Assets with intrinsic value, or backed by something with physical value like gold bullion, have some sort of floor, put there by the cost of production. Even a copper penny's value has a floor, partly due to the value of copper (although this vector changes through time), and partly due to the cost of pressing a weighted amount of alloyed metal out into a medallion and stamping it with identifying marks (adding premium).
Also a corporation may have a policy of doing a stock split or reversal (or other market move) at a particular price point, giving it a floor (or ceiling).
Central banks and governments can have policies with bonds and other assets where they will buy, sell, devalue, or change rates when it reaches a particular price, giving it a floor (if you trust the promises of that bank/govt).
You're right.. not a lot of assets have a floor, at least off the top of my head. One thing that doesn't have a floor (that I know of) is HIVE.
But I think you're totally right about the ten cent level being support - I just have no idea how strong it is, given the downward momentum we've seen for months/years.
I will believe it when I see it! If we make it to 2021 without going below .1USD I'll buy you a burger. I'll be happy to see that happen so it'll be worth it ;P
Assets with intrinsic value, or backed by something with physical value like gold bullion, have some sort of floor, put there by the cost of production. Even a copper penny's value has a floor, partly due to the value of copper (although this vector changes through time), and partly due to the cost of pressing a weighted amount of alloyed metal out into a medallion and stamping it with identifying marks (adding premium).
Also a corporation may have a policy of doing a stock split or reversal (or other market move) at a particular price point, giving it a floor (or ceiling).
Central banks and governments can have policies with bonds and other assets where they will buy, sell, devalue, or change rates when it reaches a particular price, giving it a floor (if you trust the promises of that bank/govt).
You're right.. not a lot of assets have a floor, at least off the top of my head. One thing that doesn't have a floor (that I know of) is HIVE.
But I think you're totally right about the ten cent level being support - I just have no idea how strong it is, given the downward momentum we've seen for months/years.
I will believe it when I see it! If we make it to 2021 without going below .1USD I'll buy you a burger. I'll be happy to see that happen so it'll be worth it ;P