Bitcoin vs Ravencoin Halving Comparison & Analysis
Ravencoin is scheduled to have its first halving in January 2022.
I hear a lot of people saying BTC has a lower max supply which is true:
Bitcoin Max Supply: 21,000,000
Ravencoin Max Supply: 21,000,000,000 (1,000x more)
Stocks have the ability to do what is known as a reverse split. This is often done in the stock market when a stock price gets too low and they are at risk of being delisted from the exchange. The stock might be at .25 and they do a reverse split of 4:1 and it's then trading at $1 but there is 1/4 less stock available.
If Ravencoin had the ability to do a reverse split of 1000:1 to match Bitcoin's max supply amount, it would be trading at around .07×1000=$70-$80 right now if at .07-.08 cents.
That is actually really impressive when you analyze it like that and shows that there is a lot of interest and support in the project, considering BTC was only at around $12 before its first halving. RVN would then be actually more popular in comparison in time. This of course does not guarantee this trend will continue but it's interesting to note it.
1,000x more supply sounds like a lot, however keep in mind that RVN allows for the burning of tokens to create assets and if a massive amount of assets and NFTs are created on it then in the long run this max supply number could significantly drop when mass burning starts to occur with asset creation.
It would appear the best thing that could be done by large venture capital investors would be to create a very successful NFT platform on the Raven blockchain. It may not be the best, it may not even be the most popular, but if it gets enough marketshare and is popular enough as a solid alternative to sites like Rarible and Opensea, it would produce a vehicle that would excite investors while at the same time, lead to burning of RVN on the backend to cause the price to accelerate upward faster.
Lets say a large investor put $500k in Raven at .07, but then took another $500k and invested it in creating a massive RVN NFT platform, got licensing with celebrities and hired them to create content on it, and had a staff that contacted corporations to get corporation partners, and did marketing on social media. To recoup their $500k on their NFT platform RVN would need to double to .14 which is a price it has been at before. They would then be burning a significant amount of RVN as well further accelerating their return on investment while getting amazing press and attention to the RVN blockchain.
That is just one example.
Another example could be an insurance company that decides to add $500k RVN to their treasury, but then invests $100k in creating a software that ties insurance to the RVN platform as assets.
Another example could be an auction/collectible/jewelry/trading card company that decides to add $500k RVN to their treasury, but then invests $100k in creating a software that ties all their auction/collectible data to the RVN platform as certificate of authentication assets.
Essentially all it would take is a large investor or company deciding to invest and then build on and use the RVN blockchain platform.
The concept then is almost like being able to invest in a coding language. Like being able to invest in Java or Python and as more people choose to build things with it, you make more money. The blockchain then is almost like different blockchain languages and structures and we are just waiting to see who chooses it to build things with it.
The benefits of them choosing RVN is they'd choose a platform that is associated with Bitcoin code, has survived a bear market, and has large mining support and a large community. It also has a reasonable price point for initial investment and funding of their project to recoup their initial investment.
Keeping that in mind, that it really comes down to a large hodler investing in the blockchain, and then investing in using it. For example, Arrington Capital Launches $100 Million Fund for Algo which of course happened after they invested in it. So it's the same model that could one day come to RVN hopefully. The big marketing push should really be about why build on RVN and then get that out to all the corporations and venture capitalists that you can and fund hackathons that work to build on it.
Either way, lets look back at halving data.
-The first Bitcoin halving, which occurred on November 28, 2012, saw an increase from $12 to $1,207 (100.58x) on Nov. 28, 2013
If Ravencoin had a similar halving result, it would depend on where we are at before the halving of course. Do we stay where we are at, does BTC move back to $60k+ before then and cause a rally in RVN back towards the high? Lets look at some numbers to see if RVN were to do the same after its halving..
.07×100.58=$7.04
.08×100.58=$8.04
.15×100.58=$15.087
.20×100.58=$20.116
.30×100.58=$30.174
-The second Bitcoin halving occurred on July 9, 2016. The price at that halving was $647 and on Dec. 15, 2017, bitcoin's price had soared to $19,345 (29.899x).
If we continue with our above low and high numbers we can see what this range could be…
$7.04×29.899=$210.48
$30.174×29.899=$902.172
-The most recent Bitcoin halving occurred on May 11, 2020. On that date, bitcoin's price was $8,821. On April 12, 2021, Bitcoin's price soared to $63,558 (7.205x)
If we continue with our above low and high numbers we can see what this range could be…
$210.48×7.205=$1,516.508
$902.172×7.205=$6,500.14
This of course is all speculation analysis and is not financial advice. I know these numbers seem so astronomical and hard to believe and would be shocking if you woke up one day and saw them I'm sure. Either way I think they are fun to look at and consider. The true test will be to see what happens before and after the first RVN halving in January 2022.
Source on Bitcoin Halving Data:
submitted by /u/ChiefofStonks
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