Over the past decade, cryptocurrency users have used a number of coin market capitalization aggregators to monitor the price of a crypto asset and the overall valuation of a project in the market. However, there are also a number of cryptocurrency price aggregators that follow a different method of recording market caps, as opposed to multiplying the supply by the price of each unit. The coinfairvalue.com web portal attempts to estimate fair value based on the current usage of each coin and without implicit speculation.
Coinfairvalue.com differs significantly from traditional market capitalization regulators.
Cryptocurrency aggregators measure the spot price of each cryptocurrency and multiply that number by the outstanding supply of each digital currency. An aggregator like our web portal markets.Bitcoin.com then displays the capitalization of each cryptocurrency exchange in order from highest to lowest valuation. There are also market capitalization aggregators that measure cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) against large global assets, including stocks like Apple and Amazon. Currently, BTC is the 10th largest asset in the world, just behind Alibaba Group Holding (BABA) shares, according to assetdash.com.
Fair value and market value are not the same thing.
Two years ago, in the summer of 2018, another type of crypto price aggregator was reported, using what is called fair value. Fair value is a general measure and is not the same as market value. This ratio is often used in accounting and can be used to measure an asset or the true value of a business. Estimates of fair value are often found in a company’s quarterly financial statements, along with market valuations. The aggregator, called coinfairvalue.com, uses the methodology behind the fair monetary value model published by @pablompa in 2017.
One of the most interesting parts of the fair value model is that it leads to the rational conclusion that currencies should be traded at fair value when the number of speculative transactions in a given currency itself is negligible compared to the total number of transactions using that same currency as an instrument, according to the web portal.
The website continues to grow:
Calculating the exact fair value of one currency against another can be time consuming if done accurately. The hardest part is integrating the expected future supply to get the updated total supply. Nevertheless, some approximate values can be used for a quick calculation.
Coinfairvalue.com values published on 9. August 2018 were included.
Aggregate list of Coinfairvalue.com in 2021
Looking at the fair value (FV) of crypto assets on coinfairvalue.com is very different from traditional market cap aggregators. For example, the US dollar and the euro, the two largest currencies on the list, are included.
Coinfairvalue.com values published on February 5, 2021 were included.
Bitcoin is lower than the dollar and euro, but according to the FV listing on coinfairvalue.com, BTC’s FV is expected to be $10,960 per coin. This is in stark contrast to the price of the BTC currency, which grabbed well above $30k and near the $40k area. Ethereum (ETH) made headlines on Friday by breaking through the $1,700 per handle price range. However, coinfairvalue.com’s FV dataset shows that ETH should be at $351.13 per Ether.
The controversial digital asset XRP is not much different on coinfairvalue.com than on other crypto-currency aggregators. However, XRP is expected to be $0.3942 per unit today instead of $0.4592 per unit. Below XRP is Bitcoin Cash (BCH), which is currently trading at $438.64 per BCH, but according to web portal FV, BCH is expected to be worth $1,723.86 per coin.
Other digital assets that show they should be worth more than they actually are are crypto assets like crypto.com coins (CRO) and a few others. The vast majority of coinfairvalue.com listings show that most coins are overvalued in terms of FV, and the total amount of all coins on the list is about $445 billion. Again, this is far less than the current market valuation of all of the more than 7,500 existing crypto assets, which are worth more than $1 trillion.
Coinfairvalue.com is not the only attempt to determine fair value, as cryptocurrency proponents have tried to do the same in the past. News.Bitcoin.com explored another seminal form of FV crypto-currency aggregator in the spring of 2018, when Andrew Rennhack created his Honest Coin Cover.
Despite the alternatives, most people will probably use market capitalization aggregators for coins that multiply the price by the supply. While it is interesting to look at so-called fair value metrics to see a different perspective on crypto assets, which are often considered highly speculative.
What do you think of today’s FV stats from coinfairvalue.com? Let us know what you think in the comments below.
Tags in this story
Aggregators, BCH, bitcoin (BTC), bitcoin cash, bitcoin cash BCH, calculations, fair value coins, coinfairvalue.com, crypto assets, cryptocurrencies, currency fair value, economics, Ethereum (ETH), fair value, Fair Value, FV, market caps, market value, pablompa, value
Photo credit: Shutterstock, Pixabay, Wiki Commons, Coinfairvalue.com,
Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of a product, service or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.
bitcoin december 2021,bitcoin value,bitcoin concentrated ownership,bitcoin overtake gold,bitcoin popularity,dnt crypto news,Privacy settings,How Search works,bitcoin overtakes gold in the us as the 4th most popular investment vehicle,how to calculate fair market value of cryptocurrency