Hi Friends,
If you look at the Steem quotations in the last weeks, so it went properly up and down. After a prolonged downtrend, the trend reversed on Thursday: within four days, the price rose by a considerable 100% and is currently roughly back at the initial value of a month ago. All together around 100 percent up and down within 30 days, that’s a rally :)
Why I do not worry about this volatility of Steem ?
On the one hand Steem ( and Steemit ) is still an experiment, which is easy to forget after a lot of price gains within the last month. And not just an economic experiment, but also a social one. Experiments must also be able to deliver unpredictable results, otherwise they would be dull.
In the case of Steem, volatility is now one of the most important indications that it will be still exciting, as well as in recent weeks. That something happens that offers space for unforeseen things. If you are interested in the findings of the Steem and Steemit experiment, volatility is therefore a very important indicator.
Volatility gains momentum
Volatility also frightens. It hinders institutionalized large-scale investors and other speculators, who are less concerned about the project than primarily about profits, thereby gaining access.
This is important inasmuch as Steem is still a comparatively small phenomenon with a market capitalization of little more than US $ 370,000,000 and a large number of investors who are purely fixed on income would certainly distort and slow down the experiment. The volatility here prevents the entry of too many (large) investors and opens up the chance that Steem’s user base will be further widened and the price will continue to rise. Both would give the project further freedom to stabilize itself, allow for dynamic development, and limit the impact of potentially large players.
Volatility is adjusting
Moreover, the volatility cleans the ecosystem of precisely those speculators who are concerned mainly about the money. If the price decreases massively, this can trigger a chain reaction, in the course of which mainly those who sell their Steems, who least know the topic or are interested in the idea and the concept behind Steem. This adjustment is positive in that no one should invest in Steem anyway, who has not understood it (or not at least tried). The volatility thus provides for a self-correction of the ecosystem of too many speculators, excessive expectations and should ultimately also remind you that money is not the only factor on which the success of Steem and Steemit can be measured.
I am quite confident about the future of Steem and wonder what the results of this project are - due to unexpected findings, despite enormous volatility in the last month.
Happy Steeming !
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I completely agree, the volatility is good for many reasons, among which is it provides a cheaper way to buy more steem in the low periods. I am only new here but steem like all other alt currencies also closely follows bitcoin, but the larger we become the more valuable the whole project will become. I think steem is fantastic and am enjoying watching the value of steem rise knowing I can't easily sell as it is all powered up and I am in for the long haul!
thanks for your comment !
Sounds good to me! Keep the volatility, avoid the manipulation. Keep on steeming!!!!
......but what if the manipulation IS causing the volatility? Surge Buy and Sells to push price up or down, to then capitolize on the price change....like hedge funds do???
at this current market cap I not think there is manipulation by the big player right now..
I totally agree with the post and I am in steem for the long haul, Steem will do great things in the future the dip is good so one can coup more steem... It is sure following the path of any good alt out there....
agree ^^
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There is alot of volatility due to all altcoins being somewhat tied to the price of bitcoin ,then their actual fluctuations. Volatility is great for short term traders because it gives them the opportunities to make money. If a coin/stock/currency is always going up or down, then it is hard to make money trading.
yes - true
I was excited when price was dropping last week.. It's fun lol! Time to buy then!
did you bought than ?
Nope.. I was waiting until it went to maybe 20 cents.. I think it still can, in-fact I think it'll even take another trip to 10 cents again. So yeah just being patient.
Did you buy then?
Nope :) For me there is one question not answered finally..The amount of vests throwed into the pool with every upvote ( the bigger the more..) I no have final opinion about that, but it looks to me that this could be a problem for price stability in future if not fixed by another hardfork one day. Not this thing itseld, but the amount and the speed of it :)
I get what you're saying. I haven't actually ever thought about that to be honest. That's a pretty in-depth reason.
For me, I like the volatility.. It's great for getting in while it's low, then selling when it's high, and then repeating. It will be nice if the next HF can solve the vesting issue.. But until then, I'll take as much advantage of this as possible :)
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STOPbah
STOP ! I no want !!
Possible to stop that ?
That would be great !
LOL
Short term ups and downs are no issue. Large investors are prevented from large selloffs due to the 13 week power down rule.
I agree with you. This is a long term project.