Electroneum: Understanding True Value

Hey you, welcome back to the channel. And guys, today I want to talk understanding true value, um, and cryptocurrency. The cryptocurrency space is a unique area, and some of us would even say that certain financial rules don't apply to what we get in cryptocurrency. For example, some would say that charting, which we commonly use in stocks, doesn't quite work on cryptocurrency, whereas some would say it actually does work, that you can read the charts or the movement of cryptocurrency and determine what it's going to do. But what I want to speak specifically about is trying to help us understand true value of cryptocurrency? And that's a loaded question. A lot of things go into what's making a cryptocurrency valuable and who uses it and who finds value in what it's doing. But I just want to use an example here of these financial reports, these annual reports from a traditional company that takes into into consideration not just the stock value of the company but the assets that are within the company, uh, the assets minus the liabilities. But in looking at cryptocurrency, how do we find value in, in these projects and various things? Um, uh, what we, we're seeing a lot with Electroneum is we're seeing some great a great vision. We're seeing many projects take root that I firmly believe will make Electroneum very valuable, has made it very valuable, but it's not showing up in the, in the, in the, on the prices, the trade, the trade volume on exchanges, right, in the price. So let's talk a little bit about what happens anytime we have something that clearly is more valuable than the price is going for, or what we might call in certain investment areas as picking up something or purchasing an asset at discount as opposed to a premium, right? So as we can see here, this is just like a breakdown of this company's— is talking about the stockholders' equity. And if we compare that to cryptocurrency, right, we have token holders. Which, uh, let's just use some terms interchangeably for the sake of this video. Let's say that token holders are stockholders, right? In this example, you would have two ways of looking at this. You would have, or, or two ways to consider the value of an asset, in which case one would be book value, um, the other would be the net or I'm sorry, market value or net asset value versus market value, right? So let's determine which is which. The net asset value would be the actual value. And let's try to compose that into a cryptocurrency like Electroneum. What I would see is the true value of Electroneum is the partnerships, right? The blockchain, the technology, the, uh, the new instant payment system, uh, that's coming out, the patent, the marketing strategy, the number of people using token, uh, and the overall, the overall plan, right, uh, of the token. All of these things, uh, would go into in trying to break it down to a crypto cryptocurrency as. Obviously, with a cryptocurrency, you're not gonna have buildings, you're not going to have cash assets, or you could actually— you could, you can have, but in Electronium's case, you know, but you will have so many tokens being held of value, various things like that. You can also have tokens of other entities within that if you prefer, but just looking at Electroneum, uh, those things would be the asset, the, um, the assets, let's say, within Electroneum, for example. So then that would be one way of categorizing Electroneum's value. Now the next thing would be market value, right? So market value obviously would be what we're going to be able to purchase you know, what people are willing to buy and sell Electroneum at. And some would, in the crypto space, might even say, well, that's the actual true value. Because if there's nobody willing to buy, if there's nobody willing to sell, you know, that is gonna pretty much contain, right, the value of that. However, That doesn't work well traditionally because remember, in the market we have speculators that drive up prices. Interesting enough, I believe the channel is called All About Tech, a popular YouTube channel, speaks primarily about electronics. And this, it was a video came out recently on their channel about how easy it is to manipulate the market, right? Right, how easy it is for like one person to come in and they can move the value of Electroneum fairly easy, or just by being able to push out enough, you know, big stakes. And of course, we obviously have this problem in a lot of, you know, cryptocurrencies at this time. You know, if this were like the traditional markets, like the stock market or something like that, you would have, you know, pump and dumps. They would draw the attention of the SEC. You know, that type of activity, those type of weird market increases and declines, you know, they would view this as a pump and dump. And obviously that's kind of, you know, similar to what we possibly, possibly may be looking at with Electroneum, in that the value of Electroneum is nowhere in my opinion, near what it should be. And it's due to factors outside of what's going on within Electroneum, right? As you know, it's like, just like how we're looking at this, these assets of this company, and we can clearly see the value of some of these assets, right? That value does not change irrespective of what the market does or whatever the market determines they want to pay for something, these assets are still valued at whatever they're valued at, right? Independent of the particular price. Meaning this, they could liquidate these assets and various things like that. Now, obviously Electroneum and being able to reach so many people with their future endeavors and plans and the many options they'll have as far as direction with Electroneum to generate money and partnerships and various things like that. Is obviously, despite what the market's saying about Electroneum now, is obviously going to be a factor later that's going to make Electroneum very valuable. So I hope you guys are understanding what I'm saying about the difference between the book value and market value. That's just saying in very simple terms that what speculators are paying for a particular token on the market does not necessarily reflect its value, and that we ought to be careful and understand the true value of an asset, uh, and not just look at price pumps and dumps and various things like that. And, uh, the people who fare or who will fare the best in these type situations and markets will be people who can see true value in these tokens. Now, there are a lot of investment, and I'm not going to name or single out any particular type of tokens, um, but there— I, I have seen billions of dollars, a lot of money put into tokens that, as far as I'm concerned, don't have really good overall plans for mass adoptions. It seems to me like one of those type of situations where people are just propping up the markets, right? Like how people prop up markets right before a bubble. You have a lot of people buying in and then you get the bubble as the price is not sustainable to its actual value. And so that's what I think we need to be mindful of here when looking at Electroneum, that we need to look at what Electroneum is doing in comparison to other tokens that may be doing well in price right now. But I think that, uh, you know, when it's really broken down— and I think that's the reason why we see a lot of tokens drop in price, uh, tremendously and leave people holding the bag. And people are like, well, what happened? How could this happen? Well, what happened was, uh, you, you got in, you got caught up on the speculator's bandwagon, right? Where you're just hoping the price goes up and up and up for no reason at all, you know, other than, you know, you're just basically gambling and pumping up the price. You know, there needs to be substantial plans created that create true value, not just today but over the course of tomorrow. And another problem I've seen with many tokens have been that they, they don't have really long-term plans, do they? They do something within the crypto space that may not be long-lasting for the next day. But guys, I just want to just kind of open up our minds to that, not being confused confused with the market price of an asset of Electroneum, not comparing when you see it drop down to 1 cents or so, not comparing that to the actual value of Electroneum, because I think that that is not going to be the case as the months progress and we move on. I think that with the large number of people that will join Electroneum, the numbers will be so great that people will be forced to take a look at Electroneum. Now again, I'm not sure why, uh, the plans of Electroneum, the progress of Electroneum made, and to set up Electroneum, I'm not sure why it doesn't draw the attention, uh, major attention of the cryptocurrency channels. But yet you look at them and their daily reports on tokens that are not doing well, don't have very good plans, their daily reports on these, and not one mention of Electroneum. Doesn't make any sense to me. And, uh, I just cannot take, uh, a lot of these YouTubers serious who don't cover Electroneum. In fact, I think I'm just going to stop watching their channels altogether, uh, because if they're— I'm looking at like, if they're not smart enough to report on Electroneum, then why should I take their advice on anything else? Or why should I? You know, I think I'd be better doing my own research because it just doesn't make sense to me, um, the, uh, that, you know, Electroneum is not being covered by these YouTubers, by, uh, you know, the, the mass. I mean, even, uh, John McAfee at some point announced about Electroneum is gonna be a great coin. You know, so, you know, whatever you think of John McAfee, whether you think he's some type of oracle or interesting person or just some drug-addicted jerk, you know, whatever the case is, he at least mentioned Electroneum. And I think Electroneum has done enough to gain a worth of a recognition I've heard all kinds of statements about it being a crappy coin. That makes no sense at all. And I'm not a conspiracy theorist, but I mean, you know, it's weird thoughts jump in my mind that it seems almost like somebody wants to keep Electroneum down, you know, and I don't, I don't understand why that is. And but anyway, guys, I'm, I'm still looking at Electroneum. I still think it's a great project. Obviously the cryptocurrency market overall is down, so everybody's suffering when Bitcoin prices fall. Obviously all altcoins follow behind it, with the exception of a few, but overall the market pretty much rises or falls with Bitcoin. That's just the way it is. But Electroneum, I think, could be more. You know, I think Electroneum I would go so far as to say, guys, I could see something like Electroneum even being better than Bitcoin in a sense, as far as utility, not necessarily as a store of value. I think Bitcoin will always be like the gold 2.0, right, where you can just kind of store stuff. It's just something about Bitcoin. But as far as utility and doing everything else, mass adoption of wallets, you know, if You know, Bitcoin only has what, about 13 million wallets, give or take, less than 20 million wallets. You know, I can see Electroneum easily having hundreds of millions of wallets, people in countries all over the world holding it, large countries like India holding it, you know, and Latin American countries, China. So I can see a lot of that happening. And, you know, obviously if you for the use of what you want to be doing with something like Electroneum, it's going to make more sense if everybody— if you're spending and everybody has it, everybody has a wallet, everybody has a— and for that to be effective, you're going to need more than 13 to 20 million wallets, right? You want 100 million wallets, even a billion wallets, right? For this, for everybody to hold this now, now it's this viable token that can be transferred all around the world from place to place. Place, right? But guys, anyway, I'm going to stop there. I, I hope this video, uh, always keeps us in mind of, you know, what Electroneum is and where it can go, and why other cryptocurrencies need to follow a similar suit, and why they need to understand those aspects of the cryptocurrency space to really be significant, right? To really make it to the level that many cryptocurrency enthusiasts and users want it to. Gonna have to cover that plateau or make it across that threshold, right? Anyway, guys, if you like content like this, don't forget to like, subscribe, and until next time, take care.