Decred Lose +60% Of Its Value In 10 Weeks

Discussion in 'Newsroom' started by Alexoz, Nov 3, 2016.

  1. 2017/12/15 - Decred v1.1.2 released! → Release Notes  → Downloads

Are you regular on the forum?

  1. Yes

    21 vote(s)
  2. No

    4 vote(s)
  1. jy-p

    jy-p Sr. Member

    Jan 2, 2016
    I'll try to make an effort to be more available via Slack, based on your comment. My latency there will likely be higher though.
  2. shoshin

    shoshin Member

    Dec 28, 2015
    Thank you for weighing in on the price issue @jy-p. There are many members of the community that watch every price tick and assume there is high correlation right now between the price and development/potential. Due to the fact that the market is still quite thin, price distortions are quite common both on the downside as well as the upside.

    For example, if an investor were inclined to buy a moderate amount of Decred today; say 100,000 DCR, on the exchange with the highest volume and exercised some discipline by not wanting to represent more than 10% of the trading volume on any given day, it would currently be a process that would probably take a week or more and push up the price a significant amount. If they were impatient/imprudent and placed a market order for 100K DCR the price would likely automatically triple (assuming sellers did not pull their offers or offer additional supply). Now if you were to see the price of Decred increase 300% in a day, many people would be inclined to think this was a positive or exciting development and could potentially lead to day traders and other uninformed individuals piling on and exacerbating the price rise. This type of rise would be equally as misleading with regards to the true fundamentals of the coin as the current price action is in my humble opinion.

    People need to realize that Decred is in its infancy and a tremendous foundation is still being laid from which we will likely see great things. I believe Decred has the best development team in the world of cryptos bar none. If you agree, or even feel that they are among the top 10, you should reflect on what that means for the potential of this technology, and eventually the price.

    Because we are still in our early days and the devs are so focused on their work, there has been very little done to promote Decred. Do not mistake this for being a bad thing. Decred is still young, supply is still rather constrained (see Say's law to understand why this may be an issue), and the coming developments seem to be the variety of technological innovations that will essentially sell themselves and garner a great deal of interest among followers of this space. Price increases will likely follow.

    The point of this exercise is merely to demonstrate that regardless of what proponents of the efficient market hypothesis may believe, Decred's status as a new crypto with very little exposure makes it a hidden gem that has likely not been properly valued by the market; price and price action are currently misleading. Investors would be wise to avoid judging this coin based on the limited market information we are presented. Please do keep in mind while I personally believe that Decred is the most exciting development in the cryptocurrency universe and has tremendous potential upside, remember to be prudent; as with any endeavor do not invest more than you are willing to lose. Nothing is guaranteed.

    If I may however impart one piece of knowledge that has served me well over the years and which was acquired through great struggle, it would be that patience and discipline are the keys to many things in life.
    jy-p, linas, MiloIce and 3 others like this.
  3. Ayush

    Ayush Full Member
    Advocate (Facebook)

    Jan 9, 2016
    Guys, I just noticed that there is a doge/dcr market -

    Its pretty obvious that people will invest/trade only if there is some vol being exchanged. The doge market here is pretty small And I think if anyone of us could increase the vol being traded, people would auto matically start buying decred, afterall people can trade in only those coins that others have to sell, so all we need in enough doge to dcr to the top in "vol traded" on bleutrade (pretty small amount).

    Is my speculation correct or something wrong with it?
  4. Tivra

    Tivra Member
    Advocate (BitcoinTalk)

    Dec 30, 2015
    The market seems to be responding well to the recent updates.
  5. Alexoz

    Alexoz Member

    Careful to Bitcoin...

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