Hello community: As we all know, within the realm

Question

Hello community: As we all know, within the realm

of Hbar, transaction costs remain fixed in terms of dollars, yet payment is executed in Hbar. This unique dynamic raises pivotal questions about the interplay between Hbar's price, demand, and supply, as well as the repercussions of these interactions on its valuation.
The concept of unchanging transaction fees is undeniably intriguing. Imagine every transaction consistently costing 0.001 dollars at the current exchange rate. However, these fees are settled in Hbar, the platform's native cryptocurrency. The outcome is apparent harmony, where fees remain constant despite fluctuations in the Hbar price.
*The Impact of Rising Hbar Price:*
Now, consider a scenario where the Hbar price escalates. This surge implies that fewer Hbar would be required to cover the same dollar-denominated fees. For instance, at a price of $0.56 per Hbar, fees for 100 million transactions would amount to $100,000, necessitating 1,785,714 Hbar. Yet, if the Hbar price were multiplied by 100 ($5.6), dollar-denominated fees would remain at $100,000, yet the requisite Hbar would reduce to a mere 17,857 hbars. This prompts a pivotal question: *If a higher Hbar price diminishes Hbar demand, how can it paradoxically drive Hbar's value upwards?*

#cryptocurrency #english #hbar

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12.08.2023

6 ответов

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Parfait BURUNDI Автор вопроса

Jeeptopdown
You need more demand - that’s why we need billion...

We have already billions of transactions, much more than any DLT, but that did not drive hbar’s price up.That’s my only concern about HEDERA.

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10 месяцев назад

Andy KoolGuy

Parfait BURUNDI
We have already billions of transactions, much mor...

Look at MC, it’s growing. That matters. Plus more tokens are released bc of more adoptions/ partnerships . We’re in a damn bear market, money isn’t coming in yet. DCA and Be patient are what you can do now.

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10 месяцев назад

Abu Zuhair

The opposite is also true. So when the price is lower there will be more upward pressure from the same enterprises. But even tho they won't be buying as much at the top they would still be buying and not selling. Unless they actually "trade" with the hbar. When Bitcoin reaches a certain point in the cycle we see people like musk selling the bitcoin off his balance sheet. My understanding is that the enterprises will still be buying albeit less but still buying. Most probably if they time it right they will buy a huge amount in anticipation of bull market or of the top in order not to buy tops...that would be even better upwards pressure.

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10 месяцев назад

Jeeptopdown

Parfait BURUNDI
We have already billions of transactions, much mor...

We have about 1 billion txs every ten days. We need about 1 billion a day to break even. We’ve barely scratched the surface. Also, functionally all transactions happening on the mainnet today are being funded by grants from the HBF. That’s fine - that’s how you build an ecosystem. BUT, none of those HBAR are being purchased in the open market, so they are not exerting buying pressure on the market. If we are looking at increased demand causing increased buying pressure we are basically at zero txs currently so it shouldn’t have any effect on the price.

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10 месяцев назад

Summit Seeker R

Jeeptopdown
We have about 1 billion txs every ten days. We nee...

I think that's a great point that a lot of people miss. When you think about it, MOST transactions are being done by ATMA with donated HBAR from the foundation. So it still remains to be seen IF enterprise will put through the TPS needed and actually buy HBAR. 🤔 With the Governing Council (amazing as it is), all the partnership announcements, amazing use cases, and even individual talent- there's really no ENTERPRISE out there buying HBAR to fuel their use case on the network. Everyone on here is gambling that that will happen.

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10 месяцев назад

Jeeptopdown · Accepted Answer

Jeeptopdown

You need more demand - that’s why we need billions of txs per week. As the price goes higher the current use cases will need less, but as you add more use cases the demand will continue to go up.

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10 месяцев назад

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