The Enormous Hidden Opportunity Within Cryptocurrency That You Might Be Missing
An Alternative Investment Option, within an Alternative Investment Class.
Introducing an asset within crypto that offers an investment option and store of value that transcends market fluctuations.
But first we must ascertain what makes something valuable? Why are diamonds worth more than lumps of granite?
Time for a quick economics lesson, and trust me, I’ll keep it short, interesting and relevant.
Price is discovered by the interaction between supply and demand of a specific good or service. This elegant and simple graph allows us to see the economic equilibrium and how the price is determined. On the whole, it’s not overly complex.
This equilibrium explains why we pay what we pay for a majority of the goods and services that we purchase.
Certain resources such as gold, diamonds, rare baseball cards, vintage cars and famously Bitcoin have a fixed supply. There’s only a certain amount of them in existence. This is shown on the graph by having a supply curve that stands up straight. Regardless of what happens in the world, the supply is what it is. The lower the supply, the further to the left the supply line sits. As supply is reduced we slide up the demand curve and higher price is discovered. Scarcity, and limited supply is the reason why we pay more for lumps of diamond than lumps of granite.
In a free market this economic method of price discovery holds true regardless of exogenous factors. Should there be political turmoil, a recession, or even a post apocalyptic event; supply and demand will always continue to determine price in a free market environment.
Let’s zero in on everyone's favorite precious metal; gold. Humans have had an affinity towards gold since records have began. Whilst the captivating manner in which it reflects light, the colour, and feel is attractive, it’s not the reason why people have foug...