Brave Rewards

Less BAT with higher BAT price?

By Wiwiller | SmallTownInvestor | 28 Aug 2020


I'm an active and satisfied user of Brave for more than a year and lived through most of its changes thus far. The user experience for me is so much better than with Chrome or Egde which I used before. Not gonna lie, one of the reasons why I switched to Brave was due to the promissing payouts of BAT. I had no problems so far with that one this article is just hinting at some personal occurence.

One thing looked interesting while I am at my Laptop basically the whole day. The times I get to see those little advertisements that pop up in my lower left corner of my screen fluctuate a lot. Sometimse I get my standard five adverts per minute, sometimes only two or three, but sometime I don't see them even for days. 

As I am also following BAT's price, I recognized that there is some correlation (did no mathematical calculations) between the number of adverts and the daily changes of BAT's price. Whenever BAT increases in value I receive less adverts and, hence, compensation in the form of BAT. This is not per se worrying or something that should not happen, but still remarkable. Companies purchase their amounts of advertisement at Brave and have a specific budget to spend. However, as the price of BAT is changing steadily there is quite a lot of uncertainty about the value of booked advertisments and, consequenctly, future payouts to the users.

Since the price of BAT does usually fluctuate less than other cryptocurrencies like Bitcoin, but more than stable coins such as DAI, and, in addition, the supply of BAT is changing permantly, decision making on how much to spend on advertising for a company is still more difficult to make that with fiat money. It would be wise for advertisors to purchase larger contingents of adverts when the BAT price is low and less if it is rising. That is why currently mostly crypto companies promote their product because the risk tolerance for them is smaller than for other traditional companies. The latter could easily afford to spend some money for adverts via the Brave browser channel. However, they are still reluctant to do so. Only Amazon as a big player uses this opportunity to my knowledge.

So if someone's plan is to aggregate as much BAT as possible by receiving BAT for adverts, then the rise of BAT's price will slow down your progress. If you aready oqn a lot of BAT then this is, of course, less of a problem.

Did anyone have a similar experience with that? It would be really interesting to do more research on the issue to prove my concerns. 

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Wiwiller
Wiwiller

Interested in economics, finance and cryptos. Never get too greedy, friends!


SmallTownInvestor
SmallTownInvestor

An average student from an average city with an average income takes you on a road trip through his average life. Uh.. forget to mention that I like cryptos and by studying economics I try to understand what the **** is going on in this world. This is how I invest and my opinion about the world.

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