When people look at cryptocurrency prices, they usually look at prices from data sites like Coinmarketcap.com that attract the spot prices of digital assets aggregated by trade around the world. Now there is another site of market capitalization that could be of interest to people, called Coinfairvalue.com, a platform different from normal data sites because it measures fair values without any implicit speculation.
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This website highlights cryptocurrency and fair value
Coinmarketcap.com (CMC) and the variety of other price data websites are common places that people love to visit to find out the value of their favorite cryptocurrencies. Most websites like this aggregate all spot prices of trades around the world and find the median average. This is why sites like CMC prices are different than when an individual observes the feed from a single stock exchange. Now there is another site called Coinfairvalue.com (CFV) that lists the best cryptocurrency assessments, but instead of using aggregated spot prices measure fair values based on the current use of each currency. Basically, the website is based on the model " Currencies Fair Value " published by Pablompa in 2017, explains the creators of CFV. The Pablompa model evaluates the compound fair value by measuring the effective use of the real world using publicly available blockchain data.
"Our market capitalization differs from market capitalization at other sites because we do not make the artificial distinction between supply and rolling stock," explains the CFV website.
Let's just say: the fact that the founders hold a part of the supply does not make their part of the supply less circulating than a part of the supply held for years by an investor. The "static" offer is reflected in the Velocity of Money. The more the "static" supply within the total supply, the lower the speed – so the greater the tendency to contain savings.
A completely different look at the top of cryptocurrencies
CFV data are interesting for many reasons and one of these is because the first two currencies are USD and EUR, which are usually not included in other market cap websites . The USD has the fair market value (FMV) of $ 1 per unit, while the EUR has an FMV of about $ 1.12 per unit at the time of writing. Both currencies have market capitalizations of over $ 12-14 trillion dollars and the market capitalization of the USD is 12.903% higher than BTC $ 109 billion, according to CFV. The creators of the website believe that USD and EUR should be included because the legal currencies have an uncertain future offer function. But the CFV notes that data are scarce when it comes to the number of exchanges in a given period and a given fiat, and "the consequence is that there is little clarity on their fair value."
The first five cryptocurrencies are very different from the values recorded on websites such as CMC. Bitcoin core (BTC) prices, for example, are around $ 6,360 per coin at the time of printing, but the FMV value of the currency on Coinfairvalue.com is $ 4,559. The second highest market capitalization held by ethereum (ETH) today is $ 360 for ETH, but the CFV data suggest it should be worth more at $ 534 per coin. Usually, ripple (XRP) occupies the third position, but on the CFV site, bitcoin money is the third coin with the highest value. BCH spot prices today are around $ 594, but CFV has a fair value at the price of $ 923 per BCH. Ripple (XRP) should only be $ 0.13 per currency, rather than the now over-valued spot price of around $ 0.44 according to the website. EOS prices on CFV say that EOS is undervalued and should be worth $ 2.40 per coin more than the current market price of $ 6.
Another list called "Honest Coinmarketcap" and the Rational Behind the Currencies Fair Value model
sure to be controversial for some supporters of cryptocurrency, but there have been many attempts to create more realistic data on the coin market. Just recently, news.Bitcoin.com reported on a spreadsheet created by Andrew Rennhack who calls "Honest Coinmarketcap." Rennhack's aggregated data is based on global cryptocurrency volumes because the researcher supports the vast majority of BTC and ETH volumes are fake. Using parts of the Valute Fair Value model, the creators of the CFV website believe that their data is rational.
"It comes to the rational conclusion that currencies must be traded at their proper value when the number of speculative exchanges in the same currency is negligible compared to the total number of total trades conducted using the same currency as an instrument, as in the case in where someone trades BTC for BCH because he thinks BCH will perform better, "details on Coinfairvalue.com.
Also comes to the conclusion that even when the number of speculative exchanges is not negligible, and the aggregate number of speculative exchanges is also impartial and cancels, then this indicates that the currency must be traded at its Fair Value – With this in mind , while the graphs are analyzed, it is indeed possible to determine how much speculation has occurred.
What do you think of the Coinfairvalue.com price estimates? Let us know your thoughts in the comments section below.
Images via Shutterstock and Coinfairvalue.com.
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