Does LINK even have any revenue projections?
What's the actual business case here? What is their fee for their services, and how do we estimate the volume of business they are going to be doing?
Right now, the price and valuation are based on nothing but speculation and some distant, future projections for demand...
That's not enough for serious investors.
Low effort FUD. If serious, read the whitepaper and the google blog post again.
Name another crypto with revenue projections. At least LINK's can be calculated with a reasonable degree of approximation
Sorry, it's not a FUD attempt, but do you have any relevant answers?
>At least LINK's can be calculated with a reasonable degree of approximation
Well my fear is most crypto is worthless because it doesn't generate any revenue.
But do we have ANY IDEA how much LINK can earn on their service?
"Read the WP" is not an actual answer, BTW.
You're a brainlet but here is my estimation:
Derivatives market: D
Percentage of Derivatives market captured: D%
Percentage of required collateral: C
Value of Other Applications: O
LINK Supply: S
Formula: ((D x D% x C)+O x (D x D% x C)) /S
The Problem now is that only D and S are known, but you can put in some numbers just for fun and see what happens.
D=10^15
D%=0.01
C=0.01
O=0.01
S=10^9
The estimate I use for the derivatesmarket is 1 quadrillion ( rounded down from 1.2). Because this market is so huge I assess that every other link-application just falls under O.
If we say link captures 1% of the derivatives market and 1% of that amount requires staking and all other applications make up 1% of that amount we get a price of $101 with all tokens in circulation.
>requires staking
Should be: requires collateral
Ok thanks for the well reasoned input, but you make some optimistic assumptions.
Why would a blockchain based derivatives contract be used as opposed to a regular, proprietary derivative contract used in the actuarial industry?
That's more of a general question about the intrinsic value of smartcontracts/DLT.
I guess you're new here so let me give you an advice: This is not reddit, we're are not going to spoonfeed you. I already gave you my shortened idea of CLs long-term price prediction.
Either ask this question somewhere else or think for yourself.
>the price and valuation are based on nothing but speculation
Like everything
Because blockchain based contracts don't require third parties to affirm that the contract was executed properly. They don't require bond lawyers to write their contracts, and they're also standardized compared to proprietary contracts.
OK, so there's no advantage for anyone to move to a blockchain-based derivatives contract at this time or the foreseeable future.
So far, Blockchain has been one gigantic failure in terms of commercial success.
So LINK might stagnate unless there's actual commercial adoption for blockchain based technology.
It seems the fate of LINK is outside of the actual utility of Chainlink.
Because it would be easier to manage, faster to execute, and less costly overall. Basically it's a win-win for all parties involved.
>Like everything
You must be retarded if you think this.
I don't have the time or crayons to explain security valuation of a real company, with real products and real cash flows, but it involves present and predicted cash flows discounted by several variables into the future.
If LINK wants to have any hope in hell of succeeding, it will have to have an actual business case.
>quarter-trillion dollar market
>gigantic failure in commercial success
You disgust me.
>Because it would be easier to manage, faster to execute
How could you possibly know how fast a proprietary derivative contract settles? It's the speed of light minus a fractional latency value.
I believe that's a lot faster than the fucking Ethereum network.
That's untrue. You want to know how long it takes between fixing and settlement for a jet fuel derivative? Five working days!
this is a man
Is that even true?
And that's with all of the bookkeeping done, in duplicate, outside of the series of transactions. Billions of dollars blown annually on those departments.
Yes, jet fuel derivatives are usually priced off the average of the prior month's rates, with the fixing date falling on the last day of the month. Cash settlement of the derivative occurs 5 working days after month end.
“Were early adopters”
Love being an early adopter for stuff that's pennies on the dollar.
To be honest, I think that companies will continue to spend the money on those departments (at least initially) but it will free up time for them to work on other processes (which desperately need attention). As an example, they would be able to spend more time on trade finance, which is often poorly recorded and maintained at most large corporates
Hannah burkey make love to me!!!!
Did you want to know more? Happy to keep talking about the inefficiencies in OTC derivative trading that large corporates deal with if you're interested.
Honestly, every crypto shitcoin I've seen so far that claimed to make business easier or faster has failed, fucking miserably.
Like the promises of those cheese eating surrender monkeys from Request Network claiming to make accounting easier. Their biggest "partner" PwC recently told them they have no use for their blockchain based vaporware.
For LINK to succeed, blockchain will have to be more than the meme it currently is.
Do you know the mechanics of say a jet fuel derivatives contract?
Would be interested at all of the infrastructure that operates in the background?
Who records it? Is it a database with a registry?
Yup, most jet fuel derivatives are simple forward contracts. Options are also used but it's quite rare for airlines/corporates to enter into anything more exotic.
Since the derivatives are OTC, they're executed directly between the company and a bank (or another company like BP/Shell etc). This can be done over the phone, but nowadays is generally done through the use of a platform such as Bloomberg etc.
Both the company and the bank records the trade. They each send the details to a matching service (if they are using one) or the bank will send the details to the company and the company will sign and send back to the bank to say that they agree that the details are correct.
Starting recently, the trades are also required to be sent to a central repository such as DTCC. This is a regulation requirement, and the bank usually is the one who files the trades on behalf of the company.
That's a basic overview of a jet fuel derivative.
I think a lot of people are missing the point on this. The main advantage of something like link in the derivatives industry is security and reducing the cost of trust (think credit default swaps). The people who would be interested in link at first don't really care about speed (although in many cases smart contracts could be faster), they want to ensure that they will get payed. They don't want the hassle of lawyers and court cases which are often necessary under the current system.
>He think it's actual real value
but whats to stop someone from developing Link2 once the price starts to climb? Whats their magic sauce? Its just a ERC20 token with some contract logic yes?
Non homo here, but at best seems like Link innovates a new market which is then consumed by competitors. They are doing the hard work of building the relationships, but once that work is done replacing them is just a negotiation on price
Wow, never thought of that...
Funny why this was never discussed on this board in the last nearly 2 years...
That's really interesting user, what's your profesional background?
Not many people even in finance know the nuts and bolts of trading and financial engineering infrastructure. You must have a top percentile IQ.
What in your opinion are the main obstacles for LINK? Are you invested?
Easy, once Chain Link becomes integrated into the financial system do you think banks would simply adopt "Link2?" The main thing that is going to stop other competitors from arising is gaining the trust of the financial system.
>don't require bond lawyers to write their contracts
They'd have to review them though?
> banks will never trust JPMLink
The downsides of gender studies degrees
You’re both right. Until there is a repurchase of stocks by the company than you are buying and selling based on speculation. The price isn’t guaranteed by anyone saying “based of revenue, this share is worth x$, and you can sell to us for this factual worth of the stock”. You’re holding positions against other investors and not against the direct hard value of a company... that’s speculation
JPM is going to go bankrupt within the next decade user. Screen shot this.
OP is datamining not fudding.
OP wants to be spoonfed, but does t in a way that taunts anons into replying
DO NOT REPLY TO DATA MINING THREADS
Faggot pls, I'm trying to find a higher IQ user who maybe has a little more insight than the garden variety moonboy.
You won't get a proper answer here. Autists that think they're in a special club do not respond well to direct questions like "will someone use this" or "what for".
OP is based critical user who realizes chain stink isn’t a billion dollar company (that holds 2/3 the supply)
stfu nigger, just buy now and dont ask questions....we gonna be rich
How many LINKs So she braps in my face for a full hour?
Probably around 10.
Sorry sweetie but...
Official Chainlink Telegram Group: No price discussion, only LINK-related.
Jow Forums Business & Finance: No fundamental discussion, only LINK-related