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RE: Excess Supply : Killer of Steem , EOS, Bitshares and other top crypto currencies ?
Unlike with Lamborghinis, the number of units of a cryptocurrency does not matter because:
a) a token doesn't cost anything to create
b) tokens are infinitely divisible
If Steem had started with half as many tokens as it did, each token would be worth twice as much, but the market cap would be the same.
So, no, the supply of tokens is not holding it back. The only thing that could ever boost the value of cryptocurrencies is increased demand, because supply is effectively infinite.
Good point however see bitcoin and other coins with limited supply and check the price of their coins. All are in coinmarket cap for you to analyse and see those with huge circulation supply and check their prices..it actually do affect price when there is way too much supply of anything. However your point is vaild, thanks for your comment
Yeah, I forgot to factor inflation, which is "excess supply". That is indeed a price killer. That's why I generally prefer crypto with fixed supply.
Good point hence the high costs of bitcoin , dash, etherium , neo , Litecoin etc before writing this article i took out time and researched coinmarket cap and note that even better coins Like Bitshares, Ripple , IOTA, NEM have low price due to excessive supply...supply is indeed a bg factor
What makes you think the price is too low? The price is the price. Nobody knows what it's supposed to be, isn't it?
Good point however I even like the low price now in order to be able to buy more ...price will always rise hopefuly next year
I agree. I'm in it to win it.
Good point bud, thank goodnes it is stilll cheap....let gradually get steem before it goes crazy up!!!!