Are cheap coins really that cheap?

In addition, it should be considered how cheap cheap coins actually are.

About 11,000 Euros is worth a bit coin according to the news spy

With this Bitcoin you own 59 ppb (parts per billion) of all existing Bitcoins. So you own 59 billionths of the total Bitcoin supply says the news spy: That doesn’t sound much, but the same calculation applied to Ripple means that with one Ripple you own just 10 trillionths of the current Ripple supply.

In order to compare the prices of all crypto currencies, it is therefore a good idea to ask yourself how expensive it would be to buy a corresponding share of 59ppb of the total number of coins. One possibility is the so-called Bitcoin Price Equivalence or BPE for short. The formula applies here:

BPE = supply of currency / supply of Bitcoin * price of a coin of the currency

After calculating the BPE it is still visible that Bitcoin is more expensive than all other crypto currencies.

But the BPE of Ripple does not differ dramatically from Bitcoin:

Name Rate in US dollars Market capitalisation in billions of US dollars Weekly rate change in percent Rate estimation Support in US dollars Resistance in US dollars
Bitcoin 4.021,74 70,00 1 rather bullish 3.727,34 4.555,03
XRP 0,36 14,56 -3 rather bearish 0,34 0,42
Ethereum 113,14 11,72 -1 rather bullish 92,81 127,72
Stellar 0,16 2,98 1 neutral 0,13 0,18
Bitcoin Cash 166.16 2.91 -12 neutral 146.00 208.57
EOS 2.83 2.57 -15 rather bearish 1.99 3.87
Litecoin 32,11 1,91 3 rather bullish 27,73 38,72
Tether 0,99 1,84 1 — — — —
Bitcoin SV 95.28 1.67 -10 — — — —
Cardano 0,04 1,05 7 rather bullish 0,03 0,05

As the table shows, the ten currencies with the BPE are all over 1,000 euros. In order to buy 59 ppb of the total supply of a crypto currency, an investment of at least 1,000 euros is required for the currencies shown.

When investing in a cheap coin, it is therefore always necessary to ask what share the investor buys in the currency and whether the project behind it can grow at all as hoped. Cheap therefore does not always have to mean more!