There are many ways to value investments – be they cash generating or purely speculative. In the case of the “MimbleWimbleTrinity”coins - MWC, Grin, and Beam – MWC, which is was purposefully created as a premium investment asset, dominates in all categories. Thus, following its December 11th airdrop claim process – and subsequent, in process exchanges listings - it would not be surprising if it rapidly becomes the most valuable.
As I wrote yesterday, barriers to entry in the MimbleWimble space have been erected so high – thus, making it highly unlikely another material MimbleWimble coin emerges. Consequently, MWC may well become the most valuable asset in the most powerfully bullish crypto subsector.
First,we have MWC’s distribution method – of a free BTC airdrop, in which 30% of lifetime supply is being handed out, at a ratio of 40.41, to each of the 148,474 Bitcoin registered (i.e, roughly 1% of the entire BTC float). So, not only will the vast majority of initial holders have a zero cost basis – and thus, the ability to play with “house money” – but a “loyalty factor” not present in Grin and Beam.
Second,we have the yield factor; unique in the MimbleWimbleTrinity - and with very few exceptions, all of crypto. That is, the “MWC HODL” program, that will reward passive holders with an additional 10% of lifetime supply - via plan details that will be disseminated after the airdrop claim process.
Third,we have the “simple” scarcity metric of lifetime supply cap – as MWC’s cap is just 20 million, versus 263 million for Beam and infinity for Grin. Some say supply cap is not material, as cryptocurrencies can be bought for fractions as small as one-millionth of a unit. However, there’s no disputing that per coin upside potential with a smaller “fully diluted share” base is significantly higher. In MWC’s case, just eight million or so are outstanding today, and it will take roughly a century to reach the full 20 million coin cap.
Finally,we have the more telling scarcity metric, “stock to flow” – which again, dramatically favors MWC. By definition, crypto stock to flow is current coin supply divided by new coins mined per year. In other words, measuring how rapidly supply is increasing, irrespective of the lifetime cap.
Putting this metric into perspective, there are roughly 18 million Bitcoin outstanding –with supply currently being added at 657,000 per year. Thus, a very strong stock to flow ratio of 18,000,000/657,000 = 27.4 - that upon next year’s halving, will double to an extraordinarily strong 54.8.
In MimbleWimble, Grin has 26 million coins outstanding – that are expected to rise to 32 million by year-end (yes, in less than two months), compared to an annual mining rate of 32 million. Thus, a 2020 stock to flow ratio of 32/32 = 1.0.
Next,we have Beam – which has 45 million coins outstanding, that will reach 50 million by the end of 2019. It’s current annual mining rate is 25 million, so its 2020 stock to flow ratio is roughly 50/25 = 2.0.
Finally,there’s MWC – which launched this week with roughly eight million outstanding, and just 1.25 million expected to be mined in 2020. Thus, a 2020 stock to flow ratio of 8/1.25 = 6.4…more than 3x that of Beam,and 6x more than Grin.
No matter how you measure it, MWC is BY FAR the most attractive MimbleWimble investment vehicle. Currently, the team’s plan is to list on exchanges at or around the airdrop claim date of December 11th– after which, the increased liquidity they provide should enable its valuation to challenge those of Grin and Beam.
TheMWC airdrop registration ended July 19th, and MainNet launched on November 11th- with the airdrop claim process scheduled to commence December 11th. A total of 148,474 Bitcoin registered –roughly 1% of the entire BTC float - yielding an MWC/BTC ratio of roughly 40.41. For more information, please check out the MWC website, Discord room,Twitter feed, and Telegram Forum.
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