Bitshares is MASSIVELY underrated; one gateway(Cryptobridge) is worth 25% of the ENTIRE Bitshares platform

in #bitshares7 years ago

Rudy image.jpeg

At the time of this writing, BridgeCoin has a 130 million market cap and Bitshares has a 590 million market cap. Either Bitshares is massively undervalued or BridgeCoin is way overvalued. Considering bridgeCoin can be valued more reliably than other coins due to the profit share distributed to the stakeholders, it is relatively fairly valued. Consequently, Bitshares must be one of the most undervalued coins on the market.

An analogy to illustrate this paradox would be if Sia Coin or OMG were around 25% of the valuation of Etherium; in fact, the multiple is 80-100 times. Similar to Etherium, Bitshares is a platform token with hundreds of different types of businesses that can operate on it spanning almost every industry. From games(bitsfarm), Decentralized exchanges(Cryptobridge/Open ledger/rudex), prediction markets, banking and remittances(zephyr), and any industry that needs crowdfunding or wants to list securities or any asset imaginable backed by a crypto.

To put this in perspective, Ripple and Stellar have around a 35 billion and 7 billion market cap, respectively. These cryptocurrencies target one use case, international remittances. This is just one application that can be utilized on bitshares due to the built in exchange and ease of liquidity for market pegged assets for each and every country(bit USD, bit CNY, bit Euro etc.)

Today, AEX announced they are issuing a token analogous to Binance coin on the Bitshares blockchain. This is huge but not extremely clear to the retail investor. When a big company builds on Etherium, the logic is they will have an ICO and investors will need to buy Etherium; this is easy to understand and wrap your mind around. However, with bitshares, many companies are building just their backend on Bitshares which in reality is actually more valuable than a one time crowd fund. Because of Bitshares value as a backend performance theatre, it's taking a while for investors to realize it's true value.

Conceivably every asset in the world can be issued and traded on this platform. So what's going on here? Well, Bitshares is really really complicated. To understand how the token is valuable you have to swim through all the technical details and value propositions. Accordingly, investors have a bias not to invest in things that are too complex(See railblocks for an example of what average investors like-nice and simple). Because we are still in the retail investor world, their opinion matters. To substantiate this misunderstanding, even alleged insiders are confused. The Weiss report just had their emergency briefing and guess what, they don't understand it. While the tech was conceded as positive, they said it will be irrelevant when EOS comes in June.

However, their logic was astronomically weak because they gave Steem a top rating; Steem could also theoretically be replaced by another dapp on EOS(It won't happen but it's possible). Essentially, they don't understand the difference between a general smart contract platform and an application specific one. Companies and projects want to plugin to an existing highway and are willing to buy a car and pay for gas; They do not want to build the highway when they are in the car manufacturing business; there are advantages to bootstrapping projects on an existing network for network effects and the security is stronger. Most importantly, EOS is going to increase Bitshares Growth and not hinder it(SEE Stan's recent post on the middle chain integration of EOS).

What can I say besides the market is a mechanism to move money from the impatient to the patient.

Sort:  

I guess you are buddy from Agorise on Telegram? We need to make Bitshares more understandable, there should be a team devoted to this. Even a dedicated company doing consultancy on Bitshares would be flourishing. That is the ONLY thing Bitshares need, marketcap would go x50 in no time. (And i would enter the 'nouveau riche' :-)).
I would love to help, i am a techie, but Bitshares maybe is too much, it is just everything, where do we start? I go and check out this Telegram group again where i found you, sounds VERY good :-)

I totally agree. Connect with me on Discord or telegram and we can brainstorm. I think Bitshares could really benefit from a rebranding similar to Steem's rebranding separating it from Steeemit in November. The rebranding should be something along the lines of the following: the decentralized platform for businesses, the decentralized platform for financial services, the smart platform for businesses. What do you think?

Both the decentralized platform for financial services and the smart platform for businesses sound very good. I actually think that Zephyr and Agorise are very good horses to pull BitShares in that context. As there is currently no FIAT gateway, they should join forces, we might not need more to get it going.
I must say i have 2 full-time jobs + family, i shouldn't offer too much help in that context. But i would love to work where the heart is and that is crypto off course. Some regular crypto workshops, ambassador for Agorise, these are possibilities for me in 2018, are you involved with Agorise?

In full agreement here, which Telegram group is that?

http://t.me/Agorise

Just checking it out though...

Nice approach comparing marketcaps of crypto bridge and bitshares. I had never thought about it that way.

Thank you! I am glad everyone was receptive to it.

Very nice post. I think the best points you made were boiling down the level of complexity to the efficiency of pricing. Since bridgecoin is caveman simple to understand it stands to reason that it will trade closer to its fundamental value. Something like Bitshares on the other hand which demands some significant interest to understand is much more likely to trade away from its fundamental value.

Nice extraction! Ya I think a course in psychology is necessary to be a sophisticated crypto investor; or at least in any market dominated by retail investors.

Very interesting! Thanks for sharing.

I think Bitshares is so undervalued for multiple reasons...lack of simplification. It's just so complex (like you said) like an onion with so many layers. I like how you said people don't want to build the highway if they're in the car business. So true.

Another reason it's undervalued is lack of marketing and people to explain it in a simple way. The de-listing from Bittrex probably played some part. Those are just a few.

Thanks for your thoughts in this article! Haha, I only clicked on you because of your name and picture, because I literally used "Airbud" in an article I wrote yesterday, haha. Turns out your most recent article was about one of my fave cryptos! Nice to meet you :)

Great article airbud...i was shocked to hear that they compared EOS to Bitshares and said why invest..they have no idea what they are talking about...glad you wrote something that they will finally see and wake up...look forward to your future articles on Bitshares..cheers

So frustrating to hear that from anyone purporting to be an expert and asking for exclusive subscriptions. They are copying the whole palm beach model.

totally agree friend...we could say the same for Twitter and YouTube...i always try to tell everyone not to listen to the noise online, read the whitepapers, and use the projects and technology you invest in...Don't Trust, Verify :-)

Could not agree more!

Great article bud, clear and concise position backed by something that is evidently missing in this industry - substance!

I also believe that bit shares is greatly undervalued bitshares being a dicetralized crypto currency exchage it is realy aweful to see that it has been greatly undervalued and greatly been missplaced but i guess things will now change as palony x has been bought by jp morgan.

Yeah, it's both interesting and confusing how bts can have such a low market cap compared to the other ones you mention.
I guess that a simpler coin to understand is also simpler to hype before a dump.

I also think EOS will be a great help for bts, especially because Dan has mentioned it a couple of times on his Medium-blog.

But do you think the bitshares DEX can stay independent and KYC-free with all the compliance stuff that's being worked on and that Stan mentioned for the middle chain?

BitShare de camino a la luna!!!
Buen trabajo @airbud23.

my opinion is that if the exchange coin doesn't offer dividends from the fees or revenue share i am not interested. i feel revenueshare coins like KuCoin or COSS is the way forward for these kinds of coins. it gives early investors the chance to get a share of the cake later on.

just my opinion :)

Why not just invest in the traditional equity of stock exchanges or brokerages that offer legal securities. Why crypto at all if it's a centralized entity issuing some token. You can get dividends and revenue anywhere you look. More importantly, comparing Kucoin to Bitshares is like comparing Angry Birds to Apple.

the normal stock market is quite frankly 'rigged' you are unable to invest into startup companies or projects because of strict guidelines. this is where crypto shines right now you are able to invest early on in projects and earn profits as the company grows, well above what you would be able to do on the stock market. more and more projects are also looking into the revenue share model and pos to reward their long-term holders. it is what a lot of people are looking for as there is a ton of tokens (or coins) out there that is only worth something because of their name and not because their coin/token are useful in any way.

Sure, one use case of crypto is access to these kind of ventures without Wall Street. But your funds aren't secure on a centralized exchange and they charge you insane fees to transfer your own funds. The entire reason we are messaging each other right now is because people wanted to be in Real Control over their own money in the most secure way possible. By investing in Kucoin and binance you are only exposed to a limited benefit of blockchain and crypto. They are not comparable to Bitshares.