Trying to understand the concept: what am I missing?
July 22, 2020, 2 p.m.
I am still sort of trying to wrap my head around the AMPL concept and was wondering if anyone could help clarify.
The way I see it the AMPL merely achieves a reduction in price volatility by shifting that volatility to the supply instead. And much like for other large-cap cryptos like Bitcoin, this volatility is expected to decrease over time as more money flows into this space. So beyond providing traders with a short term (<24hrs) safe haven during periods of price volatility in other crypto assets, I don't really see how else this may be used. In my mind, the moment someone focuses instead on long-term investment, AMPL looses its appeal as a safe haven asset because it will be subject to the same type of volatility, though just manifested in its supply rather than price.
All of this is ofcourse seen from the perspective of trading and investing. I do realise the advantage of having an asset which will have semi-stable "human" numbers (for everyday usage. As opposed to 0.00001433 bitcoin for a cup of coffee).
I guess my question is: what am I missing?
Can anyone help me see the greater perspective that will propel this asset from a much hyped-concept to a serious proposition in my mind?
Thanks in advance!