Earn double payouts: Buy BAT and use Brave

By beachbummer | CryptoBeach | 26 Aug 2019


At time of writing, BAT is near its all-time low based on the weekly candlestick charts. This actually presents a valuable buying opportunity as BAT is one of the few tokens with a viable product that is already actively in use in the market!

How do you get a double payout? First of all, you should consider buying some BAT while it is at this low level. This means you will profit if there is any appreciation in the price of BAT. The funny thing is, you can actually do something to prod the price upwards!

There is a limited supply of BAT, so if demand increases, the price has to increase based on the laws of Economics -- as long as the BAT team does not screw investors over. Advertisers who wish to reach the BAT audience will have to buy BAT token as stated in the white paper (i.e. The high-level concept is the advertiser sends a payment in token along with ads to users in a locked state Xa). The more people who use Brave Browser, the more attractive it is for advertisers and publishers to hop on the platform. This positive feedback cycle gives upward pressure to the price of BAT.

How can it go wrong?

If the advertisers have to buy the BAT tokens from the market, then there will be a direct upward impact on price. However, if the Brave/BAT team has a special below-market price for advertisers to buy directly from their pool of BAT instead of the market, then there may be an indirect downward impact on price!

Why is there a downward impact? The BAT obtained directly from the Brave/BAT team was not bought from any exchanges, so it ignores the BAT order books. However, the users and publishers would have received BAT as rewards for viewing the advertisements and they may have to sell the BAT for fiat (e.g. for normal everyday expenses), thus pushing the price downwards.

I have written this based on my own thoughts and analysis of the BAT white paper, so if there is anyone out there who wishes to point out counter-arguments or comment further, please feel free. Thanks!

This is not investment advice. Please do your own research!

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beachbummer
beachbummer

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