Yes, You Can Make BIG Returns Investing in AMPL: This is How

By Zacharias | RekTimes Archive | 26 May 2021


A lot of confusion surrounding how Amplforth and more specifically AMPL operate has led to a larger misunderstanding of the value of this cryptocurrency. Many see it as just a bad stablecoin or only see FORTH, the governance token, as the leading candidate to make money with if choosing to invest in Amplforth.  This is simply not the case.

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Outlook for Investing in Amplforth (AMPL)

Consider the tokenomics of Bitcoin.  For Bitcoin to reach its steady, secure, long term storage of value properties, Bitcoin has to steadily grow consistently forever with no major market shocks and hope that one day the price ends up finding stability.  This could happen, but why ride on hope when Amplforth does this automatically and algorithmically.  Amplforth uses the daily rebasing to ensure dilution does not occur.  So, what is dilution?  Think of it this way. You buy some Bitcoin at $40,000 USD.  An hour later, a billionaire buys into Bitcoin too, but significantly more than you.  While this pushes the price up and helps make you money, your overall share of the Bitcoin network was immediately significantly diluted.

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Now consider the same premise with Amplforth.  Say you buy AMPL and it equate to 0.01% of the market share right now.  This would be approximately 17,500 AMPL as the market cap is currently around $175 million USD at the time of writing this.  So, the same billionaire also chooses to invest after you and adds $100 million to the market cap.  Due to the economics of Amplforth, your percentage will remain fixed even after the billionaire buys in.  So now, you still own that same 0.01% of the total market cap of Amplforth, but now the market cap is worth $275 million and you now have an extra 10,000 AMPL added to your bag automatically.  Additionally, the money you paid for that 0.01% of the market cost 17,500 AMPL. For the purposes of this discussion, we will just say the price was and will stay at $1.  Now, for someone to buy that same percentage after the billionaire buys in, it will cost $10,000 USD MORE than what you originally paid for the same percentage.

This is how an extraordinary amount of money can be made by holding onto AMPL.  During the last market expansion, the market cap of Amplforth went from under $20 million to over $750 million in a handful of weeks.  Owning just 0.001% of that $20 million would have rewarded you 75,000 AMPL.  Not a bad gain from an initial investment of 2,000 AMPL.  Talks of the net great expansion could take Amplforth form the hundreds of millions now into the billions as more integrations come out, such as the AAVE integration.

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Just remember for Amplforth: the gains made are not necessarily in the price action, although when AMPL is under $1 chances are you should buy some as it automatically tries to rebase so the price sticks to the $1 mark.  In AMPL, what goes down must come back up eventually.  The major gains, however, to be made in Amplforth are growth in the overall network.  As time goes on, the percentage that you own will become increasingly more and more valuable over time.  It will also become increasingly more and more expensive to obtain your percentage as the network continues to grow.

Hopefully this helps to understand why you should invest in Amplforth and that possibilities of future gains that can be made by holding AMPL in your wallet.


This isn't financial advice.  While I aim to provide my insight as accurately and bias-free as possible, please do your own due diligence before choosing to invest in anything, including Amplforth.

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Zacharias
Zacharias

I like DeFi, philosophy, and economics | Founder of RekTimes


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