RE: Does the economics of supply and demand work for Tokens on Hive?

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RE: Does the economics of supply and demand work for Tokens on Hive?

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rpren in Silver Bloggers • 2 years ago

Yes, supply and demand work. Even for the tokens on Hive.
Tokenomics explain the supply side.
The real issue is the demand side. And that boils down to use cases. What can I use my tokens, CTP, ListNerds, LEO etc, for? What can others use my tokens for, ie why would they buy them?
And that is a difficult question for many tokens to answer. And that's why they fall in price. There are more sellers (people who do not want the tokens for various reasons) than buyers (people who have a good reason to buy the token).

2 years ago in Silver Bloggers by rpren

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bradleyarrow 2 years ago

But my point was when there are enough buyers but people don't see it and they are selling cheaper than need to. Example: a brick and motor store has a line up outside for people wanting to by a widget. So the owner decides to put it on sale. Makes no sense

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rpren 2 years ago

It rarely does! Unless he is looking to use the discounted widget to upsell a higher value product.
The same with stocks. Most people (institutional investors and retail investors alike!) are more likely to buy a stock that is going up than one that is going down. Irrespective of the economic performance of the underlying company.
In the case of Hive tokens I suspect many sellers just want to get their "cash" rather than spending some time doing their own research. Even if this is to their detriment.

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bradleyarrow 2 years ago

Make sense but is sad indeed.

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