Today , Tuesday 19 Dec 2017 the price of Steem is up 13% at $2.90, and looking like it wants to push higher.
It's one of the top performing crypto-currencies over the last few days.
Here is my analysis of what is causing this and the future price forecast.
The most likely reason for the rise in Steem price is the arrival of investors looking for more digital assets so that they do not hold only bitcoin.
This rise in the number of investors is accompanied by a large rise in the number of daily Steemit users, as documented in this post by @penguinpablo https://steemit.com/steemit/@penguinpablo/daily-steem-stats-report-steem-at-usd3-25-everything-is-rising
Smart investors want to divesify their portfolio across more than one crypto-currency.
Steem is a good candidate for adding to a portfolio, because it has a strong use-case which is well established and growing.
Smart investors want to hold a crypto-currency which will still be standing even if most fail. The rapidly growing Steemit user base gives a feeling that is here to stay.
It is also attractive to digital asset investors as a style diversification. Most other plausible crypto-currencies claim money transfer or savings features, whilst steem can add curation features.
Steem seems better value than bitcoin. Steem has a much smaller price than bitcoin. It's at an affordable price for even the smallest investor.
Steem has a small market cap, of just 780 million dollars, compared to bitcoin's $320 billion. Bitcoin is 410 times bigger. The small market cap means that only a small number of bitcoin investors need to diversify into Steem to give the steem price a large percentage boost.
If I am correct about what is happening, it is reasonable to assume that Steem will ultimately be 10% to 20% of a typical digital assets portfolio.
Even if we have no future price increases in bitcoin, that points to a steem price of well over $200, or 60X today’s price.
How fast will the steem price increase from here?
It’s impossible to call these things in the speeded up crypto world. If I was to hazard a guess, I will say it will do the next 10X faster than bitcoin did the last 10X. In other words we will be looking at $30+ within a few months. We already saw a price above $3 earlier today. It would not surprise me if we were to see the price more than double before Christmas, to around $6.
Hard Porn Fork
Lastly, Steem may get a boost from a hard fork where every Steem holder ends up with Steemy-porn tokens. A porn site is thinking of copying the entire Steemit blockchain as-is to get a massive "user" base on day one. You can read about it here: https://steemit.com/steem/@taskmaster4450/holy-s-t-steem-hardfork-at-block-18-500-that-is-two-weeks
Please do not interpret the above as investment advice. Investing in crypto-currencies is speculative, and you may lose the lot. Does your spouse approve of what you are doing? if not - then don't risk it.
We have the 34th position in the market. That leaves us evidence that the steem will be a very strong currency in the future. currently it is a coin that smiles, even to small investors with little capital. everyone can enter the game.
the part that I do not like, is that they associate this project as good as it is steemit, with the porn industry. if we find stupid users putting trash in steemit, imagine now if that materializes
Announcing of invitation principles in.
Think twice before writing spam comments. https://steemit.com/steemit/@miti/newcomers-minnows-and-spammers-this-post-will-save-your-reputation
I was about to report him to steemcleaners and noticed that he is actually a good guy who faced the wrath of some whales. The comment looks spammy. But he's not a spammer. Please take a look: https://steemit.com/@garudi/comments
Thank you. For information. @garufi, I'm sorry if I offended you.
Hello friend, it seems to me that the steem will have a good ancestry before January 1st, it is good to invest in this cryptocurrency now, both to generate sbd and for the gains to change to Btc, and as you say, everyone is free to do his investments, and more if the spouse approves it, and mine approves it 100 percent hahaha. Greetings, good friend.
How fast will the steem price increase from here?
I am looking for a full BTC retrace, lets say 6-14 months realistically speaking before Alt coins break out from under the IRON BTC horse and start the next great Alt coin retrace of 2019 ;p
Fantastic post, have a good week sweissclive!
Looks like the retrace is now ;p
Have you considered the potentially artificial inflation to Steem's price by the SBD price pump? If SBD is being pumped artificially, prompting many to buy Steem to power up constantly, I see this as a large potential driver of the volume/escalation lately. Not a lot of Steem is traded on the markets relative to most other coins/tokens, so I think there could be some substantial impact from users eagerly/constantly using the internal market to swap for Steem at the 4-6x price break... I know that this has been me for the last 2 weeks. In turn, multiplied by many Steemians, it can blow up the buying pressure on a relatively small market in the first place.
Hope this is all irrelevant, but I think it's possible. Thanks for giving us some moonshot numbers to dream about, and backing it up.
Yes @steemmatt you are right. With SBD now worth $9.77, there are going to be plenty who find it a good time to switch into Steem. However that does not detract from the fact that Steem has a utilty value of its own in terms of curation power. That’s what gives it a value.
The recent price move may be the catalyst to attract the investment community.
A downside to steem is the limited number of places you can buy or sell it. You can trade here through the wallet, or you can trade on Bittrex - which has the most volume, or you can trade on bitshares. The spread on bittrex is less than 1% so that’s the place to go if you are in a hurry. On the other hand, bitshares has up to 9% spread which is great if you like to place a limit and can be patient.
I think this is all tied to the Bitcoin Futures games today and the Bitcoin network saga as Bitcoin Cash tries to manipulate/force itself on the market.
Interesting read. I wonder, is it wise to invest ab. 100 bucks in to steem? As a christmas gift for myself.
I'd suggest you make more posts and you can make more then $100 without investing cos Steem and SBD are making waves to the top.
That would be very dangerous. Instead of doubling in the next 5 days it might halve. I would not gamble the 100 Bucks you need for Xmas.
OMG, I can't believe the last part of your article even with the reference added :)) it seems that there are good news for Steem!
It is just fantastic news, right? I for one have been smiling like I needed medication for three days straight.
On a serious note, I don't see why we wont hit the $10 valuation in a month, I realize chart reading is some sort of nostradamian art, but at the same time I don't think its a risky thing to say.
;)
this month, will be a good month, to save Steem.
there is a possibility, steem will, increase multiplied in next year.
no one knows what will happened in 2018 :)
If this keeps up long-term, Steem may allow a lot of us to retire young. Maybe it’s time to put some $$$ into Steem right now.
I’m doing great with EOS at the moment. If this crypto boom keeps up, I might be mortgage free by the summer!
I have invested $300 as a Hanuka gift for my wife.
First candle on the daily to open/close above the 50 day moving average 😉 That's why it's picked up momentum. Charts always tell the story and traders are on it like hornets - which helps us!
Hi @swisseclive,
you know what actually worries me the most? The thought that when price will go up, people will start to sell en masse. Let's not forget of people who are here in steemit, who act like mercenaries for a immediate return instead to think long-term.
@miti, don’t worry. It won’t happen like that. It never has. Bull markets climb walls of worry and weakest holders sell into the rise. At the same time armies of investors are chasing the price because they think they would like to buy at last week’s price. Nothing ever went down because it went up, although it is a common misconception that asset prices are subject to the laws of gravity.
When it comes to investing the biggest mistake people make is to think that the old price was the correct one and that the new price is a temporary aberration which will be corrected due to some kind of “reversion to the mean” theory.
Thanks @swissclive, your words are so comforting. We'll see what will happen next.
Very interesting article. I agree with almost everything. 100% support the fact that Steem than Bitcoin. The only thing I disagree with, is that many investors have in their portfolio Steem. If this were so, the capitalization would be much more than 800 million.
I read the comments, as I did not want to repeat the repetitive questions. And I really liked your answer about why you should not be afraid of a massive decrease in SP. With your permission, I will quote it.
@miti, don’t worry. It won’t happen like that. It never has. Bull markets climb walls of worry and weakest holders sell into the rise. At the same time armies of investors are chasing the price because they think they would like to buy at last week’s price. Nothing ever went down because it went up, although it is a common misconception that asset prices are subject to the laws of gravity.
When it comes to investing the biggest mistake people make is to think that the old price was the correct one and that the new price is a temporary aberration which will be corrected due to some kind of “reversion to the mean” theory.
Good luck to you and good.
Very good analysis. From your post I can imagine, what should we hold now, so that can be enjoyed in the future. Thank you very much for useful knowledge @swissclive.
3.75$ as I type this