The world is awash with data about what has happened, where, when, and how much money has changed hands, as well as the names of those who have lost everything.
Cryptocurrencies, in contrast, are an entirely different beast, but they are not without their share of data.
Cryptomarketer has put together an infographic that provides a rough look at the amount of data generated by cryptocurrency-related events, and we can’t help but wonder what it would be like if the same data could be mined for profit.
“Cryptocurrency events are big business and they’re very lucrative for businesses,” said Robyn Bailenson, a data scientist with CryptoCrowd, in an interview with Crypto Coin News.
“Companies use them to create buzz, and they make a lot of money in that.”
While events such as bitcoin and litecoin are fairly easy to mine, events like ICOs, in which companies raise funds and raise the prices of their products, can be quite tricky to track down.
Bailenson and co. took a look at all the cryptocurrencies that have gone live since January of this year and found a handful of data points that could help explain the surge in cryptocurrency activity.
“We know that there are lots of coins out there and that there is a lot more interest in them than there is in any other asset,” Bailensen told CoinDesk.
“If you look at it as a platform, the tokens have the biggest potential for volume growth, as the value of tokens increases over time.
But we also know that they’re the least profitable for the companies involved.”
That’s because the tokens are mostly worthless.
If you buy one of the coins for $100, it is likely to have zero value.
However, if you buy a million of them for $1,000 each, you can expect to get $3,000 in returns in a few years.
“The number one thing you’re likely to get out of a token is a value in the hundreds of dollars,” Bainenson added.
“If you’re trying to buy a coin and you can’t get it for a price that will sell for $3 million, that’s a very low return.”
This is why, when it comes to cryptocurrencies, Bailens research team used data from the cryptocurrency market data site Coinmarketcap.com to determine the most valuable coins to find.
They found that the most commonly mined tokens have an average price of just $8, while the most widely mined coins are $5,000 to $9,999, with $4,000 being the most volatile.
“Mostly, what we’re seeing is a high-value token that’s being bought by a high number of people and is not going to go anywhere,” Bainsons co-founder, Dan Fong, told CoinMarketcap.
“The more valuable it is, the more people are going to use it.”
Bailens team then identified the top 10 most popular coins based on data collected by CryptoCurrency News and the Coinmarkethouse.
The top ten tokens were:Bitcoin – $931,928.90 Ethereum – $1.077,865.62 Ethereum Classic – $3.826,927.30 Ripple – $2,743,852.93 Monero – $4.873,569.94DASH – $7,093,824.00 Ripple 2.0 – $15,879,947.00 Bitcoin Cash – $10,619,918.00 Dash 2.1 – $26,541,958.00 Lisk – $858,821.00 Ethereum Classic 0.5 – $0.00Lisk 18.104.22.168 Monero 0.4 – $5.99DASH 2.3.0 Ripple 0.3 – $18.80Lisk 0.2.2 Ripple 2 – $12.10Bitcoin Cash 2.2 Ethereum Classic 2.7.0 Dash 1.4 Ripple 1.0Monero 0 Dash 0.1 Litecoin 0.0Lisk 1.2 Dash 0 Litecoin 1.3Cryptocurrencies are the first digital asset to ever be backed by a company.
In the case of Bitcoin, it’s the company itself that is backed by the currency, rather than the blockchain itself.
This makes it a currency backed by its developers and miners.
Cryptocompare, a firm that analyzes the blockchain for various cryptocurrencies, noted that a significant portion of the value behind these cryptocurrencies is tied to the amount they represent.
“While it is true that the majority of the cryptocurrency value in circulation is being generated by the developers, miners, and holders of these tokens, there is significant upside in the form of market capitalization for these tokens,” said Scott Shumaker, a company spokesperson. “These