Calculate Bitcoin Profit Profit Loss Excel

Want to start fresh after the crypto crash? Here is a comprehensive guide on how to invest and prosper over the long term.

Well its happened, the crypto market just experienced the worst crash since 2014, the bubble has burst. The idiocy of newbies FOMO-ing into anything with low nominal value lead to endless twitter timelines like this, and now nobody has any idea where the market settles. What do you do now?
In the following weeks it will be a good time to rethink your investment approach and how you arrive at your decisions. Just buying whatever is shilled on Twitter or Reddit and jumping from one crypto to another isn't going to work like it did these last two months.
The good news is that we're finally back closer and closer to our long term moving average which is much more healthy for entrants, the bad news is that the fear might continue compounding if outstanding issues are not dealt with. Tether is the big concern for me personally for reasons I've stated many times, but some relief in the short term may come if the SEC and CFTC meeting on February 6th goes well. Nobody really knows where the bottom is but I think we're now past the "irrational exhuberance" stage and we're entering a period of more serious inspection where cryptos will actually have to prove themselves as useful. I suspect hype artists like CryptoNick and John McAfee will fall out of favor.
But perhaps most importantly use this as a learning experience, don't try to point fingers now. The type of dumb behavior that people were engaging in that was rewarded in a bull market (chasing pumps, going all in on a shillcoin, following hype..etc) could only ever lead to what we are experiencing now. Just like so many people jumped on the crypto bandwagon during the bull run, they will just as quickly jump on whatever bandwagon is to be used to blame for the deflation of the bubble. Nobody who pumped money into garbage without any use case will accept that they themselves with their own investing behavior were the real reason for the gross overvaluation of most cryptocurrencies, and the inevitable crash.
So if you're looking for a fresh start after the massacre (or just want to get in now), here is a guide:

Part A: Making a Investment Strategy

This is your money, put some effort into investing it with an actual strategy. Some simple yet essential advice that should apply to everyone, regardless of individual strategy:
  1. Slow down and research each crypto that you're buying for at least a week.
  2. Don't buy something just because it has risen.
  3. Don't exit a position just because it has declined.
  4. Invest only as much as you can afford to lose.
  5. Prepare enter and exit strategies in advance.
First take some time to think about your ROI target, set your hold periods for each position and how much you are actually ready to risk losing.
ROI targets
A lot of young investors who are in crypto have unrealistic expectations about returns and risk. A lot of them have never invested in any other type of financial asset, and hence many seem to consider a 5-10% ROI in a month to be unexciting.
But its important to temper your hype and realize why we had this exponential growth in the last year and how unlikely it is that we see 10x returns in the next year. What we saw recently was Greater Fool Theory in action. Those unexciting returns of 5-10% a month are much more of the norm, and much more healthy for an alternative investment class.
You can think about setting a target in terms of the market ROI over a relevant holding period and then add or decrease based on your own risk profile.
Example: Calculating a 2 year ROI target
Lets say you want to hold for 2 years now, how could you set a realistic target to strive for? You could look at a historical 2 year return as a base, preferably during a period similar to what we're facing now. Now that we had a major correction, I think we can look at the two year period starting in 2015 after we had the 2014 crash. To calculate a 2 year CAGR starting in 2015:
Year Total Crypto Market Cap
Jan 1, 2015: $5.5 billion
Jan 1, 2017: $18 billion
Compounded annual growth return (CAGR): [(18/5.5)1/2]-1 = 81%
This annual return rate of 81% comes out to about 4.9% compounded monthly. This may not sound exciting to the lambo moon crowd, but it will keep you grounded in reality. You can aim for a higher return (say 2x of that 81% rate) if you choose to take on more risky propositions. I can't tell you what return target you should set for yourself, but just make sure its not depended on you needing to achieve continual near vertical parabolic price action in small cap shillcoins because that isn't sustainable.
Once you have a target you can construct your risk profile (low risk vs. high risk category coins) in your portfolio based on your target.
Risk Management
Everything you buy in crypto is risky, but it still helps to think of these 3 risk categories:
How much risk should you take on? That depends on your own life situation for one, but also it should be proportional to how much expertise you have in both financial analysis and technology.
The general starting point I would recommend is:
Some more core principles on risk management to consider:
You can think of each crypto having a risk factor that is the summation of the general crypto market risk (Rm), but also its own inherent risk specific to its own goals (Ri).
Rt = Rm +Ri
The market risk is something you cannot avoid, it is essentially the risk that is carried by the entire market over things like regulations. What you can minimize though the Ri, the specific risks with your crypto. That will depend on the team composition, geographic risks (for example Chinese coins like NEO carry regulatory risks specific to China), competition within the space and likelihood of adoption and other factors, which I'll describe in Part 2: Crypto Picking Methodology.
Portfolio Allocation
Along with thinking about your portfolio in terms of risk categories described above, I really find it helpful to think about the segments you are in. OnChainFX has some segment categorization but I generally like to bring it down to:
Think about your "Circle of Competence", your body of knowledge that allows you to evaluate an investment. Your ability to properly judge risk and potential is going to largely correlated to your understanding of the subject matter. If you don't know anything about how supply chains functions, how can you competently judge whether VeChain or WaltonChain will achieve adoption? If you don't understand anything about the tech when you read the Cardano paper, are you really able to determine how likely it is to be adopted?
Consider the historic correlations between your holdings. Generally when Bitcoin pumps, altcoins dump but at what rate depends on the coin. When Bitcoin goes sideways we tend to see pumping in altcoins, while when Bitcoin goes down, everything goes down.
You should diversify but really shouldn't be in much more than around 12 cryptos, because you simply don't have enough competency to accurately access the risk across every segment and for every type of crypto you come across. If you have over 20 different cryptos in your portfolio you should probably think about consolidating to a few sectors you understand well.

Part B: Crypto Picking Methodology (Due Dilligence)

Do you struggle on how to fundamentally analyze cryptocurrencies? Here is a 3-step methodology to follow to perform your due dilligence:

Step 1: Filtering and Research

There is so much out there that you can get overwhelmed. The best way to start is to think back to your own portfolio allocation strategy and what you would like to get more off. For example in my view enterprise-focused blockchain solutions will be important in the next few years, and so I look to create a list of various cryptos that are in that segment.
Upfolio has brief descriptions of the top 100 cryptos and is filterable by categories, for example you can click the "Enterprise" category and you have a neat list of VEN, FCT, WTC...etc.
Once you have a list of potential candidates, its time to read about them:
  • Critically evaluate the website. If it's a cocktail of nonsensical buzzwords, if its unprofessional and poorly made, stay away. Always look for a roadmap, compare to what was actually delivered so far. Always check the team, try to find them on LinkedIn and what they did in the past.
  • Read the whitepaper or business development plan. You should fully understand how this crypto functions and how its trying to create value. If there is no use case or if the use case does not require or benefit from a blockchain, move on.
  • Check the blockchain explorer. How is the token distribution across accounts? Are the big accounts selling? Try to figure out who the whales are (not always easy!) and what the foundation/founder account is based on the initial allocation.
  • Look at the Github repos, does it look empty or is there plenty of activity?
  • Search out the subreddit and look at a few Medium or Steem blogs about the coin. How "shilly" is the community, and how much engagement is there between developer and the community?
  • I would also go through the BitcoinTalk thread and Twitter mentions, judge both the length and quality of the discussion.
You can actually filter out a lot of scams and bad investments by simply keeping your eye out on the following red flags:
  • allocations that give way too much to the founder
  • guaranteed promises of returns (Bitcooonnneeeect!)
  • vague whitepapers filled with buzzwords
  • vague timelines and no clear use case
  • Github with no useful code and sparse activity
  • a team that is difficult to find information on

Step 2: Passing a potential pick through a checklist

Once you feel fairly confident that a pick is worth analyzing further, run them through a standardized checklist of questions. This is one I use, you can add other questions yourself:
Crypto Analysis Checklist
What is the problem or transactional inefficiency the coin is trying to solve?
What is the Dev Team like? What is their track record? How are they funded, organized?
How big is the market they're targeting?
Who is their competition and what does it do better?
What is the roadmap they created and how well have they kept to it?
What current product exists?
How does the token/coin actually derive value for the holder? Is there a staking mechanism or is it transactional?
Is there any new tech, and is it informational or governance based?
Can it be easily copied?
What are the weaknesses or problems with this crypto?
The last question is the most important.
This is where the riskiness of your crypto is evaluated, the Ri I talked about above. Here you should be able to accurate place the crypto into one of the three risk categories. I also like to run through this checklist of blockchain benefits and consider which specific properties of the blockchain are being used by the specific crypto to provide some increased utility over the current transactional method:
Benefits of Cryptocurrency
Decentralization - no need for a third party to agree or validate transactions.
Transparency and trust - As blockchain are shared, everyone can see what transactions occur. Useful for something like an online casino.
Immutability - It is extremely difficult to change a transaction once its been put onto a blockchain
Distributed availability - The system is spread on thousands of nodes on a P2P network, so its difficult to take the system down.
Security - cryptographically secured transactions provide integrity
Simplification and consolidation - a blockchain can serve as a shared ledger in industries where multiple entities previously kept their own data sources
Quicker Settlement - In the financial industry when we're dealing with post-trade settlement, a blockchain can drastically increase the speed of verification
Cost - in some cases avoiding a third party verification would drastically reduce costs.

Step 3: Create a valuation model

You don't need to get into full modeling or have a financial background. Even a simple model that just tries to derive a valuation through relative terms will put you above most crypto investors. Some simple valuation methods that anyone can do:
Probablistic Scenario Valuation
This is all about thinking of scenarios and probability, a helpful exercise in itself. For example: Bill Miller, a prominent value investor, wrote a probabilistic valuation case for Bitcoin in 2015. He looked at two possible scenarios for probabalistic valuation:
  1. becoming a store-of-value equal to gold (a $6.4 trillion value), with a .25% probability of occurring
  2. replacing payment processors like VISA, MasterCard, etc. (a $350 million dollar value) with a 2.5% probability
Combining those scenarios would give you the total expected market cap: (0.25% x 6.4 trillion) + (2.5% x 350 million). Divide this by the outstanding supply and you have your valuation.
Metcalfe's Law
Metcalfe's Law which states that the value of a network is proportional to the square of the number of connected users of the system (n2). So you can compare various currencies based on their market cap and square of active users or traffic. We can alter this to crypto by thinking about it in terms of both users and transactions:
For example, compare the Coinbase pairs:
Metric Bitoin Ethereum Litecoin
Market Cap $152 Billion $93 Billion $7.3 Billion
Daily Transactions (last 24hrs) 249,851 1,051,427 70,397
Active Addresses (Peak 1Yr) 1,132,000 1,035,000 514,000
Metcalfe Ratio (Transactions Based) 2.43 0.08 1.47
Metcalfe Ratio (Address Based) 0.12 0.09 0.03
Generally the higher the ratio, the higher the valuation given for each address/transaction.
Market Cap to Industry comparisons
Another easy one is simply looking at the total market for the industry that the coin is supposedly targeting and comparing it to the market cap of the coin. Think of the market cap not only with circulating supply like its shown on CMC but including total supply. For example the total supply for Dentacoin is 1,841,395,638,392, and when multiplied by its price in early January we get a market cap that is actually higher than the entire industry it aims to disrupt: Dentistry.
More complex valuation models
If you would like to get into more fleshed out models with Excel, I highly recommend Chris Burniske's blog about using Quantity Theory of Money to build an equivalent of a DCF analysis for crypto.
Here is an Excel file example of OMG done by Nodar Janashia using Chris' model .
You should create multiple scenarios with multiple assumptions, both positive and negative. Have a base scenario and then moderately optimistic/pessimistic and highly optimistic/pessimistic scenario.
Personally I like to see at least a 50% upward potential before investing from my moderately pessimistic scenario, but you can set your own safety margin.
The real beneficial thing about modelling isn't even the price or valuation comparisons it spits out, but that it forces you to think about why the coin has value and what your own assumption about the future are. For example the discount rate you apply to the net present utility formula drastically affects the valuation, and it reflects your own assumptions of how risky the crypto is. What exactly would be a reasonable discount rate? What about the digital economy you are assuming for the coin, what levers affects its size and adoption and how likely are your assumptions to come true? You'll be a drastically more intelligent investor if you think about the fundamental variables that give your coin the market cap you think it should hold.

Summing it up

The time for lambo psychosis is over. But that's no reason to feel down, this is a new day and what many were waiting for. I've put together in one place here how to construct a portfolio allocation (taking into consideration risk and return targets), and how to go through a systematic crypto picking method. I'm won't tell you what to buy, you should always decide that for yourself and DYOR. But as long as you follow a rational and thorough methodology (feel free to modify anything I said above to suit your own needs) you will feel pretty good about your investments, even in times like these.
Edit: Also get a crypto prediction ferret. You won't regret it.
submitted by arsonbunny to CryptoCurrency [link] [comments]

The Massive Value Prop of SUMOkoin: a Corporate Lawyer's Analysis

Can you guys help us all out and upvote those posts?
Trying to do my part to spread the word.
MERRY CHRISTMAS TEAM! (SKIP TO END FOR TLDR :)
[Note: this post was originally drafted on Christmas Day and subsequently edited]
[Disclaimer: I am posting this in triplicate on cryptocurrency cryptomarkets monero for visibility]

***Intro*** 
This is my first try at one of these. I am going to make a case for SUMOkoin (SUMO on Cryptopia) from a pure VALUE perspective. I’ve been researching privacy coins deeply and feel I’ve reached a sufficient conclusion to merit sharing SUMO.
SUMOkoin is a fork of MONERO (XMR). In my opinion, XMR is hands down the most undervalued coin in the top 15. Once people figure out how to value privacy into the value of a coin, XMR, along with the other privacy coins like SUMO, will skyrocket.
I am not here to argue SUMO is superior to XMR. That’s not what this post is about. I don’t find debating the merits of SUMO vs. XMR interesting as investing in SUMO has nothing to do with SUMO overtaking XMR. If anything, I’d argue that the merits of XMR underline the value of SUMO. What I do find interesting is return on investment (“ROI”). If you do want to argue about XMR vs. SUMO, I can point you to this infographic: https://i.redd.it/0eqfkg1hq2501.jpg

***Background*** 
I’m a corporate lawyer in Silicon Valley. my practice focuses on venture capital financing (“VC)”) and mergers & acquisitions (“M&A”). basically I spend all day every fucking day reviewing and revising cap tables, stock purchase agreements and merger agreements.
I started using BTC in 2014 in conjunction with silk road and TOR. I had a minor conniption when I recently calculated how much BTC I handled in 2014. My 2017 has been good with IOTA at sub $0.30, POWR at $0.12, ENJIN at $0.02, REQ at $0.05, ENIGMA, and PHORE.
My crypto investing philosophy is based on betting long odds. As Warren Buffet said, consolidate to get rich, diversify to stay rich. That said I strongly recommend you have an IRA and/or 401(k) in place prior to venturing into crypto. But when it comes to crypto, I’d happily strike out several times to have a chance at hitting a 100x. This is probably born out of working with VCs who do the same only with companies, not coins. I view myself as a mini-VC in the cryptosphere.
__
The Number 1 thing I've taken away from corporate law is that it pays to get in EARLY
Did you know that the typical founder buys their shares for $0.00001 per share? So if a founder owns 5 million shares, they bought those shares for $50 total. The typical IPO goes out the door at $10-20 per share. My iPhone calculator says ERROR when it tries to divide $10/0.00001 because it runs out of screen space.
At the time of this writing, SUMO has a Marketcap of $5 million. Given it’s market cap and its XMR-likeness, I am positive SUMO is the best value investment in the Privacy Coin arena at this time. PHR is another competitor, but at $50m market cap, I feel it has lost its mega potential for you and me.

***Merits of SUMO*** 
So what’s so good about SUMOkoin? Didn’t you say it was just a Monero knock-off?
1) Well, sort of. SUMO is based on CryptoNote and was conceived from a fork of Monero, with a little bit of extra privacy thrown in. It would not be wrong to think SUMO is to Litecoin as XMR is to Bitcoin.
2) Increased Privacy. Which brings us to point 2. SUMO is doing a couple things to increase privacy and nimbleness simultaneously. Monero currently does many of these too — though at the fork MONERO could not. Don’t forget Monero is also 5.5 billion market cap to SUMO’s 5 million.
a) RingCT. All transactions are RingCT (ring confidential transactions) and the minimum “mixin” transactions is 13 (12 plus the original transaction) which gives passes the threshold to resist blockchain attacks. No transactions made on the SUMO blockchain can ever be traced to the actual participants. Nifty huh?
b) Sub-addresses. The wallet deploys disposable sub-addresses to conceal your real sumo wallet address even from senders (who typically would need to know your actual address to send currency). Monero also does this.
3) Fungibility aka “Digital Cash”. This term gets thrown about a bunch, but basically, it means ‘how close is this coin to cash in terms of usage?’ Well, Sumokoin is one of a few cryptos that can boast true fungibility — SUMO can act just like physical cash i.e. no other people can find where the money comes from and how many have been transferred.
5) Mining Made Easy Mode. Seeing as SUMO was a fork, and not an ICO, they didn’t have to rewrite the wheel. Instead they focused on putting together some solid fundamentals like a great wallet and a dedicated mining application that lets you start mining with your current CPU. Check out the “Sumojoin Easy Minder” - simply run and start mining.
6) Intuitive and Secure Wallet. This shouldn’t come as a surprise, yet in this day and age, apparently it is not a prereq. They already have a GUI wallet, litewallet, plus those unlimited sub-addresses to boot that I mentioned above.
7) Decentralization. SUMO is botnet-proof, and therefore botnet mining resistant. When a botnet joins a mining pool, it adjusts the mining difficulty, thereby balancing the difficulty level of mining.
8) Dev Team // Locked Coins // Future Development Funds. There are lots of things that make this coin a ‘go.’ but perhaps the most overlooked in crypto is that the devs have done an excellent job delivering ahead of schedule. If you’re an engineer or have managed projects, you know how difficult hitting projected deadlines can be. These guys update github very frequently and there is a high degree of visibility. The devs have also time-locked their pre-mine in a publicly view-able wallet for years so they aren't bailing out with a pump and dump. The dev team is based in Japan.
9) Broad Appeal. If marketed properly, SUMO has the ability to appeal to older individuals venturing into crypto due to the fungibility / similarities to cash. This is not different than XMR, and I expect it will be exploited in 2018 by all privacy coins. It could breed familiarity with new money, and new money is the future of crypto.
10) Marketing. Which brings me to my final point - and it happens to be a weakness. SUMO needs a community effort to distribute information to the masses. A good example is Vert Coin. Their team is very good at disseminating information. I’m not talking about hyping a coin; I’m talking about how effectively can you spread facts about your product to the masses.
To get mainstream SUMO needs something like this VertCoin post: https://www.reddit.com/vertcoin/comments/7ixkbf/vertbase_a_vertcoin_to_usd_exchange/

***Market Cap Discussion*** 
For a coin with using Monero’s tech, 5 million is minuscule. For any coin, 5 mil is nothing. Some MC comparisons [as of December 25th, 2017]:

Let's talk about market cap ("MC") for a minute.
It gets tossed around a lot, but I don’t think people appreciate how important getting in early can be. Say you buy into SUMO at 5 million MC. Things go well and 20 million new money gets poured into SUMO. Now the MC is 25 million. Your gains are 4x (you invested $1,000 and now you have 5,000, netting 4,000).
Now let’s says say you bought at 10 million instead of 5 million. $15 mill gets poured in until the MC again reaches 25 mil. Your gains are 1.5x (you put in $1,000, you now have 2,500, netting 1,500)
Remember: investing at 5 mil MC vs. 10 mil MC represents an EXTREMELY subtle shift in time of investment (“TOI”). But the difference in net profit is dramatic. the biggest factor is that your ROI multiplier is locked in at your TOI — meaning every 25 million that gets added to the MC pot, you 4X you're returns.
Example MC = 100
I strongly believe SUMO can and will 20x in Q1 2018 and 100x by end of Q4 2018 reach $500,000 MC. There is ample room for a tricked out Monero clone at 500 MC. That’s 100x.
Guess how many coins have 500 mil market caps? 48 as of this writing. 48! Have many of these coins with about ~500 mil MC have you heard of?
MaidSafeCoin?
Status?
Decred?
Veritaseum?
SUMO has potential to surpass those.

***The Importance of Privacy*** 
I want to close with a brief discussion of privacy as it relates to fundamental rights and as to crypto. 2018 will be remembered as the Year of Privacy Coins. Privacy has always been at the core of crypto. This is no coincidence. “Privacy” is the word we have attached to the concept of possessing the freedom to do as you please within the law without explaining yourself to the government or financial institution.
Discussing privacy from a financial perspective is difficult because it has very deep political significance. But that is precisely why it is so valuable.
Privacy is the right of billions of people not to be surveilled. We live in a world where every single transaction you do through the majority financial system is recorded, analyzed and sold — and yet where the money goes is completely opaque. Our transactions are visible from the top, but we can’t see up. Privacy coins turn that upside down.
Privacy is a human right. It is the guarantor of American constitutional freedom. It is the cornerstone of freedoms of expression, association, political speech and all our other freedoms for that matter. And privacy coins are at the root of that freedom. What the internet did for freedom of information, privacy coins will do for freedom of financial transactions.

***TL;DR:*** 
2018 = Year of Privacy Coins // Monero is legit aka is the most undervalued coin in the Top 15 // SUMO is low MC clone meaning great ROI opportunity // ROI is everything // did I mention ROI is everything? // Consolidate to get rich; diversify to stay rich // extra strong code foundation + strong dev team + SUMO team financial incentives locked in multi-year vesting schedule // un-limited sub-addresses associated with Wallet & Litewallet means complete anonynimity // RingCT w/ 12+1 minimum mixins means complete confidentiality // legit Fungibility (like cash) means MARKET VALUE of privacy is baked into the currency // Mining Made Easy for those interested/able // is Botnet mining resistant // has unique market appeal to UNSOPHISTICATED DEEP pockets due to similarity to cash.

Legal Disclaimer
THIS POST AND ANY SUBSEQUENT STATEMENTS BY THE AUTHOR DO NOT CONSTITUTE LEGAL OR FINANCIAL ADVICE AND IS NOT INTENDED TO BE LEGAL OR FINANCIAL ADVICE OR RELIED UPON. NO REFERENCES TO THIS POST SHALL BE CONSTRUED AS LEGAL OR FINANCIAL ADVICE. THIS POST REPRESENTS THE LONE OPINION OF A NON-SOPHISTICATED INVESTOR.
submitted by UCBerzerkeley to sumokoin [link] [comments]

The Massive Value Prop of SUMOkoin: a Corporate Lawyer's Analysis

https://coinmarketcap.com/currencies/sumokoin/
MERRY CHRISTMAS TEAM! (SKIP TO END FOR TLDR :)
[Note: this post was originally drafted on Christmas Day and subsequently edited]
[Disclaimer: I am posting this in triplicate on cryptocurrency cryptomarkets monero for visibility]

***Intro*** 
This is my first try at one of these. I am going to make a case for SUMOkoin (SUMO on Cryptopia) from a pure VALUE perspective. I’ve been researching privacy coins deeply and feel I’ve reached a sufficient conclusion to merit sharing SUMO.
SUMOkoin is a fork of MONERO (XMR). In my opinion, XMR is hands down the most undervalued coin in the top 15. Once people figure out how to value privacy into the value of a coin, XMR, along with the other privacy coins like SUMO, will skyrocket.
I am not here to argue SUMO is superior to XMR. That’s not what this post is about. I don’t find debating the merits of SUMO vs. XMR interesting as investing in SUMO has nothing to do with SUMO overtaking XMR. If anything, I’d argue that the merits of XMR underline the value of SUMO. What I do find interesting is return on investment (“ROI”). If you do want to argue about XMR vs. SUMO, I can point you to this infographic: https://i.redd.it/0eqfkg1hq2501.jpg

***Background*** 
I’m a corporate lawyer in Silicon Valley. my practice focuses on venture capital financing (“VC)”) and mergers & acquisitions (“M&A”). basically I spend all day every fucking day reviewing and revising cap tables, stock purchase agreements and merger agreements.
I started using BTC in 2014 in conjunction with silk road and TOR. I had a minor conniption when I recently calculated how much BTC I handled in 2014. My 2017 has been good with IOTA at sub $0.30, POWR at $0.12, ENJIN at $0.02, REQ at $0.05, ENIGMA, and PHORE.
My crypto investing philosophy is based on betting long odds. As Warren Buffet said, consolidate to get rich, diversify to stay rich. That said I strongly recommend you have an IRA and/or 401(k) in place prior to venturing into crypto. But when it comes to crypto, I’d happily strike out several times to have a chance at hitting a 100x. This is probably born out of working with VCs who do the same only with companies, not coins. I view myself as a mini-VC in the cryptosphere.
__
The Number 1 thing I've taken away from corporate law is that it pays to get in EARLY
Did you know that the typical founder buys their shares for $0.00001 per share? So if a founder owns 5 million shares, they bought those shares for $50 total. The typical IPO goes out the door at $10-20 per share. My iPhone calculator says ERROR when it tries to divide $10/0.00001 because it runs out of screen space.
At the time of this writing, SUMO has a Marketcap of $5 million. Given it’s market cap and its XMR-likeness, I am positive SUMO is the best value investment in the Privacy Coin arena at this time. PHR is another competitor, but at $50m market cap, I feel it has lost its mega potential for you and me.

***Merits of SUMO*** 
So what’s so good about SUMOkoin? Didn’t you say it was just a Monero knock-off?
1) Well, sort of. SUMO is based on CryptoNote and was conceived from a fork of Monero, with a little bit of extra privacy thrown in. It would not be wrong to think SUMO is to Litecoin as XMR is to Bitcoin.
2) Increased Privacy. Which brings us to point 2. SUMO is doing a couple things to increase privacy and nimbleness simultaneously. Monero currently does many of these too — though at the fork MONERO could not. Don’t forget Monero is also 5.5 billion market cap to SUMO’s 5 million.
a) RingCT. All transactions are RingCT (ring confidential transactions) and the minimum “mixin” transactions is 13 (12 plus the original transaction) which gives passes the threshold to resist blockchain attacks. No transactions made on the SUMO blockchain can ever be traced to the actual participants. Nifty huh?
b) Sub-addresses. The wallet deploys disposable sub-addresses to conceal your real sumo wallet address even from senders (who typically would need to know your actual address to send currency). Monero also does this.
3) Fungibility aka “Digital Cash”. This term gets thrown about a bunch, but basically, it means ‘how close is this coin to cash in terms of usage?’ Well, Sumokoin is one of a few cryptos that can boast true fungibility — SUMO can act just like physical cash i.e. no other people can find where the money comes from and how many have been transferred.
5) Mining Made Easy Mode. Seeing as SUMO was a fork, and not an ICO, they didn’t have to rewrite the wheel. Instead they focused on putting together some solid fundamentals like a great wallet and a dedicated mining application that lets you start mining with your current CPU. Check out the “Sumojoin Easy Minder” - simply run and start mining.
6) Intuitive and Secure Wallet. This shouldn’t come as a surprise, yet in this day and age, apparently it is not a prereq. They already have a GUI wallet, litewallet, plus those unlimited sub-addresses to boot that I mentioned above.
7) Decentralization. SUMO is botnet-proof, and therefore botnet mining resistant. When a botnet joins a mining pool, it adjusts the mining difficulty, thereby balancing the difficulty level of mining.
8) Dev Team // Locked Coins // Future Development Funds. There are lots of things that make this coin a ‘go.’ but perhaps the most overlooked in crypto is that the devs have done an excellent job delivering ahead of schedule. If you’re an engineer or have managed projects, you know how difficult hitting projected deadlines can be. These guys update github very frequently and there is a high degree of visibility. The devs have also time-locked their pre-mine in a publicly view-able wallet for years so they aren't bailing out with a pump and dump. The dev team is based in Japan.
9) Broad Appeal. If marketed properly, SUMO has the ability to appeal to older individuals venturing into crypto due to the fungibility / similarities to cash. This is not different than XMR, and I expect it will be exploited in 2018 by all privacy coins. It could breed familiarity with new money, and new money is the future of crypto.
10) Marketing. Which brings me to my final point - and it happens to be a weakness. SUMO needs a community effort to distribute information to the masses. A good example is Vert Coin. Their team is very good at disseminating information. I’m not talking about hyping a coin; I’m talking about how effectively can you spread facts about your product to the masses.
To get mainstream SUMO needs something like this VertCoin post: https://www.reddit.com/vertcoin/comments/7ixkbf/vertbase_a_vertcoin_to_usd_exchange/

***Market Cap Discussion*** 
For a coin with using Monero’s tech, 5 million is minuscule. For any coin, 5 mil is nothing. Some MC comparisons [as of December 25th, 2017]:

Let's talk about market cap ("MC") for a minute.
It gets tossed around a lot, but I don’t think people appreciate how important getting in early can be. Say you buy into SUMO at 5 million MC. Things go well and 20 million new money gets poured into SUMO. Now the MC is 25 million. Your gains are 4x (you invested $1,000 and now you have 5,000, netting 4,000).
Now let’s says say you bought at 10 million instead of 5 million. $15 mill gets poured in until the MC again reaches 25 mil. Your gains are 1.5x (you put in $1,000, you now have 2,500, netting 1,500)
Remember: investing at 5 mil MC vs. 10 mil MC represents an EXTREMELY subtle shift in time of investment (“TOI”). But the difference in net profit is dramatic. the biggest factor is that your ROI multiplier is locked in at your TOI — meaning every 25 million that gets added to the MC pot, you 4X you're returns.
Example MC = 100
I strongly believe SUMO can and will 20x in Q1 2018 and 100x by end of Q4 2018 reach $500,000 MC. There is ample room for a tricked out Monero clone at 500 MC. That’s 100x.
Guess how many coins have 500 mil market caps? 48 as of this writing. 48! Have many of these coins with about ~500 mil MC have you heard of?
MaidSafeCoin?
Status?
Decred?
Veritaseum?
SUMO has potential to surpass those.

***The Importance of Privacy*** 
I want to close with a brief discussion of privacy as it relates to fundamental rights and as to crypto. 2018 will be remembered as the Year of Privacy Coins. Privacy has always been at the core of crypto. This is no coincidence. “Privacy” is the word we have attached to the concept of possessing the freedom to do as you please within the law without explaining yourself to the government or financial institution.
Discussing privacy from a financial perspective is difficult because it has very deep political significance. But that is precisely why it is so valuable.
Privacy is the right of billions of people not to be surveilled. We live in a world where every single transaction you do through the majority financial system is recorded, analyzed and sold — and yet where the money goes is completely opaque. Our transactions are visible from the top, but we can’t see up. Privacy coins turn that upside down.
Privacy is a human right. It is the guarantor of American constitutional freedom. It is the cornerstone of freedoms of expression, association, political speech and all our other freedoms for that matter. And privacy coins are at the root of that freedom. What the internet did for freedom of information, privacy coins will do for freedom of financial transactions.

***TL;DR:*** 
2018 = Year of Privacy Coins // Monero is legit aka is the most undervalued coin in the Top 15 // SUMO is low MC clone meaning great ROI opportunity // ROI is everything // did I mention ROI is everything? // Consolidate to get rich; diversify to stay rich // extra strong code foundation + strong dev team + SUMO team financial incentives locked in multi-year vesting schedule // un-limited sub-addresses associated with Wallet & Litewallet means complete anonynimity // RingCT w/ 12+1 minimum mixins means complete confidentiality // legit Fungibility (like cash) means MARKET VALUE of privacy is baked into the currency // Mining Made Easy for those interested/able // is Botnet mining resistant // has unique market appeal to UNSOPHISTICATED DEEP pockets due to similarity to cash.

Legal Disclaimer
THIS POST AND ANY SUBSEQUENT STATEMENTS BY THE AUTHOR DO NOT CONSTITUTE LEGAL OR FINANCIAL ADVICE AND IS NOT INTENDED TO BE LEGAL OR FINANCIAL ADVICE OR RELIED UPON. NO REFERENCES TO THIS POST SHALL BE CONSTRUED AS LEGAL OR FINANCIAL ADVICE. THIS POST REPRESENTS THE LONE OPINION OF A NON-SOPHISTICATED INVESTOR.
submitted by UCBerzerkeley to CryptoCurrency [link] [comments]

The Massive Value Prop of SUMOkoin: a Corporate Lawyer's Analysis

https://coinmarketcap.com/currencies/sumokoin/
MERRY CHRISTMAS TEAM! (SKIP TO END FOR TLDR :)
[Note: this post was originally drafted on Christmas Day and subsequently edited]
[Disclaimer: I am posting this in triplicate on cryptocurrency cryptomarkets monero for visibility]

***Intro*** 
This is my first try at one of these. I am going to make a case for SUMOkoin (SUMO on Cryptopia) from a pure VALUE perspective. I’ve been researching privacy coins deeply and feel I’ve reached a sufficient conclusion to merit sharing SUMO.
SUMOkoin is a fork of MONERO (XMR). In my opinion, XMR is hands down the most undervalued coin in the top 15. Once people figure out how to value privacy into the value of a coin, XMR, along with the other privacy coins like SUMO, will skyrocket.
I am not here to argue SUMO is superior to XMR. That’s not what this post is about. I don’t find debating the merits of SUMO vs. XMR interesting as investing in SUMO has nothing to do with SUMO overtaking XMR. If anything, I’d argue that the merits of XMR underline the value of SUMO. What I do find interesting is return on investment (“ROI”). If you do want to argue about XMR vs. SUMO, I can point you to this infographic: https://i.redd.it/0eqfkg1hq2501.jpg

***Background*** 
I’m a corporate lawyer in Silicon Valley. my practice focuses on venture capital financing (“VC)”) and mergers & acquisitions (“M&A”). basically I spend all day every fucking day reviewing and revising cap tables, stock purchase agreements and merger agreements.
I started using BTC in 2014 in conjunction with silk road and TOR. I had a minor conniption when I recently calculated how much BTC I handled in 2014. My 2017 has been good with IOTA at sub $0.30, POWR at $0.12, ENJIN at $0.02, REQ at $0.05, ENIGMA, and PHORE.
My crypto investing philosophy is based on betting long odds. As Warren Buffet said, consolidate to get rich, diversify to stay rich. That said I strongly recommend you have an IRA and/or 401(k) in place prior to venturing into crypto. But when it comes to crypto, I’d happily strike out several times to have a chance at hitting a 100x. This is probably born out of working with VCs who do the same only with companies, not coins. I view myself as a mini-VC in the cryptosphere.
__
The Number 1 thing I've taken away from corporate law is that it pays to get in EARLY
Did you know that the typical founder buys their shares for $0.00001 per share? So if a founder owns 5 million shares, they bought those shares for $50 total. The typical IPO goes out the door at $10-20 per share. My iPhone calculator says ERROR when it tries to divide $10/0.00001 because it runs out of screen space.
At the time of this writing, SUMO has a Marketcap of $5 million. Given it’s market cap and its XMR-likeness, I am positive SUMO is the best value investment in the Privacy Coin arena at this time. PHR is another competitor, but at $50m market cap, I feel it has lost its mega potential for you and me.

***Merits of SUMO*** 
So what’s so good about SUMOkoin? Didn’t you say it was just a Monero knock-off?
1) Well, sort of. SUMO is based on CryptoNote and was conceived from a fork of Monero, with a little bit of extra privacy thrown in. It would not be wrong to think SUMO is to Litecoin as XMR is to Bitcoin.
2) Increased Privacy. Which brings us to point 2. SUMO is doing a couple things to increase privacy and nimbleness simultaneously. Monero currently does many of these too — though at the fork MONERO could not. Don’t forget Monero is also 5.5 billion market cap to SUMO’s 5 million.
a) RingCT. All transactions are RingCT (ring confidential transactions) and the minimum “mixin” transactions is 13 (12 plus the original transaction) which gives passes the threshold to resist blockchain attacks. No transactions made on the SUMO blockchain can ever be traced to the actual participants. Nifty huh?
b) Sub-addresses. The wallet deploys disposable sub-addresses to conceal your real sumo wallet address even from senders (who typically would need to know your actual address to send currency). Monero also does this.
3) Fungibility aka “Digital Cash”. This term gets thrown about a bunch, but basically, it means ‘how close is this coin to cash in terms of usage?’ Well, Sumokoin is one of a few cryptos that can boast true fungibility — SUMO can act just like physical cash i.e. no other people can find where the money comes from and how many have been transferred.
5) Mining Made Easy Mode. Seeing as SUMO was a fork, and not an ICO, they didn’t have to rewrite the wheel. Instead they focused on putting together some solid fundamentals like a great wallet and a dedicated mining application that lets you start mining with your current CPU. Check out the “Sumojoin Easy Minder” - simply run and start mining.
6) Intuitive and Secure Wallet. This shouldn’t come as a surprise, yet in this day and age, apparently it is not a prereq. They already have a GUI wallet, litewallet, plus those unlimited sub-addresses to boot that I mentioned above.
7) Decentralization. SUMO is botnet-proof, and therefore botnet mining resistant. When a botnet joins a mining pool, it adjusts the mining difficulty, thereby balancing the difficulty level of mining.
8) Dev Team // Locked Coins // Future Development Funds. There are lots of things that make this coin a ‘go.’ but perhaps the most overlooked in crypto is that the devs have done an excellent job delivering ahead of schedule. If you’re an engineer or have managed projects, you know how difficult hitting projected deadlines can be. These guys update github very frequently and there is a high degree of visibility. The devs have also time-locked their pre-mine in a publicly view-able wallet for years so they aren't bailing out with a pump and dump. The dev team is based in Japan.
9) Broad Appeal. If marketed properly, SUMO has the ability to appeal to older individuals venturing into crypto due to the fungibility / similarities to cash. This is not different than XMR, and I expect it will be exploited in 2018 by all privacy coins. It could breed familiarity with new money, and new money is the future of crypto.
10) Marketing. Which brings me to my final point - and it happens to be a weakness. SUMO needs a community effort to distribute information to the masses. A good example is Vert Coin. Their team is very good at disseminating information. I’m not talking about hyping a coin; I’m talking about how effectively can you spread facts about your product to the masses.
To get mainstream SUMO needs something like this VertCoin post: https://www.reddit.com/vertcoin/comments/7ixkbf/vertbase_a_vertcoin_to_usd_exchange/

***Market Cap Discussion*** 
For a coin with using Monero’s tech, 5 million is minuscule. For any coin, 5 mil is nothing. Some MC comparisons [as of December 25th, 2017]:

Let's talk about market cap ("MC") for a minute.
It gets tossed around a lot, but I don’t think people appreciate how important getting in early can be. Say you buy into SUMO at 5 million MC. Things go well and 20 million new money gets poured into SUMO. Now the MC is 25 million. Your gains are 4x (you invested $1,000 and now you have 5,000, netting 4,000).
Now let’s says say you bought at 10 million instead of 5 million. $15 mill gets poured in until the MC again reaches 25 mil. Your gains are 1.5x (you put in $1,000, you now have 2,500, netting 1,500)
Remember: investing at 5 mil MC vs. 10 mil MC represents an EXTREMELY subtle shift in time of investment (“TOI”). But the difference in net profit is dramatic. the biggest factor is that your ROI multiplier is locked in at your TOI — meaning every 25 million that gets added to the MC pot, you 4X you're returns.
Example MC = 100
I strongly believe SUMO can and will 20x in Q1 2018 and 100x by end of Q4 2018 reach $500,000 MC. There is ample room for a tricked out Monero clone at 500 MC. That’s 100x.
Guess how many coins have 500 mil market caps? 48 as of this writing. 48! Have many of these coins with about ~500 mil MC have you heard of?
MaidSafeCoin?
Status?
Decred?
Veritaseum?
SUMO has potential to surpass those.

***The Importance of Privacy*** 
I want to close with a brief discussion of privacy as it relates to fundamental rights and as to crypto. 2018 will be remembered as the Year of Privacy Coins. Privacy has always been at the core of crypto. This is no coincidence. “Privacy” is the word we have attached to the concept of possessing the freedom to do as you please within the law without explaining yourself to the government or financial institution.
Discussing privacy from a financial perspective is difficult because it has very deep political significance. But that is precisely why it is so valuable.
Privacy is the right of billions of people not to be surveilled. We live in a world where every single transaction you do through the majority financial system is recorded, analyzed and sold — and yet where the money goes is completely opaque. Our transactions are visible from the top, but we can’t see up. Privacy coins turn that upside down.
Privacy is a human right. It is the guarantor of American constitutional freedom. It is the cornerstone of freedoms of expression, association, political speech and all our other freedoms for that matter. And privacy coins are at the root of that freedom. What the internet did for freedom of information, privacy coins will do for freedom of financial transactions.

***TL;DR:*** 
2018 = Year of Privacy Coins // Monero is legit aka is the most undervalued coin in the Top 15 // SUMO is low MC clone meaning great ROI opportunity // ROI is everything // did I mention ROI is everything? // Consolidate to get rich; diversify to stay rich // extra strong code foundation + strong dev team + SUMO team financial incentives locked in multi-year vesting schedule // un-limited sub-addresses associated with Wallet & Litewallet means complete anonynimity // RingCT w/ 12+1 minimum mixins means complete confidentiality // legit Fungibility (like cash) means MARKET VALUE of privacy is baked into the currency // Mining Made Easy for those interested/able // is Botnet mining resistant // has unique market appeal to UNSOPHISTICATED DEEP pockets due to similarity to cash.

Legal Disclaimer
THIS POST AND ANY SUBSEQUENT STATEMENTS BY THE AUTHOR DOES NOT CONSTITUTE LEGAL OR FINANCIAL ADVICE AND IS NOT INTENDED TO BE LEGAL OR FINANCIAL ADVICE OR RELIED UPON. NO REFERENCES TO THIS POST SHALL BE CONSTRUED AS LEGAL OR FINANCIAL ADVICE. THIS POST REPRESENTS THE LONE OPINION OF A NON-SOPHISTICATED INVESTOR.
submitted by UCBerzerkeley to CryptoMarkets [link] [comments]

LITECOIN CASH MINING ANTMINER S9 How to Calculate Mining Profits Bitcoin mining profit calculator Cryptocurrency Mining Calculator - Cryptocurrency Mining Rig Calculator LITECOIN IS A GREAT STORE OF VALUE?? HOW UNDERVALUED IS LITECOIN FOR THE LONG TERM??

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LITECOIN CASH MINING ANTMINER S9

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