What is ETHBITS.
Easy-to-use, secure cryptocurrency with a future-minded organization - that’s where ETHBITS comes into play, as a trustworthy and secure alternative exchange that allows users to easily convert fiat into any cryptocurrency. Buy or sell your favorite cryptocurrency in just a few clicks with peace of mind, knowing that your funds are safe and you are dealing with a trustworthy organization. With ETHBITS, security and access are the new reality and will become the standard because we at ETHBITS believe that everyone, everywhere should have access to crypto currencies. [1]
[1] ETHBITS Whitepaper
Let me explain:
There’s a lot of debate within the ETHBITS community around trading volumes for our ETBS token. Speculations around the market cap for ETBS, the ETBS token value and so forth. My feeling is that we need to look at the ETHBITS product as a whole and not just as an individual token to trade. We can’t set a value on our token if we don’t have both our trading platforms up and running and being used on a daily basis. We can’t assume market cap value if we don’t really have a token that has a value set to it. The only way we set a value to the token is to calculate the ROI (annual income per ETBS)
As we all know ETHBITS as a whole has 2 product offerings that we are trying to get to market asap.
- ETHBITS Local
- To offer P2P exchanges between major fiat currencies and a variety of cryptocurrencies with a large and active community around the world.
- iTrade
- To offer a new way to trade, copying expert traders’ movements.
We as token holders share in the fees that are taken on both the platforms when trades are executed on the platform. For ease of explanation lets focus on the 40%, not focusing on the different tiers of 80%, 60% and 40%.
Sharing in the fees, means you will earn an income for every ETBS you own. Lets again for now focus on an annual income per ETBS.
Annual income per ETBS: $0.50
Factoring in the info posted by one of our community members Simone (CryptoHOLDERS): “In fact a good investment in the market (not crypto-market) is the one giving you at least 12% yearly (Warren Buffett docet) -> so 100/12 = x8.33 of the value calculated.”
https://medium.com/@CryptoHODLERS/etbs-market-analysis-efce9bfa61d7
With this information we can make the following assumption:
$0.50 x 8.33 = $4.17 (ETBS token value)
With this value we can relate back to an ETBS market cap:
$4.17 x 1,600 000 (total ETBS supply) = $6,664 000.00
We can also calculate the daily trading volume we need on both our platforms to achieve this annual income received per ETBS:
$0.50 annually = $0.001369863014 earning daily per ETBS ($0.50/365)
$0.001369863014 x 1,600 000 (total ETBS supply) = $2 191.78 (This is the 40% profit share of all fees taken daily on both working platforms)
$2 191.78 / 0.4 = $5 479.45 (Total fees taken daily on both working platforms)
For this example I have used a flat rate fee of 0.002 (fees on iTrade is not known yet, fees on ETHBITS local is 0.005.)
$5 479.45 / 0.002 = $2,739,726.03 (Sum of daily trading volume for both working products, iTrade and Local)
To Summarise:
Annual income per ETBS: $0.50
ETBS token value: $4.17
ETBS market cap: $6,664 000.00
Daily trading volume (Local & iTrade): $2,739,726.03
If we play around with some of the numbers:
Annual income per ETBS: $2.00
ETBS token value: $16.66
ETBS market cap: $26,656,000.00
Daily trading volume (Local & iTrade): $10,958,904.11
Annual income per ETBS: $7.00
ETBS token value: $58.31
ETBS market cap: $93,296,000.00
Daily trading volume (Local & iTrade): $38,356,164.38
For this reason I am saying that we have to look at ETHBITS holistically. We can’t just look at token value or market cap. We have to bring all the factors into consideration because of the fact that it’s all connected to both our working platforms. Without working platforms we have no value to link to an ETBS token. Without working platforms we can’t take any fees. No fees, no annual income. No income, no value linked to an ETBS token. Saying that ETBS should or could have a market cap of $100,000 000.00, that’s awesome, but it goes with a lot of working parts that’s all connected to each other.