Dear fellow Reddheads:
I just want to share my thoughts on the current market price of 2-3 satoshi on Cryptsy.com
In short: I believe 2 sat is the lowest price you’ll ever buy RDD at. Let me explain my reasoning below:
- If you are a seller, you should never sell a coin at 1 sat unless you are absolutely sure the coin is dead (e.g. a scam).
Putting up a sell order at 1 sat is no different from writing it off. If the coin has any promise, selling at 1 sat offers you minimum reward with maximum loss of opportunity.
- Rationally 2 sat is the lowest price you can buy RDD ever
It has been 10 weeks since the genesis block of Reddcoin was mined. It may have felt like a long time but in the real world when you try to build and achieve anything that’s meaningful, the time is calculated in years. Reddcoin has just started and this is just the beginning.
- Herding mentality
With human nature being what it is, the vast majority of people feel much safer to buy a coin that just went up 10x (e.g. gosh, have I missed some good news? I must not miss the boat!) than buying a coin that just went down 30%. This has many names: herding, trend-following, momentum-chasing, belief-in-Efficient-Market-Hypothesis etc. All these share one central assumption: I can make reasonable decisions based on price actions alone. The official name for this in finance is technical analysis.
Price does contain a lot of information. But occasionally one can and should also use fundamental analysis to evaluate the fair value. Market prices are never guaranteed to be fair at all time.
- Upcoming Milestones
We have several major pieces of work underway and will start to bear fruit throughout the next 2-8 weeks. It covers new technology, marketing and PR. We’ll keep everyone informed in due course.
Regards
laudney