Cryptocurrencies have redefined investment classes. There is a strong financial argument that these digital coins are unlike cash, stocks, bonds, hard assets or real estate and have established themselves as a distinct asset class. They have added the option for another portfolio element to be added to a diversified investment strategy.
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As a distinct asset class, cryptocurrencies have a unique blend of value drivers and value multiplication opportunities. Using the old valuation models and techniques will give a wrong idea about the true value of a coin. This has happened to Dentacoin, which recently completed a successful ICO. Here’s four ways in which the old school valuation approach does not work for Dentacoin.
Old School Thought #1: The Plan is Too Big
Dentacoin is designed to improve global dental health. That might sound as a laughable goal to some people who dismiss it as impossible. Others think it is a good goal but just too big to be practical. This way of thinking ignores how the Internet improved both global communication and global commerce, to name just two examples. It also completely disregards how cryptocurrencies already operate across national boundaries. Or how Dentacoin is already implemented as means of payment at pioneering partner clinics in Europe and South Asia.
Old School Thought #2: Too Many Coins
Dentacoin has a total supply of 8 trillion pre-mined coins. Doubters think this supply will overwhelm demand and ruin the coin. This ignores the fact that all the coins are not in circulation and won’t be for years. The release of coins is intended to match the growing use and demand of the Dentacoin, and there is a gradual distribution planned until 2042. The coins are locked in annual TimeLock smart contracts, so there is really no way all 8 trillion coins will appear on the market anytime soon. And no one, literally no one, can manipulate this. Besides, do you know that the actual supply of Bitcoin units is over 200 times more than the total Dentacoin supply? This is because Dentacoin has no decimals, meaning it cannot be divided into more units, while each Bitcoin contains 8 decimal places, which is 100 000 000 smaller units (Satoshi) in each Bitcoin, making the total supply of Bitcoin units much larger than the total supply of Dentacoin.
Old School Thought #3: Why not just use Bitcoin instead?
As a digital currency, used as fuel for an entire specific industry, Dentacoin provides additional benefits for all market participants. All tools developed (or planned) aim at achieving the mission of Dentacoin: to improve dental care quality worldwide and make it affordable by allowing patients to have a strong impact in the process. How? Dentacoin develops a new notion of a “mining” concept called value-generating distribution. All tools reward users for their contribution to the mission with Dentacoin, which could then be used for paying for dental services, dental care products, assurance fees. Simultaneously, dentists will be provided with an integral platform with all the necessary features to make their workflow efficient and create loyal patient communities around their practices (the most important asset for every service industry). Various opportunities for suppliers and manufacturers are present as well (e.g. through a Smart Contract they can implement an automatized pay-per-use approach for expensive dental equipment and thus distribute their products to more dental practices).
Paying with Bitcoin doesn’t provide you with the opportunity to make such a global impact within an entire industry. Moreover, you cannot easily buy or mine Bitcoin, due to its high price and the high costs associated with mining. Meaning high distribution costs + high market entry barriers. Whereas the market entry barriers for Dentacoin are extremely low, thus opening the market for Blockchain solutions to a wider audience.
Old School Thought #4: Just Too New
While it’s true that Dentacoin has just completed its ICO, key parts of the Dentacoin strategy are already in place. The Trusted Review Platform already has over 4,300 registered users and more than 500 dental practices. The Android Beta version of the mobile app Dentacare is also released and has over 700 registered users for the short time since it has been launched. This shows the strong support from the community and also the interest in Dentacoin products.
Using old school ideas to evaluate something new is never a good idea. Blockchain is a truly disruptive technology that does not fit the models that have been used to evaluate other business ideas. This new type of business model is what brings solutions to specific problems in an entire industry, which is really relevant to anyone. Because it is new, and nothing similar has been done before, the world reacts defensively, giving all the reasons why Dentacoin will not work. But Dentacoin shows a step-by-step guide how it is done.