Have any of you thought about what would happen to the market if memecoins were eliminated and we were the same investors for real cryptocurrencies?
1 - Imagine the investors' capital as a cake.
2 - The number of pieces of cake would be the number of cryptocurrencies available.
3 - And that there were only cryptocurrencies with capital backing.
The portion would be larger for each cryptocurrency, right?
That means a larger investment capital for each one, that means that there would be many investors for each cryptocurrency, which would only raise the price of each one. Now I give you another perspective:
1 - The investors' capital as a cake.
2 - The number of pieces of cake would be the number of cryptocurrencies available.
3 - Now let's take into account the memecoins, which do not have any financial backing, that means that the only thing that maintains their price is the market.
The portion is smaller, right? since there are currently more memecoins than cryptocurrencies, this divides investors' money since the money is literally invested in nothing!! instead of some serious asset, what I mean is that if memecoins did not exist I assure you that the price of BTC or ETH would be through the roof and the market would be more stable, imagine a market of 100 cryptocurrencies and there were only 10 cryptocurrencies it would be 10 for each one, but if we change history and put 100 dollars for 25 cryptocurrencies and it would touch 4 dollars for each one, this lowers the value of each one and divides investors
#MarketDownturn