What’s It All Worth
Let me start by disavowing any pretense to being an investment advisor. Been there, done that. Nevertheless, I am fascinated with those folks that are projecting the future value of things like Bitcoin. So far most have been wrong because the price has vastly exceeded expectations.
Recently a well-respected Wall Street analyst forecast a $25, 000 price before 2022. This, according to Thomas Lee, was his conservative analysis. With the recent price above $7000, having increased more than 7 fold just this year, Mr. Lee’s projection doesn’t seem far-fetched.
There are two very interesting points to note. The first is the methodology applied in Lee’s analysis. Secondly is how this technique applies naturally to all cryptocurrencies as well as ICOs.
Explaining Lee’s methodology requires getting really geeky for a minute so stay with us. Using something called Medcalf’s Law that compares the value of a cryptocurrency to the value of companies like Facebook and Google.
Here is how the formula works. Take to total number of users, multiple that number by itself. Then, take that result and multiply it by the average transaction for each user.
Lee validates this method explaining that this explains virtually all of the historic price movements of Facebook, Google and Bitcoin.
Every bit as important, Medcalf’s Law also applies just as well to Ethereum and each of the users of the Ethereum blockchain. It is a method that is gaining believers among investment professionals. And there is something else to remember. Cryptocurrencies provide rewards to expand user engagement, so there is a build in value enhancement.
There can be absolutely no doubt cryptocurrency user engagement is on the rise. Overtime so will the value of each user transaction. What is good for Bitcoin holders is just as good for owners of Ethereum and the many users connected to Ethereum’s blockchain technology.
The Wave Is Growing
Part of Thomas Lee’s valuation forecast is based on stuff that he expects to happen from the institutional investment world. So far most of the cryptocurrency push has come from individuals and a few hedge funds, but this is definitely changing.
Just last month, Carrus Capital rebranded itself as Global Blockchain Technologies Corp. They are now the first publicly owned company investing in cryptocurrency companies. There are also plans to invest as an incubator for ICOs. This is just another sign that the world is taking cryptocurrencies seriously.
Once the institutional investment wave gets started, we are talking about trillions of investment dollars. The combined value of Bitcoin and Ethereum presently is under $175 billion so it doesn’t take an MIT student to appreciate the impact of institutions investing as little as 1%. This is serious coin.
SilentNotary: Massive Markets
Applying Medcalf’s Law is what SilentNotary is all about. SilentNotary.com is the worlds first blockchain notary company. The mission is to build trust and verification in the world.
Everywhere trust and verification is required, there is a customer.
In the B2B space there are over 60,000 companies in areas like construction, banking, insurance that translates into hundreds of millions of business users. In the B2C space there are 2.3 billion potential users. This universe is no less sizable than Facebook addresses.
The founders are totally committed to the future of Ethereum. To that SN has added its own patent pending technology Lightstamp.
The SN team totals 14 and growing. More than just code writers with a flashy ap, SN consist of financial and legal experts, product designers and marketing specialists. The team has the firepower to deliver.
The ICO Moves Forward
Join the ICO whitelist. The majority of the SNTR Tokens will be sold in the main ICO as the current Pre-Sale has successfully concluded.
We are most gratified and encouraged by the support we received starting with the Pre-Sale and now look to moving forward with the main ICO.
Please join the team at SilentNotary to restore trust and confidence: welcome aboard!
James Waggoner, SilentNotary PR & Communication
