The Pricing of Ada and Use Cases

lol, I still wouldn’t sweat it…I’ve made so many cringy posts, I’m sort of getting used to embarrasing myself to the point where I don’t care anymore…lol. Well, I have no economic background. I’ve just been in this space since early 2014, so I’ve have had a lot of time to think about cryptos. lol, still just opinions based on having been in this space a while - doesn’t mean I’m correct about it, just trying to understand what cryptos are. I wish I had your technical IT background. I want to succeed so badly with Cardano Stake Pool, and my lack of understanding relative to people who do this for a living is a real bummer for me, but I’m driven to learn whatever and spend the hours required to learn how to operate a stake pool using the highest standards, but I’m at a severe disadvantage because I don’t do IT professionally.

1 Like

:slightly_smiling_face: Well I think what you wrote makes a lot of sense and I feel it ties in nicely to the gradual price appreciation in the decades to come that I mentioned in my initial post above.

I started teaching myself from a young age and continued with various different online projects but it’s only been the last few years that I’ve been moving that way professionally. You sound like a smart guy so I’m sure you are capable of doing what you need to do and learning what is necessary to make a great Stakepool, doing it for the Cardano project is no doubt giving you all the encouragement and determination you need to put the hours in.

As far as I understand there is quite a bit of advice/support around the community so hopefully you’re managing to find what you need and if not - there are no stoopid questions :wink:

2 Likes

Thanks. I think I will eventually look for a partner or more. I think it’s too much for one person to do without the requisite background knowledge, particularly if you want to compete against pools which consist of two or more people who have been doing this professionally for a long time, but technological know-how is just one aspect of this business. There are many other aspect to it that’s a lot for one person to handle.

What I’ve been curious about from time to time - I haven’t worked out any calculations, is if cryptos will follow Moore’s law. Underneath all this tech is hardware which doubles in capacity every 4 years, and networks grow exponentially, so we many see value develop much sooner than later because the hardware infrastructure is already there, unlike when the internet of information started many years ago. The internet of value has an established foundation to stand on on which to grow more quickly than it’s predecessor did. Anyway, it’s been fun chatting…it’s getting late here, but not as late as over there lol…I’m in Florida. I’ll see you around the forum. :slight_smile:

1 Like

Thank you for writing such a detailed response, please know I am reading and rereading it thoroughly to try and understand it fully.

1 Like

Any other questions let us know!

2 Likes

Here is a good thread from Reddit with more things to think about:

1 Like

The amount of ADA charged for a transaction fee can and will be adjusted downwards as the price of ADA increases so the fees will stay at a minimal level.

Very good analysis, I would copy/paste it into the forum as a new topic.

2 Likes

Though, I disagree a little bit on the point 6.

Which one is that? Using Ada as currency? If so I hope you are right and I am wrong! I’m going to add a sentence about forking the chain if a 51% attack ever were to happen as well.

I’ve been thinking about this issue of price quite a lot and have come to the conclusion that staking is actually deflationary. Basically by staking people are encouraged to ‘go long’ on price with the hope that the price will increase. The staking of coins leads to less market volatility and price action goes down. Ideally what you want is a situation where people are inflating the price by ‘fomo’ing’ in but if the market isn’t moving and the price isn’t going up then no ‘fomo’. In fact the majority of ADA buyers will be staking i.e taking long positions.
Then the second thing is that what we have now is not actually worth the market cap. And this is not just Cardano. There is utility in a good blockchain but the blockchain itself is not disruptive tech in terms of undercutting other established networks. Dapps or coins that build on top of the blockchain might be disruptive and that is where the profits will be made There is no logical reason why any decentralised PoS blockchain deserves a billion dollar valuation.
Overall I see no real reason why the price should go higher except from people ‘fomo’ing’ in. And in terms of Africa the problem is that we need people to check from outside often blockchain that the information added to the blockchain is legit. This is a huge problem.
Then personally I’ve kind of had it with Charles and his Twitter outbursts. I’ve finally made up my mind that I don’t see a good future for Cardano. I see a great blockchain and but that’s not enough.

Ada would be better store of value than BTC, and those reasons. Gold has proof of work, and afaik, BTC using similar expansion rate as gold.

I foresee Cardano stakepools going the way of websites. A clever entrepreneur will build a team to generate stakepools. He will market them up to a certain level of delegated stake. Once at a certain level he will sell them on a Flippa-type site as a passive income source. Rinse and repeat.

1 Like

Interesting idea!