14% BitCoin                                                10% Bitcoin     

(This is NOT financial advice, this is merely a comparison of these 5 Coin/Tokens and their fundamental attributes)

STEEMIT  –    6 months ago      by i-am-mark (44)     $9.18        18 votes         Reply 16

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Responses

    1. TRUTH(@i-am) Post author

      EOS, Monero and BTC are all looking good since this article (aka leading the market). But I think eventually BTC will slowly fade to a background coin, it will always be there, and always stable, but it will only be like Gold, with not much interest as it does nothing special,,,, like say Monero which allows you to keep your Account BALANCE PRIVATE,,,,, or EOS that runs a multitude if Dapps etc. Just wait till something like the TRMS catches on,,, people can’t even understand what a great change in paradigm is possible,,,,

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  1. SouthernCrossroads

    That is a interesting write up of relative value. I was wandering what I would do with half a bit Coin I had for investing in some market. I will take a harder look at my cost/ benefit analysis using these calculations. I would challenge that Bitcoin will fade, I was bullish on ethereum, but considering there recent complications and competition from EOS and Tron, I really think ethereum will fold to its competitors before Bitcoin. The main reason is Bitcoin is the father of crypto and realistically there are only 12 to 16 million in circulation. If crypto really takes off its scarcity will create value. Ethereum had smart contracts, but there are cryptos now doing smart contracts better, faster, and cheaper so what does Ethereum really offer other than a platform for the tokens built of its chain.

    I think two tokens to watch are Tron and Coda. I think Tron is planning a revolutionary means of authenticating transactions and distribute information with the bit torrent platform. Coda is also looking at a decentralized POW concept that will allow mining but prevent centralization of mining. I’m not sure where these ideas are going, but like IOTA they are looking at Bitcoin and ethereum and thinking outside the box for solutions to weakness that have been identified in both chains. Wherever it goes, I think it’s going to change the markets enormously.

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