How on earth does Solana crypto coin have a 70bn valuation?

[advancebooking]

It was recently reported that SOL has a $usd 70bn valuation. 

 

A month ago there was a bug and the solana blockchain crashed. 

 

How does a new unstable crypto asset (blockchain) have a 70bn value to it?? Thats a lot of money for something that fell over in a heap recently

[brobro2424]

Is it because ETHs fees are so high all the traders see its potential to do what eth does but cheaper?

Edited November 3, 2021 by brobro2424

[FritsSikkink]

Because idiots like to spend money on it.

[pomchop]

becaus there is a sucker born every minute that believes in chain letters, ponzi schemes, fomo, and santa claus?

[talahtnut]

Fizz Bang money blockchained to your mind.

[sezze]

Some people still don't get it . There is nothing in it . It is a unique "number/calculation/or however it is made" . It is basically the same as a piece of art , and the value of it is based on if people want to pay X-amount for it or not . This means , today it can be 10.000 billion and tomorrow 0.0 . Can it be a great gamble ? Sure , you can be millionaire in a minute , but you can also lose everything in a minute .

[lkn]

Majority of trading happens on offshore unregulated exchanges (like Binance). There you cannot sell anything for USD, instead you use “stable coins” like USDT.

 

So really, everything is valued in stable coins, not USD.

 

Right now, people believe that 1 USDT = 1 USD, but there is no credible evidence that USDT is actually backed (Bloomberg paywall).

 

If it turns out that 1 USDT = 0.1 USD, then market cap of most cryptos can be divided by ten. If it further turns out, that a lot of the demand is artificial, then you can probably divide by another ten. See e.g. the flash crash on 21st of October where Bitcoin dropped to $8,400, Binance told Bloomberg that it was one of their institutional traders with a bug in their trading algorithm, someone else claimed it was simply a trading bot that got disconnected, but even if we are to believe Binance, sort of crazy that a single trader can cause the market to drop 87%, “market cap” of Bitcoin is larger than that of Facebook, imagine if a single trader could make Facebook stock drop 87%, regardless of what explanation Binance gives us, its hard to come to any other conclusion than the prices are very fragile and possibly manipulated.

Edited November 5, 2021 by lkn

[Pravda]

As of right now Shiba is worth 35 billion and it does absolutely nothing.

[Neeranam]

Read this. 

 

Some ignorance on this thread. 

 

https://www.newsbtc.com/news/solana/chamath-palihapitiya-invested-solana/

[Lemsta69]

1 hour ago, Pravda said:

As of right now Shiba is worth 35 billion and it does absolutely nothing.

FUD

[mjnaus]

1 hour ago, Neeranam said:

Read this. 

 

Some ignorance on this thread. 

 

https://www.newsbtc.com/news/solana/chamath-palihapitiya-invested-solana/

Queue the dusty TV financial experts explaining to us that Chamath:

- is clueless / stupid

- does not understand tech or money

- is only in it for the hype

- is part of a Chinese/Ukrainian hacker collective aiming to scam people out of their valuable fiat

[GrandPapillon]

another day, another crypto scam ????

[mjnaus]

3 hours ago, GrandPapillon said:

another day, another crypto scam

It's a scary world out there. Best lock your doors! ????

[Nojohndoe]

On 11/4/2021 at 12:30 AM, pomchop said:

becaus there is a sucker born every minute that believes in chain letters, ponzi schemes, fomo, and santa claus?

And predictably the sad face is offered  by an advocate of  coiny thingies. ????

[NanaSomchai]

This is one of the reasons why I mine only ETH with 4 GPUs and I cash out to my bank account every week.

 

Currently generating 120€ every week, and every single week I use coinbase and turn them ETH into BTC then BTC into EUR and cash it out immediately.

 

Because again you never know when all this digital currency stuff might crash and die out.

 

As we speak, this is 120€x4 per month, undeclared, tax free cash and I'll be cashing in until ETH dies and no alt coins are deemed profitable any longer but I'm very well aware this could all disappear anytime right underneath my very feet.

 

With that being said, what is already in my bank account is mine and what I mine and is mine... is mine(d).

 

Edited November 5, 2021 by NanaSomchai

[Neeranam]

11 hours ago, NanaSomchai said:

This is one of the reasons why I mine only ETH with 4 GPUs and I cash out to my bank account every week.

 

Currently generating 120€ every week, and every single week I use coinbase and turn them ETH into BTC then BTC into EUR and cash it out immediately.

 

Because again you never know when all this digital currency stuff might crash and die out.

 

As we speak, this is 120€x4 per month, undeclared, tax free cash and I'll be cashing in until ETH dies and no alt coins are deemed profitable any longer but I'm very well aware this could all disappear anytime right underneath my very feet.

 

With that being said, what is already in my bank account is mine and what I mine and is mine... is mine(d).

 

Your be better keeping it in ETH, IMHO. 

How long have you been doing this? 

 

[davidst01]

11 hours ago, NanaSomchai said:

As we speak, this is 120€x4 per month, undeclared, tax free cash and I'll be cashing in until ETH dies

Amusing the way you think. 

 

You really think Eth is gong to die? It has some of the smartest brains in IT working on it. Yes there might be a software bug or 2 along the way (eg Kriptokitties) but these bugs can be fixed. Do you really think these developers are so stupid that the whole ethereum ecosystem will die and be worthless??

 

Meanwhile you are missing out on incredible gains in ethereum price. With all the people staking at the moment and limited supply the price is only going up. When Ether2.0 goes live yes the price will tank as there will be a lot of sellers. Meanwhile you LOSE on incredible capital gains just to earn 120 euro?????

[Pravda]

What setup (in GPU and costs) do you need these days to mine 120eu a week?

[NanaSomchai]

53 minutes ago, Pravda said:

What setup (in GPU and costs) do you need these days to mine 120eu a week?

4x3060 Ti, that's all.

[NanaSomchai]

1 hour ago, davidst01 said:

Meanwhile you LOSE on incredible capital gains just to earn 120 euro?????

I don't LOSE on anything, I earn 120e/week doing nothing from the way I see it (I don't even pay the utility bill, my government does it for me) and again better have "some" money in my bank account that I can withdraw and spend on real things I can actually feel (think groceries) tax free rather than have some digital currency in a virtual wallet that might crash, die out and not being worth zlitch at any whim of some third party developers (no matter how talented they might be) at any given time.

Edited November 6, 2021 by NanaSomchai

[NanaSomchai]

1 hour ago, Neeranam said:

Your be better keeping it in ETH, IMHO. 

How long have you been doing this? 

 

Few months. Think like since mid-July.

 

I started being all dubious about it, "meh bitcoin must be a ponzi scheme", so I had a worthless GTX 1060 laying around on my desk, popped it back in on my motherboard, fired up NiceHash and I was like "nah? THAT easy? wait what? I just made 25 euros in a few days?", opened up a coinbase account, added my bank account and got a SEPA payment within minutes, the 25 euros were on my bank account.

 

When I realized the potential; I almost instantly upgraded to 4x 3060 Ti, projected income in about 10 days left for this month is about 480 euros. I can't wait.

 

But again I'm the skeptical kind, I'll believe it when I'll see it in my main account, better yet, I'll believe it when I'll have it withdrawn from the ATM with the bills in my paw, better yet, I'll believe it when I'll have pizzas slice bought with those ETH in my mouth, then yeah that'll feel real.

 

Until then, it's all... virtually non existent to me.

 

That's my approach to cryptocurrencies.

[Longwood50]

Something has value based purely on perception.  That value is priced not by what you would pay for it but what others would pay for it.  That is why they hold auctions because people perceive the value and hence the price differently. 

I don't own any crypto currency and frankly don't understand it.  The USD has value because people perceive they can trade it for goods and services and it has the backing of the US government.  The government has the power of taxation hence in "theory" it can back the currency.  To the best of my knowledge crypto currency has no such backing. 

Strictly my opinion but it appears as though the price of crypto currencies is rising for much the same reason that the dot.com companies rose.  They rose because the price was going up and hence believed in the "greater fool theory"  That is that there would always be a fool greater than I am willing to pay more.  

 

[Neeranam]

34 minutes ago, Longwood50 said:

I don't own any crypto currency and frankly don't understand it.

Fair enough, at least you admit it. Many here don't understand crypto, or even know how toy buy it, so just criticize it. 

[2009]

14 hours ago, NanaSomchai said:

Currently generating 120€ every week,

Lol

 

Is it even worth for such a pitiful amount?

 

If it's you hobby fair enough.

 

I probably make about triple that on average in stocks.

 

 

[NanaSomchai]

17 minutes ago, 2009 said:

Lol

 

Is it even worth for such a pitiful amount?

 

If it's you hobby fair enough.

 

I probably make about triple that on average in stocks.

 

 

Definitely a hobby, not a crypto expert at all, never claimed to be one either, but it sure generates extra passive income doing nothing and that's what matters; making money in my sleep knowing the next day's meal is already paid up.

[2009]

49 minutes ago, Neeranam said:

Fair enough, at least you admit it. Many here don't understand crypto, or even know how toy buy it, so just criticize it. 

 

The only problem I have with crypto is the "investing" aspect.

 

I really hope crypto revolutionizes the world through decentralisation. Certainly a noble cause.

 

But what makes it a good investment? I wouldn't buy gold or oil as an investment, so why Bitcoin or Ethereum?

 

I mean, I did get into crypto back in 2017 and cashed out most of it in 2018. It was alright. I did fine. Still have a few ETH.

 

Only thing is: the stock I was holding (before I got into crypto) has done over 1000% in the last 5 years with far far less risk, not to mention without the extreme volatility (boom n bust nature of crypto).

 

And I could easily name many other companies that have rewarded shareholders more than most crypto over the last 5 years. Hell, even the company I got i to after crypto has done almost 10x. And are talking big companies with huge revenue and profitability - not penny stocks.

 

(yeah, I know I am cherry picking the timeframe, but it's a pretty good timeframe to look at for an investment).

 

So, yeah, I like the idea of Blockchain, I just criticize it as an investment. I think it's ok for a bit of fun, a gamble, or a quick trade - but as a serious investment. Nah.

 

Edited November 6, 2021 by 2009

[GrandPapillon]

16 hours ago, mjnaus said:

It's a scary world out there. Best lock your doors! ????

and no shortage of suckers to fall into the traps of "grand profiteering" ????

[Pravda]

1 hour ago, 2009 said:

Lol

 

Is it even worth for such a pitiful amount?

 

If it's you hobby fair enough.

 

I probably make about triple that on average in stocks.

 

 

 

If you are not lying which is of course impossible to prove you'd have to have invested several million dollars for these returns 

 

His investment was 5-6k for 4 video cards.

[Will B Good]

Happy not have invested in the Squidcrypto....up 43,000% and then gone.

 

Someone somewhere must be very rich.

[phetphet]

I don't know, but I'm not complaining.