INTRODUCTION

Moons are a godsend opportunity in this subreddit, giving many uninitiated a way to mingle in the cryptocurrency world without much financial sacrifice. For some of us, it's the only thing we have.

However, with our current 2x upward move with Moons in the past few days (Fig. 1), it might be time for even the most professional of us to for once, seriously consider the prospect of HODLing moons.

ABSTRACT

Moons are a great HODLing alternative. Combined with its ease of use to both utilize and acquire, it is quite viable, especially to those without cryptocurrency intuition or investing opportunities.

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Fig. 1, a graph depicting the current ~130% gain (~2x) move on Moons during the last week from low to high.

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FACTORS THAT PLAY IN THE ECONOMICS OF MOONS

'Halvings'

In Bitcoin, halvings are a 50% cut in a miners theoretical profits every ~4 year cycles that cause artificial drop in supply, and thus a price hike. These are essential sacrifices needed to maintain a constant, upwards price trend over many decades. This price hike trend due to halvings are illustrated in Fig. 2.

In moons, 2.5% is cut from every succeeding distribution, each cycle lasting about 28 days long. In this situation, the 2.5% is the Bitcoin's equivalent of 'halving', the contributors the 'miners', and the 28 days the 'epoch' or 'halving cycle'. Since a 2.5% theoretical production decrease is much less than Bitcoin's 50% halvings, these distribution cycles don't usually cause a lot of mooning (hehehe) just by themselves. The effects of 2.5% distribution halving is shown in Fig. 3.

IN SUMMARY

Long term, this makes Moons a viable, not preferable, but viable HODLing option. It has at least some price momentum variable that keeps Moons on a theoretical price increase for many years, if not decades, to come.

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Fig. 2, a graph depicting the decades long logarithmic Bitcoin price trend, each white arrow pointing to the halving that occurs prior to a massive price increase.

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Fig. 3, a graph comparing the 2.5% distribution 'halvings' as blue vertical lines with roughly a 6 month price history of Moons. The white arrows depict the price increase. Notice how some price increase's don't exactly align with the 2.5% distribution phase. This can mainly be attributed to the unevenness and random possibility of when a collective group of Redditors will sign in and collect their moons, before selling/ buying more at market price. This is unlike Bitcoin, because there is no 'lag' randomness when you decide to get on your phone and 'collect' your Bitcoin. The market is also a heck of a lot bigger, which evens out the randomness of when someone decides to sell or buy Bitcoins at market price.

Cryptocurrency Coin Cap

Moons are capped at a theoretical limit of 250,000,000. Of course, due to unclaimed moon distributions, lost wallets, et cetera, we will most likely hit a much lower number.

Coin caps just by themselves are barely a glimpse into the long-term future of a certain cryptocurrency. Take an example of gold, for instance. It isn't the entire world's supply of gold that determines its preciousness and price, but the process of mining it and the expenses of such operations. That, and combined with its demand, valuates its price.

They do help figure out price targets though. For instance, a coin cap of 100^10000 is unlikely to hit a dollar at its coin cap peak, as that would surpass the GDP of the world. Unless..?

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DEMAND

One of the biggest reasons why Bitcoin's price trend continues to hike up over years and years is due to its demand and use case as a currency. It doesn't really matter how much Bitcoin costs, as long as the buyer is willing to buy and use it. This provides a profit margin for many HODLers, buying lower and selling it high.

In the circumstance of Moons, its use case is mainly governance over its own ERC-20 token system and tipping for other Redditors. It isn't the best use case, but certainly holds promising changes as Moons are planned to be migrated to the Ethereum Mainnet on Layer 2, giving it a possibility of a viable currency too. This makes Moons again, not a preferable, but a viable HODLing alternative as its long-term future remains very fluid and open.

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Cryptocurrency Sentiment and Hype

Moons, just like any other alt-coin (alternative coin, that being a cryptocurrency other than Bitcoin), will follow Bitcoin's public sentiment, power gaps, and price hype. The relationship between Bitcoin's price trend to Moons is illustrated in Fig. 4.

Fig. 5 illustrates a curated example to help put some sense in the random squiggly lines. The first absolutely massive price spike was due to Bitcoin's emergence in both price and popularity. The second, most subtle one, was due to the power gap created by the loss in dominance but sustained market momentum. For the sake of illustration, this power gap's effects on the alt-coin market is presented in Fig. 5. This is a story of another topic, which is pinned in my profile if anyone wishes to read further.

IN SUMMARY

Since Moons originate and are solely adopted from a biased cryptocurrency environment (r/CryptoCurrency), it isn't the most fundamentally grounded asset/cryptocurrency to HODL, especially in an environment where sentiment flips like a dime. Still, due to its strong adherence to Bitcoin's price trend and its biased community (which doesn't have to be a bad thing), this makes Moons a somewhat preferable HODLing opportunity.

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Fig. 4, a graph comparing Bitcoin's price history to Moons.

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Fig. 5, a curated graph explaining a summary of the past two Moon price spikes and how they correlated with Bitcoin.

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Fig. 6, an illustration of the effect's of the same Bitcoin power gap, but on Ethereum's price trend. More on this in another post pinned on my profile.

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HOW DO I GET MOONS?

It's a very simple process.

Get Reddit on your phone and open a 'vault'. This is a proper wallet connected to the Rinkeby Test Network (that soon will be migrated to Ethereum Mainnet) and is a working, properly maintained ERC-20 token.

You can receive Moons by contributing to this subreddit, which is based on how much karma you earn in this community. Moons are given to you in 'snapshots' every 28 days, which for each karma point, you will receive about ~0.2 ish Moons in your 'vault' or wallet. Remember that comment karma is worth double than post karma!

For more information, visit the official wiki page on Moons for this subreddit.

TO CONCLUDE

Moons are a decently viable HODLing opportunity. For especially those that own nothing but Moons, go nuts man!

As for the price, it is quite the lengthy proposition, but I personally believe MOONs have the potential to hit a dollar, although it could take anywhere from this year to the next 4. However, moons are a very early market, its inception being just June of last year. The next Bitcoin? Probably not, but only time will tell of course :)

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Disclaimer: I am not a licensed financial advisor nor does this content attempt to replicate any of the sort. This content is listed strictly for entertainment and educational purposes. When in doubt, contact a professional. Your money, your problem.

All content is original to me, including the charts and graphs.