Cardano - each ADA is really worth $429.13 RIGHT NOW... here's why

You can’t compare 1 Bitcoin to 1 ADA, and here’s why.

The smallest amount of BTC you can buy is 0.00000001 btc

The smallest amount of ADA you can buy is 0.000001

So to say there are 23 million Bitcoins and 25 Billion ADA is actually incorrect. To accurately compare the two currencies you would have to say that there are:

25,000,000,000,000,000 ADA
2,300,000,000,000,000 BTC

So in reality there are only 10 times as many ADA as there are Bitcoin.

So if ADA were to become as big as Bitcoin, each ADA would be worth approximately $923.00 (assuming each Bitcoin is worth $9,230 today)

FURTHER:

Anyone can “say” whatever they want “equals ONE x, y or z coin”… in reality the REAL total number of “coins” is actually “the smallest amount of each coin x the total number of coins”

the next calculation to do might be…

Take the current price of bitcoin and divide it by 0.00000001 to get the value of the Satoshi (the name of the smallest btc)

Then take the current price of ADA and divide that by 0.000001 to get the value of a lovelace

Then compare those two prices.

so each Satoshi is worth $0.000092

each Lovelace is worth $0.0000038

So to finish it all off…

BTC is REALLY only worth approximately 22x more than ADA

So divide the current BTC price by 22 and get approximately $429.13 per ADA

Thoughts?

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The math is sound and the concept makes sense if you compare this to traditional equity markets where the smallest unit of a company that can usually be purchased is 1 share. Thanks for posting, @dmac22222.

It’s just a thought. Maybe a new way of looking at things!

  1. https://www.reddit.com/r/cardano/comments/7ja950/to_whoever_thinks_a_25_billion_circulating_supply/

  2. https://www.reddit.com/r/cardano/comments/77hxcd/denominations/

  3. https://www.reddit.com/r/cardano/comments/7jwzbu/can_anyone_please_help_me_make_sense_of_the_last/

  4. The reasoon why Ada will hit 10,000 $ and much higher

  5. I have a very interesting questions

  6. Total coin philosophy

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@dmac22222,

I’ll make you a deal then. I’ll sell you 1K of my ADA for the bargain price of $300 each right now. :wink:

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Yeah its a thought, a thought of complete nonsense, it doesn’t work that way.

There are 2000 times more ADA than BTC when all is done. No fancy way of calculations will change this, It is all based on market cap.

0.5 ADA is not 2 ADA, its a half of 1 ADA.

Also how would I buy 0.00000001 BTC… Assuming you are meaning a FIAT exchange… Thats 0.000093 USD… Also the fee is higher than that, so you cant even transfer that amount to me in BTC. Of course all of this is irrelevant for the main point, but this is another flaw in your thinking.

But why are you ignoring the fact that the smallest unit that can be traded for each coin is still taken into account in terms of cost when being traded on the exchange? Large volume trades make this relevant… The actual nonsense is using market cap as something informative for cryptos.

Nope.

I dont understand what you mean… Explain your point.

But again in terms of the denomination discussion affecting price.

This is only relevant if there was like a tiny amount of coins, lets say there was 10.000 coins and they could only be denominated into one… and each one had a high price… When you reach a certain scale and denominations are fine for even the tiniest transactions, its complete irrelevant how deep they can be denominated. It has 0 affect on the market.

The assumptions made in this thread is complete nonsense - It is not just a little crazy, Its completely out of this world crazy… For people who understand how this work, it would be like finding a thread on a forum where people are talking about techniques to potentially fly with mind-power… and sometimes it blows my mind when I see people like… just accepting it, yup that sounds legit…

You are falling into the trap of “intuitive” thinking rather than actual “comprehension”

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Not sure what assumptions you are referring to @jb455. The original poster used what is factual about BTC and ADA and made calculations to make a fun comparison. That’s all. No one here is actually thinks their ADA is actually worth more than .33USD as of this post… LOL. I think we can agree to let this rest.

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The assumptions made in this Thread is completely irrelevant to anything

The premise from this thread is:

"So in reality there are only 10 times as many ADA as there are Bitcoin." (quote form original post)

Absolutely crazy statement… What are you talking about that this is factual? haha… The fact that you cant see this, means you dont really comprehend the concept of fractions, and fractional denominations.

A bitcoin is 1 Bitcoin
A ada is 1 ADA

0.5 ADA is not 2 ADA. Its half of one ADA. Always. Its very very simple. The fact that you are fooled, is because you are using the “intuitive” side of your brain rather than the “comprehensions” of actuality. You cannot make the assumption and comparison that is done in this thread, it doesn’t work that way.

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Thank you for your response. Always a pleasure… Best wishes

Of note: I don’t think anyone said that 0.5 ADA is 2 ADA, and so forth… However, how deep something can be denominated or sub-fractionated can, if price is high enough, allow greater distribution of ownership, hence the float (even if constant) is more widely held. I think this is what the original poster was trying to get at.

I understand why you are fooled, because many people are, even if they are fairly intelligent. I would recommend to you, to try and relook your position and try to understand, because I know with 100% certainty that you are wrong… I just dont know how I would explain it to you (or others who believe this)

Again, Its not to offend you or anyone else… I just care about reality and the truth.

Best wishes!

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Of note: I don’t think anyone said that 0.5 ADA is 2 ADA, and so forth… = That is the exact premise of the original post here in this thread.

I know this because the comparison was made against BTC, claiming there was 10 times more ADA than BTC - and deriving a valuation metric out from this - and thats nonsense… You cant do this… This is very different from what you just wrote, you cant conflate these two concepts.

Regarding your second point, you are right about that, and I also addressed that. That is a special situation, thats why companies do stock splits. I am not going to go further into details, but it does not apply to Cardano or Bitcoin. With the deepness of denomination you can split a Bitcoin or a ADA, no one will ever have any issue making the tiniest transaction possible or acquiring a piece of ADA. With Fiat or a direct trade of a product. So It doesn’t apply here, and never will. Because the market cap (in real value terms) would have to become so astronomical for Cardano for it to apply.

For a stock, they dont need a teeny tiny denomination (but they will split at large prices), but for money you do… Cash has functioned with 1 Penny as the minimum and there has never been any serious issues with that. With Bitcoin and ADA we could transact in a 1000/fraction of a penny, if the (fee) allowed it at current prices… So this concept you are referring to is completely irrelevant to Bitcoin or ADA - and using the word distribution of ownership, is not the main purpose. When Its money, you want to be able to transact at the minimum amount of value transfer anything above that, and you start creating inefficiencies.

For an example… Imagine if there was only 1 Dollar bills… So any fraction would had to be rounded up… That would annoy the market…

Because it would have to forcefully adapt to changing products to fill this exact quota, even if the customer wanted less, and if the product cant be adjusted, either the seller or buyer will lose out for some amount in that transaction. But at 1 penny, there has never been an issue, and even if there was a issue It is a such a low amount no one cares. The same concept applies to Bitcoin or Cardano when we are talking about the function of currency.

Just to point out another funny thing here, which everyone missed.

Right now in reality, the minimum fraction of a ADA is actually around 0.17 or whatever the current fee is… So the minimum denomination of 0.000001 ADA while technically accurate, in real life, It is not - for now at least.

if 1 ADA was 1USD

I wanted to buy something for a penny, well it would priced at fee + 0.01 ADA - sure I can technically give them a penny or less, but it cost me 15-16 to do so.

In actuality the USD actually has a lower denomination than ADA at this point in time - I would only be able to use the added denominations of ADA in larger transactions, but it wouldn’t go very deep to get an accurate price. Nothing a penny couldn’t do.

For a physical transaction that is, when over the internet, yes then the opposite is true. I couldn’t give you a penny or 50 cents or even a couple of dollars… Not sure what the paypal fee are now a days and min. transactions.

What is indisputable:
There are 100 000 000 Satoshis (the smallest indivisible piece) in one Bitcoin
There are 1 000 000 Lovelaces (the smallest indivisible piece) in one ADA

Therefore, if we multiply each of the above by the total supply (of each) we will find that the ratio of Satoshis to Lovelaces is smaller than Bitcoin to ADA…that cannot be disputed…It is a mathematical FACT, not an opinion.

Comparing ADA to Bitcoin to Dollars and Satoshis to Lovelaces to Pennies is like comparing Apples to Oranges to Mangos…futile…:no_mouth:

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Yes but that is irrelevant to anything of significance - how many pieces we can divide it in does not make the total sum greater.

Thought what is not a fact, and what is stated in the original post is that there are 10 times as many ADA as BTC.

a ADA is 1 ADA
a Bitcoin is 1 Bitcoin

I do not dispute that One ADA is One ADA…nor do I dispute that One Bitcoin is One Bitcoin…
Can anyone dispute that this is not true?:
One ADA is 1 000 000 Lovelaces
One bitcoin is 100 000 000 Satoshis

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Sure but Satoshis and Lovelaces dont exist… They’re not a different unit. There is only ADA and Bitcoin and a fraction of a ADA or a fraction of a Bitcoin. You can call them what you want… and I think that is where many get confused, they see them as like a separate unit. Lovelace and Satoshis are just semantics because it is easier to say than one one millionth of an ada.

Like saying there is more Satoshis than there is Lovelaces, right it sounds right, but its actually really stupid to say… You see? I think thats where people mess this up by thinking that way.

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Wrong…Satoshis and Lovelaces do exist, and they are described (and named) in the white papers for each crypto… .

I do not call them what I want…the creators called them what they wanted…from the Cardano white paper:
DENOMINATIONS

1 ADA = 1,000,000 Lovelaces
1 Lovelace = 1/1,000,000 Ada
Ada has six decimal places.
1.000000 = 1 ADA
0.000001 = 1 Lovelace
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But Lovelace is not a unit, it is just 0.000001 of an ADA = the word lovelace is just created because it is easier to say for common use.

You cannot pay me a Lovelace, you can only pay me a fraction of an ADA.

I know exactly what you mean, and I think you also understand this… But I am just saying this is why people get confused because they see them as a separate unit and are denominating the units to lowest denomination to figure out supply which is the wrong way to do it, it is the other way around.