what happens if the price of Steem reaches that of Bitcoin, or even passes it? With millions of Steem coins in circulation, do you really think that an average user is going to invest any money to buy .5 Steem, to gain only .001 MV worth of influence?
Yes. If the price goes that high, who wouldn't want vests that gibe you 250% interest rate per year on steem.
You have to remember that steem is being mined constantly, with the price going higher up this would mean that even small fish now will give out good rewards to posts in the future and the daily reward pool would be worth a lot more $ than it is now. With early investors having powered down and the holding of vests having been distributed more evenly towards more accounts, I can see this being a good possibility of the price per vest or steem going that high.
There is truth to that. In addition to the "influence" reason for investing, there is also just regular speculative investing - hoping the price will continue to go up (or at least not go down at a rate faster than the SP interest rate gives out). There does need to be a buyer for every seller though, and at some point the price will become high enough that the risk vs. reward will not encourage more speculative investors to buy back in. Then it will go back to needing more "influence" type buyers.
And another important thing is, that as an early investor (and it doesn't mean if you are you investing your efforts or your money), you are really leveraging the low prices and lower reward pool actually means higher potential rewards.
How? Right now the price of STEEM per USD is about 0.5, give or take. That means, that of that amount that is shown next to your post pays about double of the number in SP, compared to the time when price of STEEM is $1, or 4 times if the price is $2, etc. While the liquid rewards are lower, the potential rewards are great.
I think people already went through adjustment on how they perceive the payouts, because there was a lot of grumbling about the numbers going lower, with the price of the pot decreasing with the price of STEEM, so I'd rather be paid $100 now, than $200 back in July, because my SP rewards are quite a bit higher.
For sure! I actually wrote a post about that :)
Down Down We Go – And why that might not be a bad thing
Yep, but I think that not most people realize that, so I am spreading the word. 8)
Indeed! Its sad to have seen voting activity decrease lately just cause of a falling price. But rewarded be those who took the opportunity to gather more SP during that time instead.
Well, I try to vote regularly, as for posting, yeah with autumn in full swing it is a bit hard to gather the energy to do a post a day at least. Even with quite a bundle of posts in the making, because of some other commitments. Hopefully, it will be over in a day or couple, and I'll be able to get to steeming full power. 8)
I feel the same way. Wish I could spend more time and energy on making posts on steemit :)
I vote everyday, why not ? Its why we are here no? We need to keep the Steem flowing in this ocean.