How Do We Value Litecoin and Crypto Currencies?

Bubbles abound and everyone is wondering where BTC, LTC and the cryptos in general get their value. Well, how do we determine their value? As this is a relatively new industry many of these metrics are still being worked out.

In the article below I believe the author Josh Olszewic,  does a pretty good job of presenting the Network Utility function of Litecoin.

Consider:  

"Unconfirmed transactions now stand at just over 700, at the time of writing, whereas Bitcoin (BTC) and Ethereum’s (ETH) unconfirmed transactions are well above 100,000 and 13,000 respectively. 31,000 of the bitcoin transactions have fees set to less than US$0.01, far below the current appropriate level. These unconfirmed transactions account for 0.87% for LTC, 1.5% for ETH, and 27% for BTC. The current median fee for LTC is US$0.0786.

LTC now has the lowest Network Value to Transactions ratio among available coins measured, suggesting the coin remains undervalued based on utility. The metric was devised by Willy Woo and Chris Burniske and is similar to the traditional Price to Earnings ratio when selecting stocks."


Read the rest here at Bravenewcoin.com.