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An economic comparison of payment coins, who is winning the race?

Commerce coins compared

Last week I created the Commerce Index as a means to measure a coin’s suitability for general commerce. In a nutshell it tracks the property of liquidity and low volatility.

Both consumers and merchants want a currency that is stable and has high enough liquidity at the exchanges such that converting into and out of that coin does not incur high fees.

This graph compares the Commerce Index of some more notable coins that are aiming for use in payments.

Continue reading An economic comparison of payment coins, who is winning the race?

I have a lot of brain-farts on crypto-currency. For more farting, follow me on Twitter @dangermouse117

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Crypto-currency Index Funds, the simulations have surprising results

Bitcoin vs Index Portfolio of top 10 alt-coins. Bitcoin 4.6x vs Index 1.2x

This year, the idea of managed portfolios and index fund portfolios has been on the rise, you can bet on many hitting the market in 2017. It’s a popular idea borrowed from Wall Street. For stocks 99% of index funds, namely a fund that buys the entire market passively, outperform actively managed funds.

Sounds like a great idea for crypto-land right?

I’ve been running simulations in the alt-coin markets to see if this is true. If so it would be prudent to diversify across many alt-coins as a higher performance investment over Bitcoin.

The results are surprising.

Continue reading Crypto-currency Index Funds, the simulations have surprising results

I have a lot of brain-farts on crypto-currency. For more farting, follow me on Twitter @dangermouse117

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Bitcoin Market Cap should be $40b according to Metcalfe’s law

Metcalfe’s Law states the value of a network is proportional to the number of members squared.

I thought it’d be fun to run the numbers on the Bitcoin Network.

Since we don’t have solid figures on the number of active users on the network, I’ve had to use network transactions** as a proxy to active users.

** Network transactions per day excluding long chains (e.g. produced by bitcoin mixers)

Bitcoin Market Capitalisation correlated to Metcalfe's Law

Continue reading Bitcoin Market Cap should be $40b according to Metcalfe’s law

I have a lot of brain-farts on crypto-currency. For more farting, follow me on Twitter @dangermouse117

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Analysis of Dash’s valuation as a function of transaction volume

dash-logo

Dash’s focus is a payment network so transaction turnover will be key. Let’s run some numbers to figure out transaction turnover and market cap valuations…

This is Bitcoin’s transaction turnover as a function of their market cap:

Bitcoin transaction turnover vs market capSource: https://twitter.com/dangermouse117/status/771387879117430784
Source Data: http://bit.ly/2ccjMDI

Continue reading Analysis of Dash’s valuation as a function of transaction volume

I have a lot of brain-farts on crypto-currency. For more farting, follow me on Twitter @dangermouse117

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Block size debate : Increasing block size for capacity won’t work

Bitcoin’s blockchain is like a telephone party line, it’ll work for a village but it won’t when it scales to the world.

Pundits are debating whether we should increase the block size indefinitely to allow more capacity on the network. Well I guess it’s time to take an analytical approach…

Here’s the block size over time on a log scale.

Blockchain size over time

Continue reading Block size debate : Increasing block size for capacity won’t work

I have a lot of brain-farts on crypto-currency. For more farting, follow me on Twitter @dangermouse117

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Who will win the anonymous alt-coin battle?

Since the recent explosion of Monero, it seems privacy-centric coins are all the rage right now. So I’ve been thinking a lot about anonymous coins of late…

Moner 2016 price breakout

Continue reading Who will win the anonymous alt-coin battle?

I have a lot of brain-farts on crypto-currency. For more farting, follow me on Twitter @dangermouse117

BTC Tips: 1KrYzd8y6gnJekibZpb4ixif4nJYbaaZct

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