Cryptocurrencies such as Bitcoin or Ethereum which have been discussed in our previous article at P2Port.com here serve as a foundation for further development of DAPPs (Decentralized APPlicationS = DAPPs) which are to be the key utility assets in the approaching IOT digital era.

Let's take a look at our findings on investability of these assets:


DAPPs

Especially it is true for Ethereum as it was built as a platform for these advanced applications, while Bitcoin is designed as a digital gold (cryptocurrency of choice for storing value of cryptoassets) targeting payment transactions. It is assumed that DAPPs are to be a variety of smart contracts which would provide its user an opportunity to handle various business and casual matters. At the same time, the whole blockchain structure of Ethereum is expected to secure correctness and reliability of its execution (neglecting any possibility of terms change by any party upon the agreeing on its terms).

 

ICOs

Having an opportunity to create these DAPPs, a number of teams and companies with software engineers are currently developing their solutions which can become new Crypto- , blockchain- PayPal, Google, Amazon or Microsoft versions of the future. Since 2016 we are witnessing a new type of IPOs (Initial Public Offerings), so called ICOs, which is essentially a form of digital IPO. A company which is developing a unique DAPP or even a new blockchain platform (making better version of Ethereum or Bitcoin) can use own capital to accomplish the project or find funds from external investors. At the same time, getting funding from VC or business angels can be a lengthy process which still will not guarantee a success, while conducting an ICO strengthened by a precise marketing campaign (aka road show) has much better probability to obtain the capital. Just imagine that any type of investor (both qualified and unexperienced) from any part of the world can finance the project by sending own cryptofunds to the company in exchange of the newly created token of this new project.

 

Cryptotokens as a form of equity

But which benefit does this token deliver to its user? Well, legally, this token is not a security, however it still allows its owner to profit handsomely from a success of the project. Usually, a cryptotoken is necessary to be owned by a future user to operate in the universe of the new project and use its services. Just assume that Microsoft has developed its Windows software and offered to us to use it. Well, this software has some utility for both business and household worlds (billions of sales in USD yearly), but instead of paying for it by cash a user has to acquire the cryptotoken issued by Microsoft. Now imagine, that there are 100 000 000 tokens at all. What would be the price of each token if it required 0.1 cryptotoken to own to use this software? Well, you can run some cash flow scenarios at MS Excel and get a number of results which would conclude that this token value is derived from a popularity and necessity of the whole project for people and institutions (Capable to pay). The key idea of the token fundamental value: It is used by a huge number of clients = high price; more users = even higher price; no one needs this DAPP? So no point to buy a token = low or zero value.

 

Cryptotokens as a form of equity

Simply saying, But which benefit does this token deliver to its user? Well, legally, this token is not a security, however it still allows its owner to profit handsomely from a success of the project. Usually, a cryptotoken is necessary to be owned by a future user to operate in the universe of the new project and use its services. Just assume that Microsoft has developed its Windows software and offered to us to use it. Well, this software has some utility for both business and household worlds (billions of sales in USD yearly), but instead of paying for it by cash a user has to acquire the cryptotoken issued by Microsoft. Now imagine, that there are 100 000 000 tokens at all. What would be the price of each token if it required 0.1 cryptotoken to own to use this software? Well, you can run some cash flow scenarios at MS Excel and get a number of results which would conclude that this token value is derived from a popularity and necessity of the whole project for people and institutions (Capable to pay). The key idea of the token fundamental value: It is used by a huge number of clients = high price; more users = even higher price; no one needs this DAPP? So no point to buy a token = low or zero value.

 

How to buy Cryptotokens?

           1) Convert you cash to the one of the key cryptocurrencies (Bitcoin, Ethereum, Litecoin). I would suggest to convert to Ethereum (ETH) as it usually is the fastest way for further remittance process.

           2)  It is highly recommend to use these secure gate / exchanges:

                a.       Coinbase – reliable and of the  biggest global player

                b.       CEX – convenient place to exchange

                c.       Changelly – if the time is crucial

           3)      Create an account at one of the cryptoexchange:

                a.       KuCoin

                b.       Binance

                c.      

           4)      Send the cryptocurrency of your choice (from 1st step) to your private account at the cryptoexchange (I suggest to open accounts at all of them).

           5)      Buy the token of your choice at the cryptoexchange

           6)      Transfer this token / -s to your secure cryptovault (I highly suggest not to keep your cryptoassets at cryptoexchange as it may be hacked / stolen). 

           7)      One of the best secure ways to protect your cryptowealth is to store by using Nano Ledger S. It offers great security and easiness of use. Check it here. I got it for myself and really like it.                                                 

 

Final word from P2Port.com

In our next article we will discuss our investment approach in the cryptoworld – how do we select cryptotokens for our portfolio.

 

Cryptodonations are always welcomed:

BTC:

ETH (and all ETH associated tokens):

 

 

Let's discuss it!

 

 

 

 

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  It is August 2017 already so it is the very time to check how it is going at Mintos - overall default rates and profitability figures among loan categories. You are always welcome to check our first article here.

Loans performance at Mintos as of August 2, 2017:

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  Cryptocurrencies and other forms of cryptoassets are getting more and more common among non-technical people mainly due to recent increase of a news flow about recent surge of its market price value.

Let's take a look at our findings on investability of these assets:

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  It is always important to understand basic principles of how P2P marketplace selects assets for listing as its quality is the key factor for consistent profitability for every investor.

Check these procedures at Mintos:

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