We all know BAT from Brave's Opt-In Paid Ad program rewards (among other things). Aside from it being a native browser reward/utility token, does it have any value as an investment asset, and if so, how much?
BAT (Basic Attention Token) is an altcoin created as a utility token to be transmitted amongst users on Brave's Web 3.0 platform. In this platform, content consumers send and receive BAT to publishers based on viewing behaviors, and can choose to automatically send or manually tip a fixed amount of tokens per month or single occasion. So, as far as altcoins go, this one not only has a specific purpose but is also already functional.
One thing I like to do when determining price targets for crypto investments is to look at all-time highs of each token against BTC or ETH. This is because measuring against the USD is less reliable, as tokens predominantly trade in BTC or ETH pairings, and BTC and ETH themselves trade against the USD, even wildly sometimes, so calculating using the USD is wildly subjective and might lead to less accurate projections.
As such, after analyzing the BAT/BTC chart, I noticed it's currently extremely stretched to the downside, near an all-time low against BTC. This is likely attributed to Bitcoin's current market dominance as it recently exploded up in price, marking possibly the beginning of a bull market, a time in which altcoins tend to lag behind BTC and suffer against Bitcoin, or "bleed satoshis."
Optimistic BAT/BTC Target = $13.00
Looking at the BAT/BTC all-time high, we can see it's just under 0.0001, as interestingly marked during the 2019 highs. Now, I'll make two assumptions:
1) Bitcoin reaches $130,000 during the next bull run.
2) Brave's continued growth and adoption makes it a major player in international web browsers, catapulting BAT to a new ATH against BTC at 0.0001 BAT/BTC.
With these two assumptions (which may be conservative), we calculate $130,000 x 0.0001 BAT/BTC = $13.00 per BAT.
Conservative BAT/BTC Target = $4.40
Let's say Bitcoin doesn't quite reach $100,000 in the next bull run and altcoins don't have quite as parabolic of an altseason as they usually do:
$80,000 x 0.000055 BAT/BTC = $4.40.
Optimistic BAT/ETH Target = $30.00
Let's assume Bitcoin and Ethereum have powerful bull runs as most are expecting, putting Bitcoin into the six figures, which puts ETH to the low five figures. Subsequently, this sparks a similar altseason to January 2018.
$10,000 x 0.003 BAT/ETH = $30.00.
Conservative ETH Target = $7.50
Let's say Bitcoin and Ethereum have slightly underwhelming bull runs and Bitcoin 'only' goes to $50,000 - $60,000, resulting in ETH peaking around $5,000 or so. Altseason is similar dampened with not many 100x's, if any.
$5,000 x .0015 BAT/ETH = $7.50.
Total Price Target Average = $13.725
Conclusion
In this particular case, you can see that even by conservative estimates, Basic Attention Token (BAT) is fairly well suited for an exponential rise over the next few years, whenever that might be but probably during an altseason period of altcoin strength vs Bitcoin/Ethereum. By the most conservative estimate, BAT would see a 20x, or 2,000% gain. By the most optimistic estimate, BAT would see a 136x or 13,600% gain. By the average estimate, this would be a 62x or 6,200% gain.
As you can see, ratios are important as they gauge a rough historical strength and resistance level altcoins will have during altseasons or other periods of Bitcoin/Ethereum pairing weakness relative to alts. This is helpful in determining at what ratio one might be targeting for an altcoin, as opposed to using an unreliable and highly subjective US Dollar pairing, which could fluctuate wildly and give you a sub-optimal price target during a manic phase.
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