How is the "Future Price" of a cryptocurrency estimated?

The Future Price estimation relies on three key components:

• Projected Total Market Cap,
• Future Supply of the cryptocurrency
• and Future Dominance of the cryptocurrency.

Let's break it down with an example using Bitcoin. Suppose we have these projections:

• Total Market Cap: $10 trillion
• Bitcoin's Future Dominance: 40%
• Bitcoin's Future Supply: 20 million

We can then calculate the Future Price as follows:

• Future Price = Total Market Cap × Future Dominance ÷ Future Supply
• = $10 trillion × 40% ÷ 20 million
• = $200,000 per Bitcoin

It's worth noting that you can adjust these variables to explore different scenarios. For any cryptocurrency, you have the flexibility to modify the Total Market Cap, the Future Dominance, and the Future Supply.

This adaptability allows you to consider various potential outcomes based on different market conditions and cryptocurrency performance. Feel free to experiment with the numbers and see how they affect the estimated Future Price.

What is "Future Price Profit"?

Future Price Profit represents the potential return on investment, calculated as the percentage difference between the Future Price and the Current Price of a cryptocurrency. Here's how it works:

• It compares the estimated Future Price to the Current Price.
• The difference is expressed as a percentage.
• This percentage indicates the potential profit (or loss) if you were to buy at the current price and sell at the future price.

For example: If the Future Price Profit is 50%, it means the Future Price is 1.5 times the Current Price. A Future Price Profit of 100% indicates that the Future Price is double the Current Price.

Keep in mind that this metric can be useful for comparing different investment opportunities or assessing the potential growth of a cryptocurrency. However, remember that these are projections and actual results may vary.

What is "Future Price Proximity"?

Future Price Proximity is a metric that indicates how close the Current Price of a cryptocurrency is to its estimated Future Price, expressed as a percentage. Here's what you need to know:

• It compares the Current Price to the projected Future Price.
• The result is presented as a percentage.
• A lower percentage suggests the Current Price has more potential growth to reach the Future Price.
• A higher percentage indicates the Current Price is closer to the projected Future Price.

For example: If the Future Price Proximity is 25%, it means the Current Price is a quarter of the way to the Future Price. A Future Price Proximity of 75% would indicate the Current Price has already covered three-quarters of the projected growth.

This metric can be useful for:

• Assessing potential growth opportunities.
• Comparing different cryptocurrencies' current positions relative to their projected future values.
• Gauging how much of the projected growth has already occurred.

Remember that this is based on projections and estimates. Actual price movements may differ from these calculations.

How is "Inflation" calculated?

Inflation is calculated through a three-step process:

1. Automated internet searches gather data from various sources.
2. A Large Language Model (LLM) selects the most relevant search result.
3. The LLM then interprets this chosen data to extract inflation information.

The resulting inflation estimates, when available, are used to determine the default Future Supply value for cryptocurrencies.

Disclaimer: This method is experimental and may not always be accurate. The results should be considered estimates only. For critical decisions, please consult official economic indicators and reports.

For technical details, please read this article.

How is the default value of "Future Supply" estimated?

Future Supply is estimated using one of two methods:

1. If Inflation Rate is known: Future Supply = Current Supply × (1 + Inflation Rate)
2. If Inflation Rate is unknown: Future Supply = Circulating Supply + (Total Supply - Circulating Supply) ÷ 2

The first method is used when inflation data is available, projecting supply growth over one year. The second method estimates a midpoint between circulating and total supply when inflation is unknown.

Note: You can manually adjust the Future Supply value for each asset, overriding these default calculations.