Hello again my fellow Steemians. In this blog I will discuss my five top reasons why I currently believe Steem is highly undervalued.
In my last post https://steemit.com/money/@hedge-x/why-following-a-crypto-index-will-make-you-bank-over-the-next-few-years-steem-happens-to-be-top-holding
Dated Sept. 2016 (9 months ago) I discussed why investing into a crypto index will make you bank over the coming years. Since then we have seen a about a 20 fold increase from the time of writing. As you can probably tell I do not post often but when I do I put a lot of thought in behind it. BTW I am not a blogger but crypto investor and established Entrepreneur. So excuse my grammar - I am not here to teach English classes but give my investing opinion which has a successfully established track record in crypto investing over the last 4 years.
One more note: I am not giving you investment advice. This my opinion only. Let's get to it.
Why Steem is highly undervalued?
Reason #1
Major Steem DAPPS are launching over next few months.
These include a few major ones that I know about but there is many more that are off the radar. Remember Steem runs on open source software anyone can build on increasing its network effects.
Zapple - The Steempowered Twitter. Enables micro blogging.
Steepshot - Steem like Instagram
ChainBB - Steempowered forums. Enables communities to form around certain topics. Similar to Reddit if you have ever been to r/ bitcoin or r/ ethtrader you know this is very powerful. Imagine when you layer Steem currency on top of it for writing quality post instead of Reddit Gold which basically worthless.
The big point I want to make here is that the way Steem is currently set up is just one app and that www.steemit.com.
While Steemit has attracted over 300,000 users and a daily active user count of 25,000 this is not the Steem we will see over the next year. The way Steem is currently set-up is not that user friendly yet. Steemit has been improving but the big multi functional Steem is just now starting to arrive.
Let me breif you just for a moment why this moment is gigantic for Steem right now. I will make a direct comparison to my Ethereum investment last year.
If you go back a study what was going on with ETH was a very low price of $6 in Dec. with a market cap of $600 million. Recently, it touched $420 with market cap approaching Bitcoin. Now things have cooled off a bit with consolidation in the upper 200's but still is very impressive none the least. A 40X return in under 8 months - insane.
Now I am seeing the same type of eco-system approaching Steem in the next few months that will lead to exponential growth similar to what we saw in Ethereum. Steem DAPPS will make Steem 100 times more user friendly and useable for your average person and this what we need for mass adoption of the Steem blockchain which will put Steem tokens
in high demand; therefore exponentially increasing the price in a 10-20X multiple over the next year.
Reason #2
EOS
EOS release will draw in major attention to the Steem Blockchain. The last price of EOS was at $5 and #7 top crypto on CMC. BTW Dan is the creator of Steem, Bitshares and now EOS. The volume yesterday approached just under Bitcoin's volume in total. This alone is enough to be hoarding your Steem Power as these are mostly Chinese and Korean investors driving up EOS price. Many of them are just learning about Steemit through buying EOS this week. Get ready. When the pump starts it will be very intense like what we are seeing in EOS and ETH just a few months ago.
Reason #3
Valuation (get ahead of the curve)
Steem is currently valued at #16 on CMC with a market cap of $388 million. While Steem recently touched highs at $2.80 from a .07 cents low in March. Currently at $1.64 this shows a healthy correction/consolidation and not a crash back down. Now is the perfect time to be accumulating Steem.
Keep in mind Steem has the highest amount of users behind Bitcoin and Ethereum with transactional volumes on Steem blockchain passing 700k, making Steem the #1 blockchain in world for daily number of transactions. All this means Steem is incredibly undervalued and should be sitting in top 5 crypto currencies now
Lets take for example ETC that has hardly any transactional volume or any Dapp eco-system sitting at #5 with $1.7 Billion market cap. Compare Steem adoption to that and you see very fast where we are headed and much much further when the market finally realizes how great of a deal Steem is.
Reason #4
Steem was first mover in Social Blockchains.
Just as Bitcoin has dominated the market being the world's first peer to peer digital currency, so does Steem have the same advantage with decentralized Social Media. As with any first mover network effects are strong.
What does this mean longterm for Steem? This means Steem carries a big advantage over new incumbents like Ethereum based Akasha. They will have to develop there user base up like Steem and that takes time. Steem already has a proven product that is highly scalable. It could be another year or two before Ethereum gets Casper and sharding for high scalability like Steem can already do. I am not sure how the user experience will be on Akasha but my guess is probably not so well since it runs on top of Ethereum. With a Social DAPP you need high performance right off the bat. Imgine waiting a few minutes to get your Steem upvote confirmed and paying 10 cents to do it? Its different if you wanna do a service on lets say an Ethereum DAPP like Swarm City. For example, you paying for a ride share like Uber, you just need one transaction and you are finished.
Reason #5
Steem is coming out of Beta.
If you follow Steem in github you can see beta has been removed. Also, the team has talked about talking it out of beta once the time is right. The next step is taking Steem to market.
Yes, that's right Steem is highest transactional blockchain in world with the third largest amount of users of all cryptos. All this achieved while still in beta.
This wraps up my 5 top reasons why Steem is highly undervalued.
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Also, I wanted to explain what the picture means above "you are here".
This is a classic S-curve. All tech stocks like Facebook and Twitter went through this phases of growth. I currently have collected enough data and evidence that leads me to believe Steem is currently in the point just before exponential growth happens. This right before you see the vertical line in chart. This line in tech stocks typically last about 8 years after critical mass point is hit and just about where I think we are now with Steem.
Have a great day Steemians! Follow me for new upcoming post about investing into the crypto space. I constantly make comments btw. Hedge-x
You forgot Busy.org an eSteem the mobile app that are already up and running. The next year is going to be great for the community. I stopped powering down because I believe the next run up is going to make this one look like chump change.
Yes, those too. I did my post on eSteem today. I am having hard time why the Asian exchanges have not added Steem yet? A lot of the new traffic is coming from Asia. Maybe they will soon. I should have mentioned that in the post. I think you right about the last run being like chump change. It would not surprise to see 1 million users within 1 years time and a 5 billion market cap.
Thanks for this overview. I'm investing my time in steemit (and very soon my money).
Steem has some of the highest potential in the entire blockchain space for mass adoption. I can't guarantee it will happen but it very likely. Its the only crypto that requires no investment upfront, just time blogging. For me I don't have the time so much so I like to just stay invested.
Thanks for your reply.
I don't have much time or money... but from the reading I've been doing over the last couple weeks it looks like steem would probably be a good investment of both the time and money I do have.
I appreciate your analysis. I followed you and look forward to reading more of what you have to say.
I did the same. Welcome to Steem!
Hello @hedge-x
This story made it to the ღ #steempearls of @tabea . Check it out at https://steemit.com/steempearls/@tabea/steempearls-16
Been considering buying some steem but your post definitely convinced me. Thanks for the info and I'll definitely be hodling some steem long term.
Absolutely, perfect time to be very bullish on Steem now. These Steem DAPPS will make Steem go viral and this has not been priced in yet. Only a small group really understand how different Steem will be by next year. I am fairly certain Steemit will not be the main app. I think you will see several large popular apps on running on Steem by this time next year with at a million registered users.
Fantastic article! I always think how good it is for people who use public transport. To be able to have an app on your phone where your sitting on a bus or a train and making money. Possibly even being able to cover your transport fee before the ride is even finished! We are already doing well climbing the Google search engine rankings, this persistant activity here will make the whole world take note!
I do wish Steemit could be really user friendly though and if they are coming out of Beta soon then we only really want to be full on marketing when we have a very newbie friendly interface. Plus there are still many issues with the reward pool being drained that I hope can get sorted. Basically because we are always changing with hard forks we don't know our own identity fully yet, and I don't know if we ever will but I am most certianly optimistic we can get to a point where we are a well oiled functional and marketing machine!
Exactly, well said.
Reason #6: The STEEM/BTC chart looks really good right now. It's about to pop off!
Yes, and the charts look good too. I am a macro investor so I don't focus on that but the short term looks good as well. I am after 20X to 100X returns at least. Ether was my best one to date.
He doesn't always write a blog article, but when he does, it is golden.
The comparisons with Ethereum a year ago, and where Steem is today are insightful and a perspective I had not considered.
I was aware of the Dapps being built on Steemit, but someone had not considered the usability increase they would bring and specifically the clientele that would follow for Steemit.
Appreciate the wise discernment and you putting it together for our education.
Great overview :) Very happy you wrote this!
"He who invest in Steem have bright future."
-Confucius
Yeah the stars are aligning for Steem. Especially at todays price and seeing what's coming.
"Steem is more important than facebook." -Albert Einstein
lol :)
Very wise words :)
Stay woke. Stay bullish. Stay crypto. INVEST AND HODL STEEM.
Steem on!
Steem on!!!
every cryptocurrency face market challenges. steem price will take a boost very soon just wait and watch.
Inspiring. Glad I'm on board this hype train and it cost me no money - just numerous disapproving glances from my family.
Cryptocurrencies expose the lack of understanding what really is money. Once people get past money has to be a Yen or a USD the mind starts to open a bit.
I mean it took a lot of family time spent not with the family to the point they noticed)
Marvelous!
It motivated me to invest myself even more in Steemit, I was wondering how long it will last, if everything was going to crash. But your post gave me an incredibly comfort.
Thank you.
Steem is deffo a great investment at the moment i didnt know dan was the leader of eos and steem as well thanks :)
Thanks I have a much better understanding of steem now!
Just bought a bunch more on tonights dip. Great time to be alive.
Steem is undervalued because most people in the space think its community is horrible, because it's too self congratulatory. I have no arguments against it because from my personal experience here, it's true to a large extent. The money incentive always seem attract crappy content and sycophants. We need some introspection.
That said, price of Steem in the short term will obviously remain unaffected by these subtleties, as the knowledge of these sort of issues is low, outside of steemit (and to a significant fraction of steemit as well)
In the long term though, I'd say a 40-60 chance for Steem really breaking out
Intsersting points, your graph neglects to include last years highs, im sure its been explained before but what cause the huge drop price
I am talking about 5 - 7 years S-curve growth not just from last year. Zooming out in a few years this will look like a little bump. Remember DAO hack last year in Ethereum. Zoom out to now. Steem will mostly likely be something similar in the charts. Don't forget last year there was high inflation if you were not holding it in Steem Power. Those who held in SP whole time have made good money investing if they were buying and holding over time. Not as good as some other coins but Steem is just 1 year old and still in beta.
Ah thanks! always power up
Really curious what will happen with the price when it's out of beta.
Some good info here :) I think steem will go up big in the next 12 months.
Steem to STRONG!
What is the value of a regular blog post?
I see many posts on Steemit and I can't justify their value is hundreds of dollars. Where is the value coming from?
Stick around long enough and you'll find out. Just kidding. The value comes from the Steem Blockchain. Basically there's 9% inflation of new Steem issued per year that goes into a rewards pool. Every time you upvote it disrupts a small portion of that to the blogger you felt deserved it. The market decides the price of Steem. The more adoption the greater demand for Steem token and in the theory at least the greater the Steem price.
Then I feel like it's overvalued. There are many posts at Steemit I don't think it'd worth that much if your readers were paying you directly for your writing.
Kardashians get b/t $30K-$60K per instagram post. An top Steem blogger earning $1000-$2000 per post is reasonable to me but that's for the market to decide.
I assume they're paid for the advertisement. What's the source of value for Steemit?
Demand for the steem token. The same way BTC has value. The more users the more demand, which leads to more value since supply is limited.
Good question.
Interesting post. I was about to post a similair thread. The future is in blockchain. The issues is that people don't seem to care about the Trustworthiness of the current cryptos. This also happened in the internet boom. Do you know this interesting site? https://www.coincheckup.com. The site lets you check all there is to know about the team, product, communication transparency, advisors and investment statistics on every crypto. On: https://www.coincheckup.com/coins/Steem#analysis To see the: Steem Research report
Cool article, just upvoted you.
If you share my interest in science and investment opportunities that come along with it, check out my blog.
Best regards
Alex
So in fact it depends on all those new features and functions to arrive in time to improve steemit and make it more user friendly. At the moment steemit is just a simple looking blogging platform with a difficult to understand payment and voting system. And the content is mainly about cryptos. So not very attractive for the mainstream at the moment. But thanks for Your interesting read! Will check out the DAPPS You mentioned to learn more about them.
Oh this a great read indeed. I know that i don't have money to invest (as of now), but seems that i have the time. Not much knowledgeable in techie stuff and jargons, but I can definitely see that Steem will definitely pop off.
Much love from the Philippines. Keep the posts flowing.
Keep on Steemin'! :)
(you gained a new follower, and an upvote too.)
I have been watching yours posts and comments @hedge-x. I would like to work with you on this project I am offering you an invitation of free ongoing access.
You have been invited to STEEM (SBD) Trading Bot Growth Hack Project, https://steemit.com/bitcoin/@jordanlindsey/i-think-i-ve-built-something-incredible
I totally agree, this is such an amazing platform its only a matter of time before we see steem into double digits. I would like to see more articles from you, really enjoyed this one. Upvoted,followed and resteemed:)
I have just joined Steemit.com and I am in no way a crypto currency expert.
Indeed I first heard about Steemit from a crypto-related video and registered here just as an experiment so to say. But I was totally astonished to see such an active community basically working their butts off publishing so much quality content. Indeed, there is an issue that for every one quality post you get like 10 or 20 useless ones, but it is still good!
People are so responsive here, there is so much to read and learn. Only today I spent over two hours here basically reading, reading and reading.
Just like you I do believe Steemit has a bright future ahead.
I also believe we will see 10$ Soon! Thanks a lot for the support and expect me to regularly back you up ;)
I like you!
@hedge-x this is definitely a well thought out article that made me feel even more certain of the purchase that I made in Steem recently. This article was so good that you resold me on the idea of Steemit, lol! Seriously!
arent they also working on a video platform?
what i am also intererest in if it is a good thing to create so many cryptos? He sure has experience but why not making one like really your baby and keep with it?
I sent people to this post in my last post! I hope they notice you and your advice. Timing is great!
Sorry for my ignorance, how can I charge in this app? By paypal no? How do I do?
Just stumbled across your post I am on Steemit just a month and new to crypto so am soaking up all info I can. I found your article very helpful and encouraging. Many thanks!!
This is a wonderful post. I used you and your post as example in my latest blog post of why people should invest in steem -pls feel free to see it. Thanks for your good work here.
sad i did not see this post in time to up vote. great post!
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