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RE: Was that a STEEM Crash or an SBD Shortage?!
Quality write up here, probably you can do a follow up post analyzing the dynamics SBD vs Steem and how market sentiments affect the pricing
Quality write up here, probably you can do a follow up post analyzing the dynamics SBD vs Steem and how market sentiments affect the pricing
Thanks for the kind words Daudz. Most pricing tends to be rather arbitrary and based on people's own framework and ideas of what's "valuable". Things that I think should cost a fortune, others toss out like yesterday's trash. And items that should sell for almost nothing, are often sold for small fortunes (think... "coveted" brand-name products).
If people see prices going up or staying around a certain level for long enough, even if it makes no sense whatsoever, it becomes a "self-fulfilling prophesy" as people start accepting the illusion for reality and a recursive "feedback loop" unfolds, until the inevitable "price shock" comes along and forces everyone back to reality...
Link: Understanding George Soros' Theory of Reflexivity in Markets