The economics of BAT, and why the future is positive
The economics of BAT, and why the future is positive


Many people view BAT to be a type of 'free money', that just appears out of thin air from using the Brave browser. The theories of economics dictates that this will increase supply over time but won't increase demand, causing the price of BAT to drop.

In reality, this is not so. BAT's supply is actually fixed at 1.5 billion. So where does the BAT come from? 

Essentially, you get BAT on Brave by viewing ads. The companies themselves are actually paying BAT to run these ad campaigns, and that BAT goes to you, as a payment for your viewing. As a payment for your basic attention, you get Basic Attention Tokens.

The cycle continues. When you earn through BAT, what will you do with it? You'll either sell it, or gift it to your favourite content creators. These content creators are being payed for having your human attention, and get BAT for it. They continue the process, either selling or moving it on. When you sell, it is often purchased by these companies who wish to run ads. This is why BAT's price doesn't drop. It is not composed entirely of dumpers, because it has an incredibly healthy economic ecosystem of buyers with a reason to buy, which is fundamentally important for the growth of a cryptocurrency.

Many people suggest that something such as Brave Ads becoming available on iOS will crash the price as a huge amount of new users come online, causing massive supply increases and dumping. Again this is not the case. As the supply is fixed, as user count increases which it no doubt will, each person earns less and less BAT as rewards are spread out more and more. This puts small amounts of supply in many hands. At the same time, the amount able to be purchased decreases as more and more companies clamor to purchase BAT to be able to advertise towards many new potential customers. This is why the price of BAT will increase - everyone wants their smaller amount of BAT to have the same USD value as their previous, larger stack of BAT.

 

Essentially, BAT has very successfully monetized human attention, and created a very powerful crypto which has genuine reason for people to continue circulating it. To cut a long story short, a larger userbase of Brave and BAT will increase the price, not decrease. I can easily see BAT reaching a billion dollar market cap in the future. So why not go earn some BAT today, for free! : https://brave.com/mia283

 


manilpwn
manilpwn

Head programmer of the Miasma cryptocurrency Also write on medium under the name Kayde Smith


The history and public view of cryptocurrencies
The history and public view of cryptocurrencies

In this blog, I examine how the public views cryptocurrencies, and how the situation we are in today came to be.

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