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Trying to look at ampleforth price line since inception in 2021. Price significantly dropped to an all time low last june and recovered a bit since then.
So let me ask you a question ( a real one since i am interested in understading the concept )
If Ampl is an algorythmic stablecoin, that aims at targeting 2019 USD value, knowing the USD value decreased since 2019, ampl price being traded on exchanges follows the simple rules of supply and demand because not backed or pegged to usd. Since ampl prices are going down, from my understanding, ampl algorythm corrects that decorrelated value from 2019 usd value by increasing the amount of ampl you got in your wallet. Is it correct?
That s where i am unsure if my undeestanding is correct because i have a hard time figuring my wallet not having the same amount of ampl everytime i would check without making any transaction… so i mist be missing something
Thank you.
Current Value of 2019 USD = approx 1.17 USD - U can see this in the AMPL Dashboard in the website.
Now if AMPLE is trading at less than 5% of the 1.17 USD ( Less than ~ 1.11 ) then that means the total supply of ample has to be decreased globally to so that the price comes up to reach 1.17
So rebasing happens and the total supply goes down. This is called negative rebasing
As the total global supply of AMPL goes down the total supply of AMPL in ur wallet also goes down.
Now this pushes the demand higher and the price might go higher the next day. If the demand goes higher and higher there may be people buying ample for 1.3 USD or 1.5 USD if demand keep staying there. Now every day the global supply is increase based on the increasing demand to bring down the price to 1.17 USD which is the target. Sometimes the price keep staying above 1.17 for a long while indicating higher demand and so the supply globally and in ur wallet keeps on growing till the total supply increase to a level that the price comes down to tend to 1.17 USD
So this effectively negates the cantillon effect when Fiat currency issue happens. Similar to Fiat currency AMPL also keeps issuing more and more supply. but the increased supply comes into the account distributed across all the previous holders.
Price significantly dropped to an all time low last june and recovered a bit since then.
Price in June 2023 was around $15000. Bitcoin all time low was below $0.000001. Sigh.
I am talking ampleforth @harrr
Ouch, thanks for pointing that out :-D
Bust finished reading that long and really highly interesting article, well done @cryptofolyo
I would mention an inexactitude when you mentionned vanguard filing for btc etf.
I am glad i finally found someone that , like me, think precious meral are worth investing in even thiugh prices are highly manipulated by wall street.
Regarding ampleforth… never heard of it so far. Will definitly dig the topic, contenders, possible copycatsbut it sounds like a possible good portfolio diversification idea to me…
Thank you so much for sharing that article my friend, highly recommended!
Portfolio diversification with Silver and Gold is very important i think. Then if in some point in future bitcoin private keys gets compromised because of some previously unknown tech like quantum computing or something similar.
What happens is the value of gold and silver likely to rise tremendously.
So if u have a portfolio of 50% in metals and 50% in cryptos then if crypto goes to zero then metals are likely to grow by 3 or 4 times and ur portfolio still grows. So u dont have to be worried about a main chain hack on bitcoin or 51% attack or any sort of that kind of stuff.
Thank you so much
First time someone is appreciating my ideas here on stacker.news
Everything including bitcoin can be manipulated. Not limited to Gold and TradFi
Manipulation in bitcoin may be limited becuase the blockchain is public and transparent. But as ETF comes , power to dictate the price of Bitcoin also comes with that. Look at the way the GBTC is filing for covered calls.
But i think bitcoin wont be that easy. Covered calls on a volatile asset like bitcoin is height of stupidity i think Even for GBTC. May be they would start with covered calls for 50000 or 100000 bitcoins.
mining is just around 900 bitcoin per day
ETF buying as of now is 10000 plus per day
eventually i think the price of bitcoin as it shoots higher to the order of millions ETFs wouldnt be able to afford to buy all the mined bitcoins even per day reducing the volumes to few hundred BTC aquired each day spending billions each day
its a slow transition from the 1000 trillion dollar based economy into 21 million bitcoins + Gold + Silver + AMPL becoming the liquidity to deal with the 1000 trillion dollar tokenised securities
https://bit.ly/dollarhyperinflation - please read