How do I justify the value of ADA and the net worth of investors?


Welcome everyone. Today I wanted to talk
about perspective and none of what I say on this little episode of my channel is
financial advice. You need to make your own investment choices and a lot of the
people that are watching this channel are long-term investors or they’re just
getting in the game now and they want to know where they put their money in.
People are constantly worried about the price and what this and that and it’s
obvious everyone’s in this game to make money, get rich, and get to that next
level and provide themselves with some sort of financial freedom or reach their
financial goals whether that be getting out of debt or just doing something to
augment their lifestyle, but there’s no problem with that and I think that being
honest about your intentions are completely valid everyone in here is
here to make a buck, but at the end of the day I’m here to make a buck, but I’m
also here to thrive within this ecosystem and we’re going to talk about
money today and we’re gonna talk about exactly how I will value whether or not
Cardano reaches its goals so if we look at some of the biggest financial
systems or the biggest companies in the world today let’s take Amazon for an
example because I have a few things to talk about with Amazon and we’re going
to compare Jeff Bezos with Charles Hoskinson and while Cardano
is not an Amazon and they’re not in the same niche. Cardano will not replace
Amazon. They don’t compete at all. Cardano could be used to augment what Amazon
provides in the future, but they’re in their own separate lanes and recently I
think in 2017 they did a Forbes rich list of the richest people in crypto and
Charles Hoskinson of course is on that list so in the future
let’s say if ADA hits an astronomical price and Charles net worth is in the
billions and billions and billions and billions and billions of dollars. I’m getting ahead of myself
but let’s say that his net worth is 10, 20 let’s say it’s 50 billion.
The only way that I think that the net worth can be justified and I think that
Charles has a high probability of probably getting an extremely high net
worth in his life because he owns so much ADA he is a successful
cryptocurrency builder he owns IOHK and he has a lot of things going for him, but
Cardano has to become successful and the way that we’re going
to figure out whether or not Cardano is going to be successful I’m going to reference my other video is how many businesses exist within Cardano? What is
the utility of Cardano? There’s a reason why Jeff Bezos is the richest man in the
world because everyone uses Amazon and everyone uses the subsidiaries of Amazon
as well. There are so many companies that Amazon owns. In order to have a
a justified net worth of a hundred plus billion dollars or 10+ billion
dollars 20+ billion dollars 50+ billion dollars you have to have
a lot of companies that exist within your company that are generating
hundreds of millions of dollars or billions of dollars. There are
billionaires that are owned their companies are owned by Amazon there are
a hundred millionaires that their companies are owned by Amazon. Let me
give you an example. Amazon owns companies like Ring the doorbell and you
know the CEO of Ring is very rich. Pillpack,
Kiva systems, Zappos so Kiva systems is the robotic systems, Zappos, Twitch,
Audible, Whole Foods and we go to a company like Google. Google owns YouTube
Apple owns a whole bunch of subsidiary companies that you don’t even hear of
and all those people have net worths of tens of millions, hundreds of millions,
if not billions of dollars so in order to have a justified net worth of 10, 20,
50, 100 maybe in the future 200 billion dollars, you will have to
generate a lot of businesses under that that are creating value so Cardano is not
the end and if we if today for example if the price 100x
overnight the value wouldn’t be justified because there are no
businesses building within Cardano right now. In the future, that value will
be justified because there will be businesses building so your startup or
the next persons startup that’s actually generating value that’s what’s going to
determine the actual price of Cardano and that’s going to justify the net worth of Charles that’s going to justify your net
worth as an investor. It’s going to justify the net worth of all
the c-suite within IOHK. It’s going to justify it. Right now, it’s not
justified. In the future, it will be justified. I think there are a
lot of use cases for Cardano and if the project is being used and if companies
are being acquired and if businesses are being built then the value is there. At the end of the day, we’re going to repeat what I said in the previous video. A lot
of people are saying forget the third party don’t have any third party
services in there. Let’s not be closed off here and let’s look at this in a
realistic manner. We need businesses to build and those businesses may need
third parties for certain services and they’re going to be needed because at
the end of the day something called COTS commercially off-the-shelf products
these businesses they don’t want to figure out how to use their wallet
themselves they don’t want to go and download Daedalus and start staking
themselves. They may need a third party staking service and there’s no problem
with being that third party. They may need a third party
service just to send a transaction and there’s no problem with that
either and an individual may need a third party service to send a
transaction and they may be paying some small fees on the side and I don’t think
there’s any problem with that either because businesses need to be built,
companies need to be acquired, and the web needs to grow. I don’t know
how many companies Amazon owns, but it’s a ton and Apple buys businesses all day
these companies most of the businesses you’ve never even heard of and a lot of
these companies these fortune 500 companies they buy businesses just to
squash the competition. They don’t care what the business does. Most of them
fail, but it doesn’t matter but as long as they’re not encroaching on their
network encroaching on their business plan they want to just collect all the
pieces on the Monopoly board so moving forward we’re going to see exactly how
successful it is by how many companies are building so right now
it’s a developer centric game, but eventually it’s going to be a business
development game so I know people may feel squeezed out because they don’t
understand Haskell they don’t know how to code and sometimes developers
come off like oh wow you don’t know how to code then you shouldn’t really be
here but they need us they need us they need us to build they need us to build
our companies and build our ideas it’s it’s what it is and if you’re not
concerned about that then you’re truly not concerned about the price and those
short-term price gains they’re meaningless so let me know what you
think let me know what strategies you have moving forward and how you value a
companies or blockchains net worth Ethereum for example has many dapps most
of the dapps they’re not used for anything yet but they’re trying
they’re trying so you have to tip your hat off to that that’s where we need to
go but we need to be providing these commercial solutions because a lot
of the services that are being provided are not necessarily ecosystem changing
and they can be done cheaper and quicker in the regular world I’m tired of people
saying that I should be paying for my groceries in Bitcoin or
paying within a cryptocurrency because why the value of
that cryptocurrency will just go up and the fees are incredible. PayPal
is free and people are going to talk about centralized decentralized. I don’t
care. PayPal is free and we’re going to talk about centralization versus
decentralization in another episode, but those are my thoughts this was a
ramble so let me know what you think Do you think that the net worth of a
blockchain or the net worth of a CEO that’s running a blockchain company how
do you justify their net worth? How will you justify the investor net worth?
How will justify the success of a particular network? Until the next
episode these are just unfiltered thoughts
I appreciate you and enjoy your weekend or enjoy your week whenever I release
this video all right thank you bye

39 thoughts on “How do I justify the value of ADA and the net worth of investors?”

  1. If people remember, back in the mid to late 90's Amazon stock wasn't even 10 bucks. Now Amazon stock is worth almost 2,000 dollars. I believe that Cardano will thrive sooner. That's why I can see the correlation with Amazon and Cardano.

    People need to realize that sometimes it takes decades before a company or a project thrives, and Cardano is no exception. If people in the Cardano community stay patient, it will pay off at the end…just like Amazon!

  2. Cardano is great project. I am here for a long time HODL 5-10 years, just buying every month. Give it time it will apriciate, but will take time.

  3. Philippe I love how you can talk about crypto price factors without giving financial advice. You have a magic talent and Cardano is so lucky to have you doing the best videos. Now I am getting excited to make the best stake pool possible and maybe a big compay will try to buy us out, but I'm gonna me like "Buy me out bro, I am the boss!"
    But one of the best points you made about cyptos competition – Paypal is free. Crypto has to compete with that.

  4. never used amazon, or any of its companies. Dont know anyone who does either. Hope people are going to use cardano in the future

  5. https://images.app.goo.gl/pSRysEK2K8VeE9fb6. Change “bitcoin” to “Ada”. This is where I want us to be. I think $10 is just the beginning. I have high hopes for triple digits and $1000 would take a perfect storm of events….very unlikely unless Ada crushes Eth and the world economy continues to fall apart. We’ll see 🤞🏽

  6. https://images.app.goo.gl/pSRysEK2K8VeE9fb6. Change “bitcoin” to “Ada”. This is where I want us to be. I think $10 is just the beginning. I have high hopes for triple digits and $1000 would take a perfect storm of events….very unlikely unless Ada crushes Eth and the world economy continues to fall apart. We’ll see 🤞🏽

  7. Charles let me down vis a vis Ethereum classic & I feel he'll let me down vis a vis ADA as well :/
    I had high hopes … they are gone.

  8. Is the Amazon comparison a good one? I don't know that Cardano will buy businesses in the future. Charles see the vision as being a financial stack for the developing world. It's a tool that will be widely used and integrated into millions of lives and we'll profit from the activity on the ecosystem. But I doubt Cardano pursues buying businesses. Maybe I'm missing the vision??

  9. You can't right now. When Cardano has working product it's totally different game – competition begins. Before that we can only hope and dream, let's be realistic.

  10. If you understand the fundamentals of Crypto, and then sit down and analyze Cardano, you know that eveeything working as it should, it's just a matter of time before we the early adopters are golden.

  11. please just let the mic just sit on the table, i can hear every noise your mouth makes. Also that mic has more than enough clarity when its not 2 inches from your mouth. There is no ambient noise other than the echo i assume is from empty walls and hard wood floors. But i do love your content and appreciate what you do. Obviously these are just adjustments that i think would improve the sound quality of your videos

  12. Ebay is an example for Cardano smart contract. When a person is the winning bidder their ADA is locked into a smart contract to be payed when the item arrives and is in the described condition to buyers satisfaction. Now the buyer pays the seller through paypal who gets a 3% fee before it is shipped and if item is damaged or lost the seller has to file a grievance with eBay and wait 30 days or negotiate with seller which is a very inefficient way in doing a business transaction.

  13. Had no idea Amazon owned another company let alone so many. If every country with its own national currencies had banks and businesses using their own national currencies to facilitate trades then each country and all the different species buisnesses operating in it would be like smaller and larger ponds with the water in the ponds being the currency. If I'm visualizing this correctly, with DApp technology, Cardano becomes essentially like the water in the Great Lakes in the Midwest if not the water in an ocean that different species of businesses use in their transactions.

  14. Ok guys forgot about the technical fundamentals and use cases for a while , listening to you tubers and reading much articles in the past 8 months made me realize that I am invested in the right choice of ADA.
    To add a couple of points that solidifies and increases the chances of more people having Cardano is two main factors :
    1) I see the ambassadors are much diverse in their back grounds ( they stretch from China to the USA passing the Europe and Middle East as well as Africa ) this effect will sure materialize in having more persons whom wants to own the coin.
    2) the second factor is a straight forward one I guess ( Charles has no kidney stones , no he is willing to spend 4.5 mill for a lunch unless he wants to invite the whole cardano community) 😂

  15. Cardano is not going anywhere. Just ask the banking industries in first world countries. Regulation of or more KYC hoops on exchanges and crypto sales taxes are coming.

  16. I completely agree and also love the thought process of the Cardano team it’s my biggest holding. I’d like to see more on the marketing and partnership side but I’m sure that will come as their product rolls out. I also agree about the 3rd party building but keeping decentralization and Cardano are positioning themselves perfectly for that. In my eyes bitcoin has become a shitcoin, it’s slow it’ll probably remain unchanged for a long time it’s worth is based on the name and first to market and I’m sure it’ll be first for a long time. But as the space grows I expect the relentless work and thorough processes of Cardano to shine through. I’m with you I want to thrive in the space when things are up and running

  17. PayPal is far from free. My gf sent me money from Canada to the US and after foreign exchange adjustment (10% off the accepted rate), both our accounts were charged an additional 5%. So cross border payments with PayPal cost 20%. Crypto? Negligible.

  18. I dont understand the value of the Token. The price is now around $0.06 which you can argue is cheap. So it does not cost much to access the Cardano blockchain. In the future when the price is $2-$5-$10-$100 would that not impede the use of the blockchain as companies will not want to pay a fortune to use it? Maybe you can make a video explaining how companies will actually use the blockchain and how many token will be needed for various smart contracts etc. Is it a fixed amount or will it be based on value of the contracts or complexity or will it be a hybrid of these?? I am confused. Thx

  19. Valid points. A few thoughts, correct me if I'm wrong. The market cap of traditional stock markets only includes the value of the total stocks in circulation, excluding the value of company assets and profit. Chase bank's market cap is worth 377 billion, but this excludes the trillions of dollars being stored, loaned out, and passed through the system. If cryptocurrencies are a way to store wealth, then the market cap of a cryptocurrency is more correlated to the money stored and loaned out through a bank rather than the stock of the company. Bitcoin is compared to gold as a store of value rather than a traditional stock. Does this give crypto a much higher growth potential than the traditional stock market?

  20. Good job for addressing price, otherwise known as the elephant in the room. The hush hush nature of not talking about price in Crypto is hilarious given the very nature of the beast.

    Having said that, ADA is in an 18 month persistent downtrend, and I can't see this ending any time soon. Do you? 
    It seems we are a long way away from being able to assess Cardanos 'net worth', as you say. Like you said, it's all about how useful Cardano becomes to business/users, and that is something I have zero knowledge on or zero ability to be able to predict. Maybe you are better placed to be able to speculate on this matter, but the product seems very far way from being able to serve business in a useful manner. Which means (to me), that there seems no reason for the downtrend not to continue.

    You once made a video prediction of a $3+ ADA after Shelley is released – clearly time has passed, the project has evolved, the market has changed etc. and it is now 99.9% likely that, that will not be the case. Irrespective of your earlier prediction, could you try to explain to us (in your opinion) where Cardano would have to be at, for a price to justify $1, $3…or even $10? In the same vein, is it even possible to identify the business attributes (within a crypto) needed to be able to differentiate between, say, a $0.50 valuation and a $3 valuation? Or is this whole space, just too dependent on valuations being based on a set of indefinable magical qualities that make something attractive or not?

  21. Some great insights!

    IMO Cardano will go within 2 years (still correlated to BTC halvings / 4-year cycles etc) to 2-5 dollars per ADA.
    After some years Cardano will be more & more self sustaining, without being affected by BTC.
    Then the price could skyrocket really.

  22. You say that potentially, if companies build under Cardano and are generating value, how do you see it raising the price of ADA in terms of the usage of the coin. Can you provide some examples?

  23. Interesting video. Not be a contrarian, but PayPal is not actually free. I get your point though, to the purchaser it appears to be free. However, we pay extra for goods and services for the right to use these card services. They charge the merchant who in turn charges more. Getting rid of middleman (intermediary) was high priority of Satoshi.

  24. Well, value is subjective. That side the more valuable people see an item, there more valuable it will be. If the cardano ecosystem gets hardcore the masses should see the value in that and ultimately price the whole system higher, ada inclusive. Let's build and create services that potentially have value to the target market and the moon will be the limit!

  25. Why is his room so cheap looking? What happens to his old location? I would support him, if I know what happens?!

  26. Valuation is lacking. Amazon comp is off. Amazon's strategic and competitive advantage is completely different. CEO is only one piece of the business model. These are facts.

  27. ok video is 9min 17 secs long , ill make a summary ( all the video was , what if what ifs what ifs what ifs what ifs ) using amazon , end !!! what did i gain here !!

  28. Cardano is always about abstract speeches at the meta level. There will never be real results. In this speech, it is prepared that it may take years for investors to see results. Everything packaged nicely what really makes the value of a company – distraction maneuver!

  29. Price has gone down to levels it can't recover from, people are leaving (including myself a few months ago), all this ever was was a pipe dream fuelled by a cult-like following that think it's virtuous to hold this coin whilst it bleeds through their net value. The price shouldn't be 5 cents, it should be nothing, it shouldn't be allowed to be traded because it is essentially nothing. There isn't even a single dAPP on this platform?? The only thing Cardano has been successful at is funneling money from investors into the hands of day traders, Cheers Charles! cough cough

  30. Lower highs and lower lows.. that's bullish alright …can only go up from here.. just another shitcoin.. took a long time to figure it out.. ,, charts will tell you which coin to invest in ..

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