SUPPLY and DEMAND of STEEM
As a MASSIVE FAN of STEEMWHALES.COM I highly recommend those that have yet to have a play around on their site they spend a few weeks getting to know the data.
When I first joined STEEMIT of last year I must have spent the first 8-12 weeks playing around and rummaging deep into the data that was available, like a child in a sweet shop.
Earlier today I was having a good dig around and there was something bothering me about the price action of STEEM over the last 6 - 8 weeks and I just wanted to share this with you and see if anyone else has spotted it?
SUPPLY and DEMAND
There are so many people that appear to be getting their heads wrapped up in knots trying to understand the mechanics of how STEEM is valued.
For me it is very simple.
It is purely SUPPLY vs DEMAND.
If there is an abundance of SUPPLY and NO DEMAND, the price will likely go down.
If there is a MASSIVE DEMAND and little SUPPLY, the price will likely rise.
SIMPLE QUESTION
My question is therefore very simple.
Is the DEMAND for STEEM exceeding the SUPPLY of STEEM? These two charts would suggest so..!!
Has anyone else noticed this?
Thanks for reading.
Stephen
I'm thinking that the current 50/50 payout being half in SBD rather than STEEM is helping this. Unless people are holding, powering down, or using the SBD to buy STEEM, they really do not have any to sell. If the 50/50 payout was half in STEEM, I think that we would see a lot more STEEM for sale, right?
It is indeed helping steem. And I think it was a deliberate choice of steemit to flood the market with sbd to cool the price. And as a scondary effect increase demand for steem. Personaly I liked it better before. It is just extra to constantly burn sbd, which I don't care so much for.
"And as a secondary effect increase demand for steem". I could not agree more and if you combine this with the explosion in New Accounts I think this is starting to put a tremendous amount of pressure on the Supply. Demand is heading to outstrip the Supply fast..!! Stephen
Unlike you, Stephen, I'm in no rush. I miss getting huge amounts of steem at 13k sat.
Thanks for this I appreciate it. I think it is a combination of things. The new reward structure and the increase in number of Accounts. Let's keep it very simple. Let's say if there was 236,000,000 STEEM and 236,000 Accounts. That would be 1,000 STEEM per account. Now lets say that those 236,000 Accounts became 246,000 and no one wanted to sell their STEEM. I think this is what we are witnessing. On other words there are more holding on, then selling off.!! Stephen
This is exactly my thoughts on this.
Interesting @stephenkendal... it has been a while since I've been "data mining," but I agree SteemWhales has a lot of good stuff, if you know how to find it.
I haven't been giving a lot of attention to the price movements of Steem recently, on account of the "weirdness" that has been going on with Poloniex deposits and withdrawals... since they have the lion's share of the trading market.
Anyone else thinking what I am thinking and that maybe, just maybe, they want to hold on to what they have got..!! If I had something that everyone wanted and I didn't want to sell it, I would tell everyone their wallets were broken..!! Stephen
Supply and demand is the real game, isn't it?
I'm on the exchanges trying to convert my SBD into STEEM in order to power up and recover from the power down I needed to get me over a financial hump. I'm also seeing a lot of new people who have the potential to bring more value to the site. Hopefully it offsets the equal amount of junk I'm seeing too. Thanks for the reminder about SteemWhales. I've only used it to track my own progress. Now I know it's got a lot more to offer. :)
"Now I know it's got a lot more to offer." Three things I love about STEEM/STEEMIT is TRANSPARENCY, TRANSPARENCY, TRANSPARENCY..!! Steemwhales.com is simply FANTASTIC because it allows you to see the "bigger accounts" in EXACTLY the same way as the tiny ones. I am always digging deep into second guessing what the bigger accounts are doing and what I wanted to share in this Blog is that their accumulation appears to be rolling over as DEMAND begins to outstrip their SUPPLY..!! Stephen
@stephenkendal - there is so much to learn about the back end and I will be the first to admit I do not have a head for numbers and charts. I never did and a lot of your posts go over my head but I am trying! LOL
Maybe you can help shed light on some of my observations... With the influx of new people obviously the demand is going to be higher. But if we have a finite amount of STEEM created each day, this certainly increases it's perceived worth but doesn't it also push our rewards down in value because it's more widespread?
And I guess my biggest question is with SBD trading close to $1 again where its peg is intended to be, should we continue with 50/50 payouts or is it time to switch back to 100% power up? I don't well enough understand how that trend works. I do trust your thoughts on this and want the most "bang for my buck". :)
The best way to explain is (and forgive me for looking in your wallet) you have 9,761 STEEM (though in power). Now let's say if someone offered you $9,761 for your account would you sell? If not. $19,761? If not. $29,761? If not. $39,761. ...... that is the best way to explain it after stripping out all the nuts and bolts. Hope this helps. Stephen
Hey Stephen,
Thanks for the extract.
I'm not the most math inclined individual, but supply/demand is a pretty simple concept to grasp.
This is exactly what we're seeing and it's reflected in the recent rise in price at previous resistance turned support on the chart:
It appears we are seeing the same thing. The previous Resistance is now the Support..!! I could not agree more. Stephen
The self fulfilling prophecy of support/resistance on show ;)
Where do you host your TradingView charts to post them here? I just went to copy the URL of the snapshot I made over there and it didn't give me a jpg file. So instead I saved it as an image and then uploaded to Twitter where I could copy the url and use it here. Do you have a better solution?
Now that the excess rewards are going down, and users are learning that they have to be careful with their new voting power... it feels like a sudden switch has happened where supply is way down and demand is back up. I'm with you, the price looks like it could go up again soon.
were on 9,5% inflation p.a. this is nothing in crypto currently.
Great chart it looks like steem is going to see a bottom at around 1,70$. There is also a new update on the plattform coming out in two months which will also help to attract new members and investors. So get ready guys for a nice upmove...now is the time to invest!!!
can you tell more about this update?
Shared on twitter. Stephen
How can I see a bigger, up close and personal view of that chart?
Interesting article! I posted a similar question yesterday, but am still waiting for a technical answer... https://steemit.com/steemit/@ravedave/is-there-anybody-that-can-explain-to-me-clearly-which-factors-influence-the-price-of-1-steem-and-why
You are right buy I have a question a few of my friends are still waiting to open a new Steem account, but they have not received the confirmation. That is because there is no more Steem to create those accounts? And the waiting list is huge? If that’s so the demand is more than it showed on the chart of your post no? And if I am correct, why does the steem price does not rocket up.? @stephenkendal
I didnt noticed. Its good to have you here, thats why i follow you XD
So we are looking at a moon shot?!
thanks for sharing
Cool website. I just checked it out. steemwhales.com
cool. I checked that website. Thanks for the info.
Yes, definitely Stephen. And it's a simple but absolutely critical economic principal that you have highlighted for any budding investors out there. Supply & Demand
I have also been recruiting quite hard and am noticing accounts taking a long time to be approved. This indicates to me we are about to see a huge influx of Steemians.
Cheers,
Fish
Will put on my astronaut gear, preparing for take of.. just Need Some refuling
thanks for sharing
It's a useful post for all
Thanks for sharing this info mate! Upvoted
Interesting data.
This is true... This could mean price should raise... Also if the users keeps growing, there will even be more demand of steem, and price should raise even more... I have read somewhere that they are planing to burn steem in order to make the price go even higher...
The recent rise in new steemit-accounts will also lead to a demand, the more accounts the harder it gets to achieve a significant amount of steempower and a little bit influence. Impatient people like me power up then.
With all these new users joining most people are gaining rewards and holding their steem power or steem dollars in the hope the price goes up.
This will intern drive the demand down making everything worse for everyone.