Supply and demand: WE ARE THE KINGS OF THE MARKET.

Today the topic I want to deal with is the market. This article was inspired by some of the recent discussions held in the various social groups dedicated to the Bitmonds world (if you are interested in joining these groups click here).

Unfortunately, many still want to rely on the damned recommended value, fascinated by a dream of become rich fast, but in doing so, they forget the true essence of the market, which as I will never be tired of repeating, has only one KING: the law of supply and demand.

The recommended value as I have already repeated in the past is calculated through a mathematical formula: and here we have already the first big problem: which good dealt on the various markets has a price that is determined exactly by a mathematical formula? NOBODY.
  
This was simply the first point, but starting from a wrong premise causes all the consequences to be inevitably wrong, and in this article I would like to discuss some of these consequences and show you how they all inevitably lead to problems.


A possible objection could be the following: 'this value is only recommended, it must not correspond to the true market value'. Very well but there are two big problems:

1) Many people still in the negotiations rely on this value to make their assessments, so it is often still confused as the true market value.

2) Even for those who understand it, as only a recommended value, they make two huge errors: the calculation algorithm is terrible and does not consider the rarity of a Bitmonds at all, which is perhaps the most important characteristic which a collector is looking for.

Let's start by discussing the last point: the calculation algorithm is absolutely unsuitable for giving any possible estimate. The growth is absolutely too rapid, in fact the so-called Bitmonds with low ID have had frightening growths, some have even touched a + 10000% in just one year. Guys let's be serious, what are we talking about? An estimate that grows so quickly I would only call it in one way: value not recommended. The dream of getting rich in a short time is certainly beautiful, but let's leave it as a dream, the reality is different. So even those who consider it just a piece of advice they should consider it 'wrong', as it will be difficult to take it into account in a negotiation for various reasons! Above all it doesn't take into account the RARITY and the UNIQUENESS of a bitmonds.

Let's discuss the first point: guys never confuse it with the true market value. The main reason that should be clear to everyone is the following: in any market in the world, products can see their price increase OR DECREASE. In the algorithm this possibility is not even contemplated so considering it as the true market value, only for this reason it is totally absurd and senseless. Dreaming is beautiful, everyone likes it, but a short path to beceome rich does not exist. In a market, the thousand interactions between buyers and sellers are simply summarized in the law of supply and demand: one product has many requests, the price goes up, another has no requests, in order to survive, the sellers will lower the price. This is the market. it goes up and down, it doesn't have the only direction to go up above all at a frightening speed.

And now an explanation that regards both the previous points. Suppose we still fall into one of the two categories listed above, so let's take the value calculated by the algorithm as a recommended value or as the market value. Such frightening growth means that the offer will go up very quickly moving absolutely independently of the demand, which in every market does not absolutely happen, as the price of a good is a sort of balance between supply and demand. This independent movement of the offer only upwards could have only one effect: destroy the market, in fact at a certain moment no buyer would be willing to pay certain prices to have a Bitmonds (this is already starting to be noticed now with the so-called Low IDs that are often unsaleable just because some people want to stick to the recommended value). And here is the next objection: well if as you said when there is no demand, the prices will go down, just lower the price until you find a balance with the demand. True, but with this sentence you are telling me that taking into account the recommended value is absolutely useless.

Finally, another fundamental point is being overlooked. How will the sellers feel about seeing their bitmonds sold at a much lower value than recommended? In my opinion certainly sad and with less trust toward the project!!!

Still I would like that everybody will try to answer this question.

After this article I really hope that it is clear that in addition to being useless, this recommended value can only have the effect of destroying the market, because it completely distorts the balance created by the only king of the market: supply and demand!

And now all together we say: NOT RECOMMENDED VALUE!!
 
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