On Thursday, ICO advisory firm Satis Group released a report forecasting the possible prices of virtual currencies. While we have listed some of them in Part 1 of this piece, we will continue here with Part 2. Before moving on to more cryptocurrencies, we will explain the methodology used to arrive at the prices.
Methodology Used by Satis Group
Notably, Satis Group showed how the three methodologies used can be applied to various crypto assets. These examples include:
Bottom-up
Using cash flow models to estimate to the likely value a cryptocurrency will yield.
Peer-based
Using a wide range of network-specific metrics to make a decision concerning relative valuation.
Top-down
Using money quantity theory to determine the value of crypto assets needed in supporting a projected economic outcome.
Effectiveness of methodology
In fact, the Satis Group noted that the parameters were not a good way of predicting prices in the short term. Nonetheless, it maintained that they are effective for long-term predictions. They also believe that the industry will mature over time. When that happens, fundamental valuation techniques will then accurately approximate trading prices.
Rundown of More Crypto Assets
Ethereum (ETH)
Importantly, Ethereum is the Number 2 cryptocurrency by MCAP, but it has been seen struggling this past year. At some point, ETH hit an ATH of $1,432 USD. Sadly, the study says that efforts to reach that price mark will always elude the smart contract-enabled platform. With $882 USD in 2019, Ethereum will end up losing about $294 USD to settle at $588 USD in 10 years. In the midterms, ETH will trade at $686 USD at the end of 2023.
Bitcoin Cash (BCH)
Even though BCH was forked from BTC, Satis Group forecasts that their prices cannot be equal even in ten years. While there’s so much buzz around BCH, the “noise” can’t come close to toppling BTC. Its community will be wondering what is wrong with BCH when it trades at $268 USD in 5 years. Alas, they wouldn’t have known it would get worse 5 years later when BCH sits at $180 USD on the exchanges.
Ripple (XRP)
Here comes the controversial one. Yes, Ripple will always remain relevant with more partnerships and products. Also, XRP will stay in the Top 10 list for the next 5 years. However, it is predicted to have a poor outing at $0.01 USD in five years’ time and crashes far worse some 5 years later to trade at $0.004 USD.
Others
In conclusion, other digital currencies that were not discussed will have a terribly hard time competing. Satis Group says that ADA and XLM will carry over their prices of 5 years, which are $0.001 USD and $0.02 USD respectively, to 2028. On the other hand, EOS will gain from $4.50 USD in 2023 to $4.80 USD in 2028.
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