Ravencoin, a fork of Bitcoin, is a relatively young token; it’s only since January 3, 2018 that it’s been hovering among the crypto currencies. But in the last month or so, since being listed on Binance, the coin has attracted attention thanks to a price skyrocketing and a an intriguing use case. Even the name is interesting – it is the fictitious one, borrowed from the fictional world of Game of Thrones.

Ravencoin (RVN) has all the properties of a good crypto project: no ICO, no founders holding majority of coins, it is a PoW project where anyone can mine it with their CPU thanks to the ASIC resistant design of the mining algorithm, it is backed by couple of reputable names of the crypto space like Bruce Fenton and Tron Black, it pays homage to Bitcoin and is very respectful of the work of the core developers from which it was forked which in turn secures them the help from couple of those Bitcoin developers etc.

All of the aforesaid throws RVN holders in the bull delirium and they start dreaming about some unrealistic price levels, like reaching the $1 mark. The inflation of RVN is massive, 7.2 million new coins enter the circulation every day diluting the value of the existing supply. Its current available supply is 2.2 billion, so there is a lot of coins to enter the circulation before we reach 21 billion total supply.

Supply/Demand is a simple economic factor that affects the price of many things. If a cryptocurrency has a high token supply with little demand from traders and users, then the cryptocurrency’s value will drop. Conversely, if the supply of a particular cryptocurrency is limited and the demand is high, then the value of the coin will increase. Supply of RVN coins is not huge right now but keeps growing at a big rate, as already mentioned. This is a negative, downward pressure on the RVN price.

This dynamic is tied to another basic economic principle, scarcity. Scarcity refers the gap between limited – that is, scarce – resources and theoretically limitless wants. With 21 billion of tokens, RVN is anything but scarce, at least for the current level of its adoption.

The upward price pressure will be exerted with the adoption as every new asset creation event burns 500 RVN, mitigating the inflation and lowering the coin supply. The more users on the RVN platform, the better for its price.

Another positive price factor will be also adoption-related. If a company decides to put their shares on the Raven blockchain and pay dividends to token holders they must pay them RVN. This means that once a quarter / year (however it is decided) they will need to acquire enough RVN to pay out in the form of dividends.

See the review of the biggest crypto exchange – Coinbase.

Just like Bitcoin, Ravencoin halving – at block 2,100,000 (we are currently at 452,700) the halving will take place and the reward per block will drop from 5,000 to 2,500 Raven. This will continue with each subsequent 2,100,000 blocks until the reward amount can no longer be halved. This will also tone down the inflation rate and have a positive effect on the supply/demand dynamics. But, by the time the halving occurs, there is going to be 8 or 9 billion more RVN created – that’s a 300% increase in token supply in 3 years’ time.

Ultimately, Bitcoin moves this market. No other coin. Bitcoin halving is in 2020. Bitcoin will probably move up after this significant supply/demand relation adjustmen and the entire market will follow suit. At least those that will be still live at that time. If RVN ever reaches the $1, it could be at that time.

The post Ravencoin long-term price forecast: RVN is great but reaching $1 in the near future is mission impossible appeared first on CaptainAltcoin.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

186 +