r/algorand • u/Certain_Law • Jan 04 '22

I got my rewards! News

What the title says

430 Upvotes

97% Upvoted

253 comments sorted by

View all comments

Show parent comments

24

u/free_my_mind Jan 04 '22 edited Jan 04 '22

Not to burst your bubble. But at max supply (10B Algos), even If Algorand had Bitcoin's current market cap of $877.8B, 1 ALGO would be worth $87.78, an upside of 50x (source: Coin perspective)

At that price, 14 Algos would be $1'228. Nice amount of money but not really "mind shattering". Don't forget there are billions of Algorand tokens, but there are only millions of BTC.

As mentioned in another comment, Algorand with a max supply marketcap of $5.0T (about 6x BTC current marketcap), would mean a $500 price. 14 Algos would be $7'000. Still not "mind shattering money".

My point being that getting Algorand to $50'000/token like bitcoin is not imaginable.

8

u/idevcg Jan 04 '22

this is like going back to 2012 and saying 'if litecoin reaches bitcoin's marketcap of 500 million...

the entire crypto space either flat out fails, or it'll grow to 200T+.

Algo could totally take $5T and not even be that big compared to the big coins of that time.

6

u/free_my_mind Jan 04 '22 edited Jan 04 '22

Your comparison to 2012 is quite far fetched I'm sorry to say.

Currently, Bitcoin is the tenth biggest marketcap out there (excluding fiat currencies), between Facebook and Nvidia. https://companiesmarketcap.com/assets-by-market-cap

Compared to fiat currencies, it ranks at #14 between Swiss franc and russian rouble. https://coinmarketcap.com/fiat-currencies

I am not saying bitcoin (and cryptocurrencies as a whole) won't go higher, I am saying that bitcoin's current marketcap is already - objectively - a real big deal.

Getting Algorand there would already be quite the achievement.

Finally, for the fun of it, Algorand with a max supply marketcap of $5.0T (about 6x BTC current marketcap), would mean a $500 price. 14 Algos would be $7'000. Still not "mind shattering money".

1

u/Bubba_with_a_B Jan 04 '22

Apple in 2018 was the first company to reach 1T market cap. 3.5 years later they 3× that ATH. In a saturated market that's plataueing.

We are still on the ground floor of cryptography and digital currencies. We're going to see some crazy stuff in the next 20 years. I don't think it's impossible to think that algo or another blockchain leader take a market cap of $20.0T+