Shortwave, I don't think it's overvalued, honestly probably extremely undervalued considering, outside of a few consistent market makers on Retoswap offering to sell Monero for >5.5% over market price, there'd be nearly 0 liquidity in the buying direction which would shoot the Retoswap price way up. Compare this to selling in which there are constantly 0% under market offers sometimes even <0%
My conclusion here is that if Retoswap wasn't pulling their prices from manipulated central exchanges, and Monero was delisted, the price would go bonkers. I'm trying to imagine a price where I'd see 0%over market sell offers consistently, maybe $600? $700?
When it spiked to $460 I temporarily saw a handfull of 0% Zelle offers but those got bought up in minutes. If people are jumping on the opportunity to top blast at $460 and creating more offers to buy XMR than sell to me it's clear that the real price is higher.
What are your thoughts?
Replies (2)
What I care about most is stability of prices over long timeframes.
If you were to go to your local grocery store and pick up a loaf of bread, and the price of your bread was listed at one fiat price, and by the time you got to the register to pay for it, it was a different fiat price, you would be incredibly upset.
With that kind of fluctuation going on, you can't make long-term plans for savings and spending because you don't know what the price of the item is going to be when you need to purchase it.
By using the average, you strip away that volatility and can guarantee a fixed price.
That's the great thing about markets though. If you don't want to buy products, you don't have to buy products if you think they are unreasonably priced. I would much rather see a steady price over a longer time frame than to get the absolute cheapest rock bottom price right now.
That's not what I was asking about lol. I'll entertain this new goalpost but I'm still curious what you think about my undervalued hypothesis.
Price instability is a long ways away since most volume is on darknet markets which are fiat priced and via centralized exchanges. We can work to expand the clearnet market priced in Monero but the real price stability boom would be delistings since there would be limited to no manipulation and paperization.
