DEC dips below $0.0014 today
As of this morning DEC (Dark Energy Crystals) has dropped to $0.0013839.
The value has been steadily spiraling downward for two months and is 50% where it was a month ago.
So what does this mean to someone without an economics background? That's me, I'm the guy with no economics background. I took Econ 101 and that was a long time ago!
I think what it means is that if the underlying currency goes down in value, then the assets also decline. Splinterlands cards are purchased with DEC, so when DEC is declining, are cards less desirable as assets to hold?
I bought a few cards this week below burn rate.
My assumption is that if DEC has less value, and cards have less value, then at some point we reach the stabilization point where buying cards and burning cards is equal in value to DEC or even profitable?
Which leads me to the request for help from those with greater wisdom in economics and investments.
My initial assumption is that DEC is held in big chunks and when those chunks dump into the market, the overwhelming supply drives down DEC value. As the DEC value dips, then cards reach a favorable burn point. Cards are burned. Since cards are finite number, the supply of cards declines, and card values go back up.
Feel free to comment and help a monster out. I love Splinterlands. I am in it for the long haul. I just want to learn more about the economics of the game.
Also, just a quick shoutout to #tribalex and @peak-monsters The screenshots are from their respective websites. If you want to track cards, trade cards, rent cards and sell cards, I recommend www.peakmonsters.com
If you want to play a great game where you can earn money, play Splinterlands This is my referral link.
Finally, the HiveFive team is working on the second edition of Blockchain Vampires. Get in position early by using either #bvamp or #bhuman tags.