Why the massive price drops in steem doesn't bother me
Sure the price of steem is lower than it has been for a long time. Sure I may have bought some of my steem when it was $2+. Of course I wish the price of steem was up rather than down, but steem is not the same as other currencies.
Price doesn't matter as much as you think
Unless you are a massive whale just sitting on 1000s of steempower, then the price matters less than you might think. This is because steemit is an active earning platform, not a passive earning platform. You earn by curating, posting, commenting, and even taking advantage of businesses like @bellyrubbank. Active and smart users can outpace almost any price drop by just putting in more work.
Inflation is decreasing. Less power downs.
I believe the current inflation rate is only 9.5%, while it used to be 100%. So short term maybe the price will drop, but as more users join, there will less steem for each user. This will cause a direct increase in the steem price. (Hopefully). If we can get as many users as Reddit, there may be less than 10 steem per user. With whales holding most of it, steem will be scarce and the price will increase dramticly. I know that becoming as big as Reddit is a tall order, but where money goes, humans will follow. Its our nature to want to be rewarded. So while a current supply of 262,197,165 STEEM may seem like a lot, its really not. In addition, less users are powering down and most whales are holding massive amounts of steempower.
ICOs and SMTs
@ned does a much better job than I could explaining why SMTs and ICOs will increase the price of steem, so I will link his video here.
Look forward to the future
The price of steem is down. However, over time the price will increase. (At least im betting my money that it will) So hold that steempower, buy more, and do not sell. You may regret it in the future. :)
Your friendly Neighborhood Steemian - @edolo
I'm confused...New to steem, new to crypto currency. This chart, which I did just find online doesn't correlate to Steemdollar.com at all. Steemdollar.com has Steem RIGHT NOW trading at about a dollar and was up around 1.10 a few hours ago. What am I missing?
this chart is from coinmarketcap. I have never used steemdollar.com. The chart is correct, if you look at the steem market the price was also $.86 at the time of posting.
my guess is that steemdollar.com is faulty. Unless you are confused about SBD vs Steem.
Thank you for the reply. Do these sites get their information from other places, or? I don't understand the huge discrepancies, and 14 cents from a dollar is pretty huge. I do guess that I'll not be checking steemdollar.com though.
Honestly, I don't even need to look, my account is only worth about 3 bucks. I'm just curious. Thanks again!!
coinmarketcap.com is well known and considered the best by many. I am not sure how they get their information. I do know however that coinmarketcap is almost always the same as the internal steem market.
Thanks again @edolo, I'm sure that I've probably got steem values of differing "currencies" confused.
goodluck ;)
I would have to argue that whenever a price drops, and drops steadily, there is concern. I am a believer in Steem and Steemit and know there is a future here. But I would like to see some analysis as to why the Steem value has declined so much if demand is increasing.
Looks like all altcoins including STEEM are dropping right now regardless of anything because everyone's jumping on the Bitcoin Bull.
Happens everytime money flows to BTC. Check out the BTC market cap at over $110B!
I agree yes, if the price drops a ton there is cause for concern. The demand is not increasing right now. Hence the decrease in price. However, long term as more users join and the inflation rate decreases the price should go up. Also ICOs and SMTs should also increase the price.
Hypothetically speaking, I agree. My question though is why Steem demand is flat and not increasing. When adoption comes to a halt, there should be concern. My guess is that Steemit is way to complex for the average individual to grasp and UI and function problems help to keep people from staying active on the platform.
yeah I see your point. But UI and function problems can and will be overcome. Lack of ease-of-use has never stopped any crypto that I know of. No cypto (that I know of) is easy to understand or use, there is a learning curve for all of them.
I suppose things will get better, they must. But with a learning curve so steep, the average Joe gives up too early. I read somewhere that there are many inactive accounts, and growing.
I need more dollars to buy steem!!! anything a penny a dime...
lol.
theres your penny.
thank you!! xD
hey i was wonder by powering up (steem power) are you protected by inflation? most of these questions are answered last year which i believe is no longer relevant... anyone?
not really. I believe you earn a tiny amount of steempower less than 5%. In theory you are protected if you user your steem for curation or delegate it to minnowbooster.
In other words, powering up is not enough to counter the current 9.5% inflation.
oh so sad news..steem price is drop
Yes its sad, but as my post states, there is no cause for concern.
ok @edolo
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Thanks for sharing @edolo, that was super informative!
your very welcome.
thank you for share @edolo
your welcome
dejo mi voto ! :D
Thanks for advice whe all hope you right 🙂🙏