What Brave's recent upgrades mean for BAT.

What Brave's recent upgrades mean for BAT.

By MadMaxx | Psycho Crypto | 22 Jan 2020


Brave has been making a few adjustments to their browser lately.

They added support for Brave rewards for 177 regions recently, and they plan on releasing passive mining of BAT tokens to users whilst browsing, as well as image ads that don't have to be clicked to provide income in BAT.

All that is great for the user, but what about us the traders? What do we benefit from all these upgrades happening with Brave?

And if there are more users of the browser, that means that there would be more BAT tokens created. Pumping more tokens into the market will reduce the price, won't it? 

And if all these users convert their BAT to BTC, won't that affect the value of BAT overall?

I'll answer these two questions in this post.

First off, yes. Pumping more BAT into the system will decrease its price, if these users instantly sell their BAT upon getting them. Most users however won't do that.

Most users will hold their tokens hoping for better value. After all, it could prove to be free money. And since KYC is required to withdraw tokens, most users won't withdraw their tokens instantly. Brave has thought this through.

And for the second question. Changelly has stated that the amount of BAT converted to BTC everyday using their instant feeless exchange service reaches about 1BTC. Yes, everyday 1BTC worth of BAT is converted everyday. That's about 18000 BAT everyday being changed to BTC. That's 1BTC worth of value being removed from BAT everyday. And the price has still remained constant. Fairly.

You see, BAT's tokenomics are very strong, and it has a very strong community. These factors, added to the fact that BAT doesn't have that high of a trading volume makes the price remain constant, regardless of how much value is deducted from it everyday.

Thanks for reading.

 

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MadMaxx
MadMaxx

In the eternal quest for crypto fulfilment. I'm an obese frog on the internet, what I say most definitely isn't financial advice.


Psycho Crypto
Psycho Crypto

Fun experiments with crypto!

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