So I've only been actively using this platform for about a week now, so forgive me if I have some misconceptions about how Steem works as I am a newbie. This may have been covered before, or I might be totally off-base.
But when I look at the crypto markets, it's clear that we are in a bear market. Having said that, certain cryptos are performing better than others. Bitcoin fell from 20k and is currently trading at 5k (a 75% decline). Binance on the other hand is making new highs (a very rare exception). Most cryptos seem to be down 80-90%, but Steem is down over a whopping 95%, a clear laggard in the top cryptos of coinmarketcap.
I am wondering if this is due to the nature of Steem inflating itself, thus increasing the total Steem supply. Steem users are incentivized to try and duplicate as many Steem coins as they can without investing more fiat money, thus they find a way to exploit the system, thereby diluting Steem for everyone. Such a system seems like it is doomed to fail if incentives are going towards exploiting loopholes rather than contributing quality content.
I saw a YouTube video of a guy explaining how it might be a better system if we had to trade the Steem we earned through content generation for ad banners on our posts, which burn the Steem in the process to prevent currency dilution.
Again, I'm not sure if the logic is sound as I am relatively new to this space, but I am hoping for some comments that can educate me further on this topic.
Congratulations @tldrfinance! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :
You can view your badges on your Steem Board and compare to others on the Steem Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPVote for @Steemitboard as a witness to get one more award and increased upvotes!
I think you are right about a lot of things! A couple things I would add - bitcoin was at 3400 a few months ago - so it was also in the 80 - 90% decline category. Though it has since been showing a slight uptrend possibly indicating a start of a reversal in the market.
With Steem you are also very right! The only thing I would add though is that if we had a huge upswing in the market like in 2018, then the price of steem could go up along with it. Even though it is deflationary..most things seem to move when big upswings take place.
My tactic is to not put all of my eggs in one basket. I also write my articles on Publish0x. Readers can tip your article or you can earn from reading other articles. They pay in different ERC-20 tokens and are going to add different coins in future months.
https://www.publish0x.com/crypto-wellness/how-to-meditate-for-beginners-xdvyk?a=oBDbDJ5el2&tid=it
I believe it is the perfect time to slowly accumulate Steem and other coins. We are all so early it definitely isn’t a bad time to be a blogger!