It is the only stack that is aiming to take over national currencies out of the box. It is a staggering endeavor.
Thank you. Seems really interesting.
I couldn’t agree more. Most people see a penny coin/stock and think that it’s cheap without taking into account coins / shares in circulation. From here, I’ll be more than happy if we can get to $5.00 by the end of the year, and to perhaps $25 - $30 within 5 years. This kind of return is hard to get from the stock market or from any other investment. Go ADA!
we dont need cheap marketing - when we have the best team that will make the best tech
At $1,000 per coin and 45 billion coins maximum supply, ADA will be worth 45 Trillion. Very unlikely. Also, I’m not sure something worth less than a dollar per coin would appeal to institutional investors 'cause they’re the ones that could truly make a difference if ADA’s price has to have a lasting and meaningful move. One can only wish that ADA would announce a reverse-split to limit its # of shares to a billion or less. If it does, its price per coin could potentially double / triple / quadruple from here to at least over Hundred Billion Dollar Market Cap+ in a hurry.
For now, I’m prepared to add to my holdings on weakness and stay fully vesting until it hits $5, hopefully within a year, then to $25 within 3-5 years time frame.
Remember too that even Apple which is the biggest company on earth in terms of Market Cap with all its amazing successes over the years is still worth less than a Trillion $$$. My 2 cents…
Surely the total value of a currency is a very different thing from the value of a corporation, and calling them both market cap is very misleading.
Be careful out there. No need to argue on this topic. I’m a believer and owner of ADA as well. Instead, I’d like to refer you to this website. Perhaps you can suggest a better name and/or label for it. https://coinmarketcap.com/
ADA will be worth 45 Trillion
Hello @Nextdoorguru, I suggest that you read this
The use of “market cap” in crypto is probably far too well-established to be worth challenging, but we should beware of sliding carelessly into the assumption that the same words in different contexts mean the same thing. I actually agree with your hope of $5 in a year and $25 in 3-5yrs, I’m just very dubious about the utility of the Apple comparison.
$10K USD for ADA is not remotely possible. With a circulating supply of 31 billion ADA, at $32.25 USD, ADA would have a 1 TRILLION dollar market cap (or about 5.4 times the market cap of BItcoin).
I don’t see ADA hitting $5 by end of 2018. They have no market adoption as their platform is still “under construction”. They are still in the embryonic stages ATM. As soon as they get market adoption (like NEO) then $5 is attainable.
You are off by factor of ten here? 1 Lovelace = 1/1,000,000 ADA, not 1/100,000 ADA – ? So there are more like 20x as many Lovelaces as Satoshis, not 2x.
Interesting thread, but there’s a lot of conflicting comments and some inaccurate assumptions that might confuse some people. So, here are some critical things to consider.
Yes, the Price of ADA Can Reach $10,000 and Far Higher. To understand why this is true, we need to understand how asset prices and economic price levels work. The price of any asset is based on the currency in which it is denominated. The price of any currency is determined by its exchange rate. The exchange rate is determined by the balance of payments between countries (which is determined by their Current Account and Capital Account), the presence/absence of trade deficits, the prevailing interbank lending rate, the (in)competence of economic policymakers and central bankers in managing the money supply and interest rates, bondholders’ perception of a country’s ability to pay its debts . . . and several other factors.
Asset Prices Depend on Economy-Wide Price Levels. All the factors above determine the supply/demand of a currency, which determines the currency’s exchange price, which determines the price levels throughout an entire economy for all goods and services. To understand how all this fits together: During the Weimar Germany period after WWI, the cost of a loaf of bread in Germany was 2 trillion Deutsche Marks in 1923. Why? Because economically ignorant British, French, and American politicians at the 1918 Paris Peace Conference imposed their short-sighted, ill-fated Versailles Treaty on Germany, which was so economically oppressive on the Germans that it spawned radical Nazism, Hitler, and WWII. Even worse hyperinflation occurred in Hungary (1946) and Zimbabwe (~2008).
What Currency is ADA Denominated In? A currency, like any other asset, can be denominated in any other currency; and a “currency” can be anything. In fact, an asset/currency can be denominated in USD, EUR, gold, lollipops, apples, baseball cards, Pokémon, cigarettes . . . literally anything that two or more counterparties mutually agree has exchange value. So, when we talk about the “price” of anything, we’re really talking about its relative price to some other thing. The same item (e.g., a kilo of gold) can simultaneously have a “price” of 250,000 apples, 4 million Japanese Yen, 100,000 Pokémon, USD45,000, and 1 million lollipops. Thus, the question is not whether the “price” of ADA can ever reach $10,000; it’s what currency are we pricing ADA in; and if the price of ADA is denominated in USD, then what will the price of ADA be relative to the price of USD?
USD Inflation. A newspaper cost $0.01 in the year 1900. Today, the price of a newspaper is 500-1,000 times higher (depending on the paper). Why? Because, starting with the Spanish-American War in 1899, U.S. politicians have been engaged in foreign wars to spread economic imperialism under the false flag of “spreading democracy.” Each one of these wars has cost billions or trillions of USD. By the time the Federal Reserve was spawned from Jekyll Island in 1913, the USD had already lost nearly 30% of its value because the USG already had a printing press running at full speed.
The Cycle of War, Debt, Inflation, USD Debasement. Thus, the Fed is not the primary cause of the destruction of the USD; the Fed is merely an enabling mechanism that enables corrupt and/or economically ignorant politicians in the White House and Congress to print money without taking direct political responsibility for printing money. That printed money is then wasted on an endless river of bloody foreign wars and escalating international tensions, which fuels the military-industrial-complex, which fuels more wars, more debts, more USD debasement/inflation, ad infinitum.
ADA to Alpha Centauri and Beyond! Now, we can begin to focus specifically on why ADA can and likely will reach a price of $10,000 and even higher. There is over $1 quadrillion in combined money supply and derivatives contracts on Earth today. Every currency unit, asset, and derivative contract must be denominated in something. As we learned above, it can be denominated in lollipops, USD, ADA, etc. Most people today would probably rather receive USD, but what happens when the USD collapses like the German Deutsche Mark because we have incompetent, corrupt, and economically ignorant politicians manipulating our money supply and choking our planet with unsustainable debts? The price of anything denominated in USD will hyperinflate far beyond the Moon; it will inflate to Alpha Centauri. When (not if) that happens, the price of ADA relative to USD will also hyperinflate with the overall price level of everything else in any USD-denominated market.
Wealth Preservation. When currencies hyperinflate, smart investors and citizens rationally do everything possible to protect their wealth from inflation. To accomplish this, they typically move their assets into other currencies that more effectively retain their value. (This is the “store of value” function of a currency.) When the USD and most other fiat currencies hyperinflate, what will humanity do to protect the value of their wealth? If we, as a community, have done our job, humanity will naturally move a very large portion of the $1 quadrillion of money supply and derivates (humanity’s current “wealth”) into ADA-denominated assets. That will simultaneously increase the exchange rate price of ADA relative to USD, decrease the exchange rate price of USD relative to ADA, and increase the intrinsic demand for ADA, which will also increase ADA’s price relative to all other currencies because of the law of supply/demand with respect to any scarce resource.
Bottom Line. The USD is doomed along with nearly every other fiat currency on Earth today. Nobody can predict the exact timing of their collapse, but the factors that have caused the USD to lose over 95% of its value since 1900 are only getting worse for many reasons. This means the USD debasement and corresponding inflation is accelerating. That means the price of all USD-denominated assets and currencies will rise in direct proportion to the USD debasement/inflation. So, it’s not only possible for ADA to hit $10,000, it’s virtually inevitable.
ADALove, I like your reasoning, I would like it to be so. But it seems to me that you are looking too far ahead. With our progress since the end of the 19th century, it may be soon, but I would like to be sure of the future of my children during my life! Thank you!
If you watch closely, I think you will see more paradigm shift in economics and industries in the next 5 years than we have seen from the 90s through present .
It’s not just “soon” … it’s sooner than you can even calculate.
You have to look at the 2nd derivative of growth
I think the real question of this thread (or at least the way most readers interpret it) is not related to the value of the dollar, it is rather about wondering if with 1 ADA we could one day buy a motorbike, 400 headphones or 10,000 McDonald’s cup of coffee.
It seems that we all agree that it will never be possible… at the very maximum only ~50 cup of coffee
I think you will be able to . Because it doesn’t matter what currency you choose to use … the present value of 1 dollar today will eventually buy you a house, 15-20 years from now . But you are asking, will 1 Ada now, be worth $400 in 5 or 8 years? I would say sure!
It’s a hard debate if you agree on price deflation of goods and services over the medium to long term
I would argue the question of "store’ of value for the future is more relevant … right now, the dollar/us gov is the best a lot of people can get… But I think the value of cardano at it’s true heart is way beyond expensive… I think that there are a lot of readers, not to any of their faults, that are often not using the appropriate context for seeing the value of it.
A Penny Saved is a Penny Earned. In portfolio risk management, mitigating losses is even more important than maximizing profits because the human brain/emotions respond far more negatively to losing things than gaining things. (Many studies have confirmed this.) This psycho-biological dynamic is what drives the vast majority of the volume of institutional financial markets on Earth today. That’s why I focused on the wealth preservation side.
4 Primary Mechanisms That Will Increase ADA Real Wealth. What I explained in my previous post already accounts for your “real question” because I described three mechanisms that will cause ADA’s relative and absolute value to increase. Here they are in more succinct form:
(1) Inflationary price spikes (relative value increase).
(2) Intrinsic value appreciation of ADA due to natural supply/demand dynamics.
(3) Intrinsic value appreciation due to an inevitable economic structural shift away from fiat and toward the most reliable cryptos, which will certainly include ADA. (Affects supply/demand, but originates from a different causal source.)
(4) Bonus for ADA stakeholders: x%/year return on our loyalty to the platform in the form of staking rewards.
Pennies Saved AND Earned = More Real Wealth. When everybody else is buying $10,000 hamburgers with depreciating USD, those with appreciating ADA will have preserved and earned significantly more real wealth than fiat holders. That means they will be able to buy more $10,000 hamburgers than anybody else who is trapped in fiat hell.