/biz/ - Business & Finance

https://www.youtube.com/watch?v=gFmKlkhoOXY

Because I did the math. Check the end of the video. Even if we assume that LINK is the only oracle (it isn't) and that it's transaction fees will be half as high as the blockchains they work on (they won't be) it is still overvalued as a percentage of the crypto-currency ecosystem. Literally do the math. LINK's value comes from transaction fees of people using its Oracles for smart contracts. So estimate the value of transaction fees going to Oracles as a percentage of the value of the crypto-currency ecosystem as a whole and then compare that to the value of ChainLINK against the rest of the crypto-currency ecosystem as a whole. What you'll find is that ChainLINK is already overvalued compared to the crypto-currency ecosystem. When ChainLink was $0.46 a coin (when I made this video), with 1 billion coins it is valued at $460 million. That is 1/350th the value of Crypto-currency network. For a company whose value is created by the transaction fees paid to Oracles which is a small part of the transaction fee for a miniscule number of transactions you can't justify that price ratio. Until its price drops substantially it is better to buy crypto-currencies as it will get you better returns. That's just basic math, bud.