Hope, the granddaughter of Satoshi Yakamoto, Comes to us not only to extend beliefes as to where the market will go, but also to show us that there is so much left to learn and understand about the genius behind this creation of cryptographic, secured, digital elements… about the implications of the mainstream adoption of a decentralized and accessible secure chain of account.
Culture and Consensus
A culture derives the essence of how it will participate with the wide and vast beast, know as the "market", based on the options for systems of exchange that exist within the agreements of that culture. The truth is that people do not value everything purely in terms of “dollars”, but that these fiat and currency based valuations have a deeper psychological Essence behind them that drives the value of that dollar in return.
I want you to think for a moment how an organization involved in international finance would work to distill from those human psychological and emotional systems a basis for a machine type intelligence in terms of the actions needed in the orchestration of allocating financial assets with the intent of portfolio growth. Eventually this system takes on a mind of It's own and reinforces back onto those humans a type of value loop that perpetuates the growth.
Cant we consider that a type of simulation or reduction of the essence within human life?
Driven by developments within computers and information technology this entire system becomes one giant engineering problem that has at the basis of these "financial resource allocations" the applications of an intent that will affect the world.
Pure and simple, yet not so direct.
The layers of systems that the resources must go through to be properly transferred (exchanged and thus participating in action) create a situation that can be varied depending on the type of technology you use. This means that in essence financial systems are aiming at goals that are changing while also the environment around them changes simultaneously.
Whether this is good or bad is not important this is simply the way it works. The allocation of capital into various realms of productivity and speculation has always been at the root of mass human adoption for innovations. Powerful individuals all through history have always been working together with each other to create a further evolving system of human interaction that the mainstream will accept without revolt.
Yet this whole paradigm is in for quite the ShakeOut as cryptocurrencies start to permeate the minds of humans. The capacity for an increasing quantification of all occurrences creates a global account of everything that will ever happen- in the extreme at least… More realistically, the ability for people to express an "ascription of value" towards their true economic wants is about to be fundamentally changed over the next decades.
Initial Price Offering
However the point here is not to go on about all of the different philosophical or technological aspects of cryptocurrency and how they might play out but to look at something relevant to Trading and participating in the crypto market for gains.
With the deep red, and everyone feeling down about active trading, now's a good time to reflect more on market fundamentals and the potentials within the big picture. No need to always shill your coin when the revolution will proceed regardless.
Anyone who has spent more than an hour looking at the charts of various cryptocurrency pairings knows full well that Bitcoin has always had a great magnitude of weight in influencing the pricing of all other coins. However few have taken a step back to look more realistically at pricing trends outside of the fluctuations and their interest in returns.
As an example we can look at ICOs. If you look at the statistics this year is our greatest year yet for icos. Yet apparently there are claims, and observations, that many of these coins are failing at rapid pace. Regardless of the metric which you use to consider a coin failing or not there are still numbers to look at.
Countless ICOs come into the market at $1 per token and crash to $0.10 or less once they enter the exchange markets. Very few ICOs actually rise from the initial price and those that do are in a special category of “potentially successful”, we might say.
However, what can we say about all of these coins that decrease to these small Satoshi amounts?
Might icos be overvaluing themselves and limiting their adoption and exaggerating their realistic capacity by valuing themselves often at $1/token? Perhaps we are seeing an unwillingness right now for the market of Ico creation to begin to look realistically at smaller initial token costs. Why is not one $0.01 relevant, why is not $0.10 relevant, why even worry about fixing it to the US dollar why not fix it to a Satoshi amount?
Regardless, we know that if any new coin wishes to plan successfully they must consider a variety of scenarios of how their price might play out. To only hope and plan for the most optimal may leave a coin’s team devastated.
No doubt coin developers are worried they will go into the, "less than 10 Satoshis" realm...
It is very curious to see how the introduction price of many new coins is destroyed once a coin enters the exchange market. Although It is common economics that Introduction of a coin on an exchange often causes it to lose some value rather quickly I think it is safe to say that many of the new coins that are being launched might benefit more from devising an initial price that was more in line with their community’s capacity to handle fluctuations rather than a willingness to put up $$$.
Always when looking into an Ico you should look at the ability for the initial investors to handle fluctuations and capital changes because these initial investors can set off a cascading chain of events depending on how they treat their holdings. Many initial investors might want to exit as soon as possible which will exasperate losses, and many will hold even after they lose 80% or more.
We can say that 90% of ICOs (if not more) will fall from the initial price with their introduction. Investing in ICOs is also risky like trading on the market, and unless you're making complex analysis you might be having a lot of trouble winning with ICOs and making profits. You have to not lie to yourself about where those coins actually are in the market. You have to understand that even if a coin falls from it's initial price it still has action that can happen. But that is not ICO investing. Maybe you need some ninjas to help you pick ICOs and get those lucrative 1000% gains!
Rock go down, grug no sell have strong hand.
As to design ideas for Devs to consider, and for ICO investors to consider:
By setting a lower initial entry level your community may experience less impact from price fluctuations. This is due partly in effect to having a smaller volume to be pulled by the larger crypto market fluctuations and also from increasing the exposure of entry to a larger range of people globally and not relying on too many whales in the initial investment pool. It's all about the distribution. To discover the probability is the art.
Everyone has to accept the fact that Bitcoin is the arbitrator of the market’s direction.
This arbitration is a process that takes place during Fiat transferring to the Crypto Market. But the only reason that the Fiat funnel is important, and this is critical, is it because that's the source of value holding that myriads of people of the Earth use for the accounting of their labor and service.
So the truth is that most people who do not specifically have large amounts of capital set aside for investing are seeking to gain some form of return in either pricing, or “service access”, or some abstract advantage, for the investment of their time. One of the amazing things about the Crypto economy is that it allows access for billions of people all around the earth to a multilateral commodity and security exchange capability.
People talk about voting with their dollars? Well you're looking at that idea on steroids... but little Billy is just starting to lift and he's already injecting. By the time he grows up he's going to be looking like the Beast.
Remember crypto is political, fundamentally. And even as finance begins the mainstream adoption of cryptocurrencies we should not settle ourselves into the idea that financial systems are already too entrenched with the current politics of the past. We need to not deny the new financial systems within the crypto economy the willingness to be influenced by a different set of political forces. Especially if you consider the international nature of trade and exchange and the power of smaller communities to secure their accounts of process and exchange.
See you around ninjas!