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Discussion in 'Economy' started by intertan, Feb 1, 2016.
What forces can cause dash to go up or down in value?
Not to be a dick, but market forces. Demand and supply
Though to be fair, Bitcoin's price does have a direct effect on Dash as Dash's main pairing in exchanges is with BTC and is also based of Bitcoin's core code. However, there are times where a huge rally in Bitcoin makes people pull money out of Dash to convert to Bitcoin causing the price of Dash to plummet.
The value of anything is simply a reflection of what people believe it is worth compared to everything else. This value might be based on utility, use as a store of value, scarcity, potential to be more valuable in the future, government endorsement, etc., or any combination of these.
It is also based on one's current situation. A gallon of water is valued much less than an ounce of gold, but if I'm dying of thirst in a desert, I'd gladly trade the gold for the water.
In general, I would say the value of Dash today is based primarily on believing it will have a valuable usage in the future, as well as people simply trading it as an investment.
The value IMO is the point where the miners are able to sell there rewards to recoup their running costs with a bit of profit.
If the miner is unable to sell at a price which covers their running and funding upgrades, their throwing money away by selling it cheaply so they hold stash until the market corrects itself to the point where they cash out.
Then mix this up with trading and we have the spikes and dives but the base value holds true.
IMHO, DASH (or Bitcoin) has no intrinsic value, its price is a pure speculation and subject to market forces.
Technically speaking, DASH is decentralized. In real life, there is less than 20 individuals who own 50% of the supply (there was a recent discussion on BCT). This means, the voting power is centralized in the hands of a few individuals who can 1) rig any voting process as well as 2) start a pump&dump scheme any time. IMHO, there are major drivers of the DASH price.
IMO value comes from the utility (or the perspective of future utility) of the cryptocurrency. (And, BTW, exchange price comes from market, speculation, etc)
To be clear, I see a difference between "price" and "value"...
No matter what anyone says, it's the market. Plain and simple.
Take a Picasso to the middle of the African desert to a nomad tribe and try to sell it. They'll probably offer you a portion of their dinner in exchange for the wood in the frame to make a fire with it.
Yes, and even in your examples, there is always the "value" (cultural value, for instance) and the price (market price) of the pieces. I understand that OP (all all other posters) meant "price" in this topic (not value).
I give a high value to DASH, because I see it's importance and future utility, but the value I give to it is hardly attached to its BTC or USD prices. Another person (a monero lover) would probably see no value in DASH, but, still he will probably admit there's a price to it, and will agree that this price will be established by the market.
As an example of this kind of discussion, there was a situation in which I was talking to a friend about gold. He said that gold is an illusion, because gold has got no "intrinsic value". I could not agree with his assertion, because, as long as gold has got important utilities (store of value, divisibility, fungibility, scarcity, etc) I could be certain that gold has got value (and this value is not necessarily dependent on its market price)... no matter if gold is overpriced or not, it still has value (maybe a DASH user will attach less value to gold, because DASH is more useful, but still, that value does not really depend on the market).
Anyway, what I mean is: value is more or less personal, and price is what the market imposes
raganius, I like your 1) interpretation "value vs price"; 2) example of gold in this context. As a long-term investor in precious metals, I have been following the herd sentiment towards the ultimate form of money which is gold and silver. Many investors asked the question, why gold (and silver) is priced just to cover the mining cost, although the value is much higher given the current corrupted fiat system based on USD is just an illusion, doomed to fail under the burden of unsustainable debt...
One, who would not be panic selling if the DASH price would lose 50%, definitely sees value in DASH.
lots of knowlage
Do any of you guys know whats happening to the dash price right now? It has fallen quite significantly in the past few days (more than 10%). I tried to find some news about the possible cause bout found nothing. Any ideas?
it is a general crypto thing
BTC goes up all Altcoin come down
Recently, when I said the price was falling (and explained why), I was met with denial. I am not at all surprised the price is tanking, it's been drifting downwards the past two months (see coinmarketcap).
My explanation is simple; the Legal proposals and the work with Coinfirm. It turns out, dash's "governance" system is better described as a grants system, because it doesn't stop the core team doing stuff that nobody voted for... they'll just do exactly what they please regardless.
Members of the core team conspired with Coinfirm and equally, at the same time, refuse to strengthen dash's privacy. They don't want to implement, for example, Shadowcash technology; they'll argue that PrivateSend is better when there is hard evidence to show it isn't. Companies like Coinfirm are increasingly eroding privacy on the block chain and they are having two-way relationships with companies like ShapeShift, Vodafone and so on (these are verifiable facts). Additionally, the core team have done nothing to help protect MNOs... end users get the privacy but MNOs are exposed to the risks / liabilities.
People can see these imbalance and realising they have little to lose by going back to bitcoin.
sorry but - that is total nonsense !
proposals (the core wanted/needed) were voted down before and will be again !
this whole conspiracy theory you are riding there does not make sense at all.
the last 2 month in dash and crypto there was a lot going on , BTC above 630, 'z' coins/cash launching this month all over , there were a ton of ICO's going on .....
this is just the markets and has nothing to do with Dash direct
(this is obviously my personal opinion - as much as your personal conspiracy theory)
the charts really depend on your zoom !
we rise from 4$ - 13% over the last 8-10 month ! check the charts and u see were all 'on track'
....and there you are, exactly the denial I talk about. I say the past couple of months and you talk about the last 8 - 10 months because it fits your argument better. @KryptoTypek asked "Do any of you guys know whats happening to the dash price right now? It has fallen quite significantly in the past few days (more than 10%). I tried to find some news about the possible cause bout found nothing. Any ideas?" Clearly KryptoTypek has seen a change and I'm pretty sure we can discount ICOs in the past few days!
What you can't discount is that I've been calling this bear action for a while now before it happened.. or at least talking about it while others live in denial. And guess what... when I make a prediction and it comes true, someone comes along and calls it a conspiracy theory! The limitations of the budget system, the Legal proposals and the relationship between dash and Coinfirm are not conspiracy. They are facts and I welcome everyone reading this to research and see for themselves.
When the Legal proposals came along, it was touted as a positive move. It was supposedly going to boost dash by providing clarity and assurance for larger investors. What happened to that prediction? Did the price go up or down?
It's true, there has been a flurry of ICO activity and such like, but this too is something I have talked about before. I've said on numerous occasions that dash development is much too slow... that the crypto / fintech space is on fire and dash risks being left behind. Now that you finally see all the ICO activity, you're internally normalising it. But for me, none of this is surprising.
I think this is a good chance to buy more Dash, and I wished I could buy more now.
A lot has been said already but i just want to add my voice since this comment would be the most recent in 2017.
I have been studying the value of Dash for a while now and it's not looking good.
while we can argue that the value of BTC has caused the value of Dash to drop, i still think that doesnt have to be the case.
if you take Etheruem as an example, it has been on the rise for a while now and BTC is also on the rise. There are other currencies that have been rising steadily for the past month, so why should Dash be dropping.
I personally believe that Dash has a better chance of surviving the crypto-bubble and making it in the long term because of its governance system. but for now i think something is wrong somewhere and it has to be fixed, and quick.
300% in 4 weeks? how is this not good?
well now dash is almost below $50.
i hope it'll rise back up
You know right, it's currently almost below $50.
Dash is currently at 76. It went from below 50 to 76 in 2 weeks. Most of that jump is due to the "kraken" news. Being able to buy dash using fiat is a huge plus, and kraken is one of the biggest exchanges in crypto. In my opinion, dash is only going to go higher from here.
Recent spike due to Kraken.. i shall just leave this here https://www.coingecko.com/en/price_charts/dash/usd
The spies and the stupids.
Price doubled again. May never see these prices again.
Hello @intertan. I am going to create a thread called "What is the fair value of a currency?" that may answer your question.
thank you man.
People buy rumors and sell news. Since dash can't be valued like other financial assets they are subject to market forces, speculation, and many other factors.