The price of cryptocurrency is determined by two main factors.
- The purchase or sales flow of cryptocurrency (purchase of cryptocurrency increases price, selling lowers its price)
- The volume of exchange for cryptocurrency given that, for cryptocurrencies, a transaction corresponds to verification of that transaction through mining that introduces, into the market supply, new cryptocurrency units as a reward to the verifiers
This suggests that the value of a cryptocurrency depends only on its users. If everyone sold their Bitcoins tomorrow and nobody used them anymore, the Bitcoin price would collapse.
A person’s actions are based on emotions (such as panic selling caused by a price drop) and more or less complex reasoning. Is there a way for a cryptocurrency to protect itself from this kind of selling and the resulting actions that bring down its price?
Liracoin offers a solution for protecting the value of Liracoin (LIC) cryptocurrency. The method is as follows:
“Liracoin was conceived so that there will not be any significant decrease in price. The value of the cryptocurrencies fluctuates constantly […] The problem arises when large quantities of money are sold by the whales, the big buyers. The whales are dangerous because, with one sale only, they can strongly affect the currency value. They can rapidly drive up the price when they buy, and bring it down even more rapidly when they sell. A drastic fall of the price can spark a panic sell from other currency owners, risking a fall so significant that can cause the currency to fail. The Liracoin system is built to prevent the participation of the whales, as users have a weekly purchase limit of coins on the exchange.
Liracoin protects against misuse of the exchange. Liracoin can be purchased only through approved exchanges, and this practice will continue as long as it is deemed necessary. […] Once an extended peer-to-peer structure is established, the exchanges will no longer be necessary and people will trade with each other directly. Liracoin then will be spent in many shops. At this point, users will no longer trade Liracoin for fiat currency in order to buy what they want.”
In conclusion, purchase limits prevent the fast growth of large wallets which are able to manipulate the market. It would be unusual to think that a cryptocurrency, or any other brand, does not accept a proposal of $100,000 revenue. The stability of Liracoin is the priority, allowing for organic growth. These purchases can only take place on approved exchanges where Liracoin’s chosen purchase limits apply.
A history of a year and two months to date proves that Liracoin price has always resulted in changes that fluctuate only in cents but has never recorded price peaks followed by dizzying collapses (from $0.80 to $3 on June 2019). This is a great choice for cryptocurrency lovers with long-term vision.