BBD Explanation - Why the price goes up?
[When asked a question about bbd price appreciation this is how we responded]
Yes i believe they touched $2.45. To this is the kinda complex part about bbd's. They only go up not down. So how is they go from $1 to $2.45.. to around $1.40 or so and not go down? We'll explain how they work.
So BBD's are a backed dollar and they go up not down. The way this works is they inflate based on the growth of the bitcoin myk network. What is the bitcoin myk network. This is the native token btcmyk. It can be thought of us a bitcoin fork meets universal basic income. We believe that freemium services like universal basic income will keep our network growing day after day. At this point in time we register about 60 new accounts per day. This is something probably unheard of or not being done by many cryptocurrency applications.
So if this is the case why did we go from $2.45 to $1.40 if we can't go down. Well we didn't really go down. You see bbd's are pegged to the usd not cryptocurrencies. So what a bbd does is it takes into its markets enough crypto of the base trading pair to match the new value generated from the growth of the btcmyk network. In other words that new growth.. value money...goes into bbd's.
So for example the network grew by about 35% last month. BBD's started at $1. The accurate value of a BBD would be around $1.35. So why did they reach $2.45. They reached $2.45 due to the large swing in the hive coin. Hive significantly increased it's value this allows for a temporary even you may say opportunity in the bbd value.
BBD's are pegged to the usd and backed by the cryptocurrency that equals usd brought to market value. So this means that if BBDs went to $2.45 they'd have to be adjusted back to $1.35. Why is this good? This is good because this actually gives BBD more high liquidity and stability.
BBD's are highly liquid and can't be manipulated or dumped. This is good because many cryptocurrencies show patterns of bubbles or eradicate quick gains and market crashes.
[ How should you determine the value of a BBD? When to buy or sell?]
As BBD's can't be manipulated or market controlled you should check the inflation rate of bbd's. You find this by tracking the now registered accounts and taking the now value of the price and estimating how far accounts are growing . An easy way is just check bitcoinmyk.com or our discord for present inflation rate and price.
example: Our network grows by 30% in 30 days. BBD's will increase in value by 30% in the usd rate. This is not the cryptocurrency rate. So this is what keeps BBD's more stable.
[ Will inflation of BBD cause insolvency]
Whereas 80% of bbd value generally stays in the bbd market. It is possibly bbd's could experience a complete market dump at anytime. As 20% goes into the native token to encourage network growth and liquidity the source of the bbd value. If this happens bbd's could plumment. However if this did happen then bbd's would take on the characteristics of the old usd before 1970 in which it could be redeemed for gold. This would mean any bbd holder would be redeemed in btcmyk the native token of the platform. This represents our network gold and markets have held value for years.
We hope this gives you a better understanding of bbd's. They don't go down in value its cryptocurrencies that are going up and down. BBD's maintain their stability can't be manipulated but go up gradually based on network growth making it a good candidate for global remittance, commerce and overall confidence.
Claim your free bitcoin myk tokens at: https://www.bitcoinmyk.com
join our discord: https://discord.gg/n7aCkcr
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