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Ravencoin, a fork of Bitcoin, is a relatively young token; it is only since January 3, 2018 that it has been poised between the crypto currencies. But in the last month or so, since it is listed on Binance, the currency has attracted attention thanks to a high price and an intriguing use case. Even the name is interesting – it's fictitious, borrowed from the fictional world of Game of Thrones.
Ravencoin (RVN) has all the properties of a good cryptography project: no ICO, no founder holds the majority of coins, is a PoW project where anyone can undermine it with its own CPU thanks to the durable ASIC design of the date algorithm mining, is supported by a couple of reliable names of cryptographic space like Bruce Fenton and Tron Black, pays tribute to Bitcoin and is very respectful of the work of the main developers from which it was bifurcated, which in turn protects them from the help of a couple of those Bitcoin developers etc.
Factors of price depression
All the aforementioned RVN holders in the delirium of bulls begin to dream some unrealistic price levels, how to reach the score of $ 1. The inflation of RVN is massive, 7.2 million new coins come into circulation every day diluting the value of the existing supply. Its current availability is 2.2 billion, so there are a lot of coins to get into circulation before we reach a total of € 21 billion.
Demand / supply is a simple economic factor that affects the price of many things. If a cryptocurrency has a large number of tokens with little demand from merchants and users, the value of the cryptocurrency will decrease. Conversely, if the offer of a particular cryptocurrency is limited and the demand is high, the value of the currency will increase. The offer of RVN coins is not huge at the moment, but continues to grow at a high rate, as already mentioned. This is a negative downward pressure on the RVN price.
This dynamic is linked to another basic economic principle, scarcity. Scarcity indicates the gap between limited resources, that is scarce, and theoretically unlimited desires. With 21 billion tokens, RVN is all but poor, at least for the current level of its adoption.
Price catalysts
Price upward pressure will be exerted as each new activity creation event burns 500 RVN, mitigating inflation and reducing the money supply. The greater the number of users on the RVN platform, the better is its price.
Another positive price factor will also be related to adoption. If a company decides to put its shares on the Raven blockchain and pay dividends to the token holders, it must pay them RVN. This means that once a quarter / year (however decided) will have to acquire enough RVN to pay in the form of dividends.
See the review of the largest cryptographic exchange – Coinbase.
Just like Bitcoin, Ravencoin halving – to the 2.100.000 block (we are currently at 452.700) the halving will take place and the block premium will fall from 5,000 to 2,500 Ravens. This will continue with every subsequent 2,100,000 blocks until the amount of the prize can no longer be halved. This will also reduce the rate of inflation and have a positive effect on the dynamic demand / supply. But, when the halving occurs, 8 or 9 billion more RVNs will be created – this is a 300% increase in the offer of tokens in 3 years.
It's all about Bitcoin
Ultimately, Bitcoin shifts this market. No other coin Bitcoin halving is expected by 2020. Bitcoin will probably move after this significant supply / demand ratio and the whole market will follow. At least those who will still be alive at that moment. If RVN ever reaches $ 1, it could be at that time.
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The writers and authors of CapitanAltcoin may or may not have a personal interest in any of the projects and activities mentioned. None of the contents on CaptainAltcoin is an investment advice, nor does it replace the advice of a certified financial planner.
The opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com
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