If you are a long term trader then dilution will not worry you.
However, for the rest of us. Whether we trade daily, weekly or monthly then XRP dilution is a serious concern. Why?
Because dilution seriously affects price action movement and stretches the trading timeline.
Image a piece of string. The more you lengthen that piece of string, the slacker it becomes.
That's exactly what happens with dilution. The price become slack. The speed or progression of price movement slows down drastically.
The trading timeline can only recover once the slack is taken up.
50% of XRP remains outstanding. Current estimates suggest that 1 billion XRP are being put into circulation every month!
This is stopping XRP from gaining traction and growing at a normal rate.
Why should this concern day traders?
Because the success of day, week and monthly trading of XRP is now totally unpredictable. It is based solely on the frequency and amount of XRP that is diluted.
It is like playing a rigged card or roulette table. Trading diluted crypto cannot be based on science anymore. Instead the odds are now stacked in the favor of the holders of XRP,
For this reason I hate dilution, and this is why I only trade crypto whose total supply is in circulation.
However, for the rest of us. Whether we trade daily, weekly or monthly then XRP dilution is a serious concern. Why?
Because dilution seriously affects price action movement and stretches the trading timeline.
Image a piece of string. The more you lengthen that piece of string, the slacker it becomes.
That's exactly what happens with dilution. The price become slack. The speed or progression of price movement slows down drastically.
The trading timeline can only recover once the slack is taken up.
50% of XRP remains outstanding. Current estimates suggest that 1 billion XRP are being put into circulation every month!
This is stopping XRP from gaining traction and growing at a normal rate.
Why should this concern day traders?
Because the success of day, week and monthly trading of XRP is now totally unpredictable. It is based solely on the frequency and amount of XRP that is diluted.
It is like playing a rigged card or roulette table. Trading diluted crypto cannot be based on science anymore. Instead the odds are now stacked in the favor of the holders of XRP,
For this reason I hate dilution, and this is why I only trade crypto whose total supply is in circulation.