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Ignore the price

Every now and then we write about price. The last time was when ADA reached $0.60USD which seems a long time ago now. We don’t write about price often for a reason. Why?

Simple. In the short term price discovery (the technical term for the market process of determining the value of an asset), especially in a fast moving space like Crypto, is a variable quality process. Information is not equally shared amongst all participants. It is in the economists terminology an “imperfect market”. In the long term price discovery is much more accurate.

If we shouldn’t pay too much attention to short term price fluctuations, what aspect of the longer term price is interesting?

In our view in the medium to long term only one trading pair, which is ADA to BTC. This is because BTC still acts like the reserve currency in the crypto economy. It is the gorilla in the room. When it catches a cold all others do as well. When it moons the market follows.

This means the chart to pay attention to is the one above (from coingecko in this case)…which shows how ADA measures up against BTC. We can see from this that it still has some way to go before it equals the highs from when it first entered the market.

So let’s stay focussed on the job. While we are making excellent progress there is a still some distance to run. When ADA is a serious competitor to BTC we will have achieved something real and lasting.