The `Scarcity' Segmentation Of Virtual Currencies --- Examined (PART ONE) Coins Over 58 Million Available

A couple weeks ago I employed some of my natural `market research' skills by examining one aspect... one attribute - of the different `virtual currencies'... coins available... and that is... `the number available' - or what amounts to scarcity. Yes, the number available (using one `best source CoinMarketCap.Com)... such as ...does a `coin' have just a `handful' available, or, are there literally BILLIONS available. (This research into this data was done about May 7th.) Many coin traders have only the vaguest ideas about most coins... despite being able to tell you that Bitcoin will never exceed 22 million (or whatever the exact figure is). 

One reason I did this background legwork was to answer the question - Which of these `scarcity' strategies `works', at getting a coin the `attention and awareness' it needs to break through the enormous `clutter of coins' currently on the marketplace exchanges and beyond? Is it the `here I am and I am billions strong wanting to be the NEXT BIG thing? Or, is it the `I wanna be the next BITCOIN' positioning (similar number of coins to bitcoin) ... sought by many coins `with improvements' to the bitcoin technology. 

Or, should the coin be daring and emulate the `scarcity' factor in spades... limiting the number of coins available to `just a few' in comparison to Bitcoin... and hope, somehow, that a real `scarcity' value is subscribed to and ascribed to the coin itself... in an era where most coins have a near zero awareness with the general public. Perhaps `the scarcity branding' will be accomplished with an expensive sounding coin brand name? 

Ah yes..... The appropriate branding - essential to all coins .... but perhaps the sweet spot isn't scarcity (?) ...... indeed,  should the positioning on how many coins will be available by the developers be something in-between the HUGE apparent hole in the above... a coin NOT with BILLIONS... but substantially more than BTC, and filling the 20 million to 1 billion coins available positioning. 

Hmmm. Interesting. I wonder. So, I did the digging I first promised you.

So, what did my analysis find - about the 552 coins listed on CoinMarketCap.Com just a few weeks ago? Sorted by `number available'? 

Well below is a summary ... and a guide of sorts to understand ... probably... just how much `potential' ANY coin really has `if is has a certain volume of coins'... regardless if the developers dream is a dollar a coin (which is about 0.004btc=1.00fiat)..... `a common pipe dream of all levels of scarcity and all types of coins'.

Enough already right? .... are you ready? Here goes... lets start with the Top 50 coins with the `most available' - you better be a coin with a BIG name for this branding... and as you can see below - you will not be disappointed with the biggest available coin:

Segment 1 - Most Abundant Coins Available, top 50

THE BILLIONS AND BILLIONS SEGMENT

In this category, Colossuscoin, with 312 BILLION available takes the cake... at least it has a name to match its Colossus number of coinage, right?... And, the top 50 trails down to the measly 2.1 BILLION available for UFOcoin. BTW, these two coins have market caps below 20K and daily volumes under 20 bucks. Hardly an indication of automatic success by having billions and billions. Tracking these random coins that make up the first and last of a category will also give some insights as to just how HARD the alt coin world is to compete within.

But the real BANG of any of the 10 segments is the CHANCE to be BIG... and this segment DOES THE BEST overall with (10-12) coins in the Top 50 Marketcap AND Top 10 Marketcap (of all 552 coins)

Indeed.... these 10 coins were in each days Top 50 marketcap that I checked:

(shown with fiat value)

these 6 were ranked #11-50 in marketcap

         FIAT

NEM 0.0001

MINT 0.00001

REDD 0.00001

INFINTE 0.000003

BYTE 0.00002

DARK NOTE 0.00006

Segment 1 - TOP 10 MARKETCAP COINS
                           FIAT/USD
#8 - BITSHARES 0.003
#7 DOGE 0.00009
#5 STELLAR 0.0027
#2 RIPPLE 0.00076

EVERY COIN ABOVE WITH A VALUE OF UNDER
10,000 SATOSHIS (0.0000XXXXbtc)

So, big things can come in BIG packages - but, as of now, a self limiting value under 1/3 a cent each for the very best positioned. Indeed, should a price breakthru happen to this category or even a coin in this category - the implications could be enormous.
IMO... the `second bitcoin' will likely come from this segment, but the competition is fierce at the top - and other segments of scarcity also do quite well in gaining real value per coin and per cointype. 
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(You will notice from here on out that I follow the same format as above in bringing each segment to you for analysis.)
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Segment 2 - Very Abundant Coins Available, top 51-100

THE BILLIONS AND HUNDREDS OF MILLIONS SEGMENT

In this category, ANIMEcoin, with 1.9 BILLION available takes the honors... And, the top 100 trails down to the measly 176 MILLION available for Einsteinumcoin. BTW, these two coins have market caps of 4k and 25K and daily volumes under 80 bucks. The randomness of these picks representing the segments is one way of accessing the value of segments in general too.

But the real BANG of any of the 10 segments, as mentioned before,  is the CHANCE to be BIG... and this segment does the worst overall with only 4 coins in the Top 50 Marketcap AND one Top 10 Marketcap coin 

These 4 coins were in the Top 50 marketcap that I checked:

(shown with fiat value)

these 3 were ranked #11-50 in marketcap

         FIAT

NUSHARES 0.002

SYS 

GULDEN 0.001

Segment 2 - TOP 10 MARKETCAP COIN

                           FIAT/USD

#6 - NXT 0.009

EVERY COIN ABOVE WITH A VALUE OF UNDER

10,000 SATOSHIS (0.0000XXXXbtc)

So, big things can come in BIG packages - but, as of now, the self limiting value for these hugely available coins remains at under a cent each for the very best positioned. Indeed, should a price breakthrough happen to this category or even a coin in this category - the implications could again be enormous.

IMO... the `second bitcoin' based on what is charted above -  will likely not come from this segment.

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Segment 3- Abundant Coins Available, top 101-150

THE TENS OF MILLIONS AND HUNDREDS OF MILLONS SEGMENT

In this category, TAKcoin, with 169 MILLION available takes the honors... And, the top 150 trails down to the measly 58 MILLION available for NAVAJOcoin. BTW, these two coins have market caps of 1k and 250K and daily volumes OF 16 bucks @300 bucks.

But the real BANG of any of the 10 segments is the CHANCE to be BIG... and this segment does the 2nd best overall with  7 coins in the Top 50 Marketcap BUT  had NONE of theTop 10 Marketcap coins.

These 7  coins were in the Top 50 marketcap that I checked:

(shown with fiat value)

these 7 were ranked #11-50 in marketcap

                       FIAT

NAVAJO 0.004
BLACK 0.013
WORLD 0.003
DNOTES 0.011
CRYPTI 0.003
TILE 0.003
FUEL 0.019

The top coins now approach 2 cents fiat in value each - real money.

STILL

EVERY COIN ABOVE WITH A VALUE OF UNDER
10,000 SATOSHIS (0.0000XXXXbtc)

So, big things can come in BIG packages - but, as of now, the self limiting value for these hugely available coins remains at under 2 cents each for the very best positioned. Indeed, should a price breakthrough happen to this category or even a coin in this category - the implications could again be enormous.
IMO... the `second bitcoin' based on what is seen (not even one top 10 marketcap) -  will likely not come from this segment.
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So... a quick rule of thumb on any new coin you are considering investing in... ask and research how many are available of this coin? Because IF you see a pricing in excess of 0.0000xxxx and they are in any of the above categories, beware, ... in other words - a coin that prices itself at say 0.00015000 satoshi out of the gate upon introduction to the public ---- you can BET that coin is going DOWN in value - IF it has more than 58 million coins available.
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Part Two will tackle categories 4,5,6,7 - the post is already written and posted, just keep reading DOWN this page - be ready to be enlightened soon.
Part Two
Part Three
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Coinbase.Com
the place for newbies to get their first Bitcoin

Fifty Buck Dental Floss Tycooning - Part Two

This is the on-going account of the approximately 50 USD (via Bitcoin for trading 0.15 Bitcoin when begun) trading account in virtual currencies - offered at Bittrex. All readings 11/7/14 @6pm.

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Today's Patter

As you have read, the first moves into this exchange was just a few days ago to acquire a portfolio heavy in the `marijuana names' before the election - assuming a general win for pot. The Coin result was mixed but one Coin - the SativaCoin - has been tanking nearly the entire time due to low trading volume and folks getting out at any price. I guess I will find out what happens when one owns such a Coin. Perhaps. (as trading volume has picked up, perhaps saving it in the exchange). Still can't find a price to get back into ExclusiveCoin (sold out at profit already).

Now, to make it easy for myself - I've been buying a Coin in amounts of either 0.01, 0.005, or 0.0025 Bitcoin value. That way, I can generally easily know where I stand with a Coin since the investment. Understand the even the 0.01 BTC is worth only 3.50 USD or so (when I started). IF that is understandable - here's what the Dental Floss Tycoon Coin Portfolio looks like right now.

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The starting 0.157 BTC

is now

0.140 BTC

OWN THESE

@ values shown - @# of Coins

ReddCoin - 0.099 - 76K

NobleCoin - 0.0023 - 19K

UFOCoin - 0.0014 - 16K

PotCoin - 0.013 - 2K

CraigsCoin - 0.0025 - 1.4K

NavajoCoin - 0.052 - 1.3K

GanjaCoin - 0.003 - 500 

(0.05start + sold additional 0.05 at loss)

CannabisCoin - 0.094 - 400

(doubled up today from 200 coins)

Solar Coin - 0.80 - 400 (1/2 for sale)

VertCoin - 0.011 - 60

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OWN- 100%UP FOR TRADE

SativaCoin - 0.0053 (0.01 start) - 15K

CheckCoin - 0.0029 (0.005 start) - 200

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BITCOIN - DRY POWDER

0.066

0.017 (in reserve for active buys/BIDS)

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ACTIVE BIDS INCLUDE

ShadowCashCoin

GamerCoin

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0.49 true dry powder

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today's purchases included

NobleCoin*

NavajoCoin*

VertCoin (re bought for trade - new cycle)

ReddCoin (doubled up)

CannabisCoin (doubled up)

*first time ever was today

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All you need is some peoples currency - Bitcoin - to begin to have the same kind of fun. Buy Your First Bitcoin Here Via Coinbase. (this is where I bought my first and store 0.15 outside of my trading account). I add tiny amounts to Coinbase regularly.

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Remember, if you sign up for the FREE Bitcoin daily - at the links on this page - remember to use BS in your member name to let me know how you got there.

Bitcoin Stuff

Today's post will mainly be links that I've run across or used on this excursion into Bitcoin and related currencies. But, the first update is that 0.157 Bitcoin Value in the Dental Floss Tycoon account is 0.139 value as the hoped for BOOM in the `pot coin' names after the legalization voting on November 4th didn't occur. That said, they did come back some yesterday and I haven't dumped the position much at all yet. And indeed, the PotCoin is actually UP fairly significantly. Must be the strange names like Ganja that spooked the crowd. I did sell at a profit most of my position in ExclusiveCoin (something I will definitely follow closely). I'll review more of that and more in detail in an upcoming post.

The first indications are that the shift to Bitcoin coverage is going well - with more direct usage of those posts than usual (being shared?). Obviously I am offering the old Barfstew format and the new BS Gallery format so that does cover some bases too. Sadly, so far, only 5 of you have been smart enough to sign up for the FREE Bitcoins - Daily..... I know that it is strange for a business plan to begin with giving away money.
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Here's some of those links of interest.
Brave New Coin is great for a quick look at the top Digital Currencies Market Caps And Prices, AND - they cover nearly daily the stories happening about Bitcoin - such as:
The World's First `Carbon-Offset' Currency indeed, as I've already noted with the literal EXPLOSION of BRAND named coins - from the pot category to colors to .... yes The UFO Coin for the advancement of understanding UFOlogy..... yes, the marketplace is ENDLESS for this type of segmentation to drain the natural government monies. Other recent stories include how the UK is reaching out to the Bitcoin community as it sets up it's regulations on digital currencies. UK Reachout. You can find many more important stories at Brave New Coin so be sure to bookmark that one.
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More links:
Bittrex - is where I am having fun being a Dental Floss Tycoon - easy to use website is nearly self intuitive even for a novice trader. (like myself). One of the busier exchanges.

CoinMarket Cap  is another excellent website currently following over 540 currency values including the less known ones like KarmaCoin.

CryptoCoin Charts - amazing database - brokerage.
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More to update but let's get this up first.