Steem has been on a downtrend for two months now.
This basically means that there are currently more people selling their Steem than people willing to buy Steem. How is that any good?
Boom-bust
Markets tend to grow in boom-bust cycles. These cycles have to do with human emotions like greed and fear. People who are trying make a quick buck. This is why value of a stock or commodity does not increase linear over time but has large price swings. However, when you look at the long term the trend is upwards as long as the fundamentals are solid. While there is still a lot of room for improvement with regard to Steem, everyday the community is working together to expand this platform. New projects and idea's pop up all the time, like the recent release of Dtube(source). New problems will arise, yet over time they will also be solved. Every addition or problem solved adds to the fundamental value of the platform over time.
So not only is the falling price a natural process. Weak hands are currently selling their Steem and those who are buying the Steem are the strong hand that believe in the long term future of Steem. As more and more Steem flows from the weak hands to the strong hands, the strong hands gain more influence over the platform and are better able to guide its growth.
What to take from this?
The $$$ value of Steem does not matter that much in the short term. If you believe in Steem keep doing what you were doing, keep creating and curating. Over time the platform will grow and problems will be overcome. If Steem was already perfect today, there would also be little room for growth.
I am kinda hoping it goes lower so I can buy
Great post. I started on Steemit just after the bubble crashed and was still on it's way down. I payed attention the the historical trend I could see that it was on its way to stabilization. I figure Steem is big enough the stabilize right around the USD for a while, all of the crypto speculators are out of the system, and the traders will now buy and sell it agains the USD.
I have not looked at the stats for content creation but I suspect those have dropped off since late June/Early July when it seems thousands of people created accounts as they learned that it takes actual work to succeed here.
I am here for the long haul, building Steem Power and keeping it in the system as many of the best Steemians are.
Cheers,
@kellyjanderson
Thank you for this post! Exceptionally to the point, as I was pondering the red numbers all day. And, glancing at the left corner of my screen, I notice that it's dropped another penny to $1.11.
I agree that there is currently a lot of earn and burn going on. I suspect there are quite a few people buying the stock low (smart) and selling it just as it warms up enough before it begins to decline with a built-in stop loss...a sort of swing trading.
I am new to Steemit; and love the concept. I have a renewed energy for blogging; because of the potential to invest in stock; not to mention my love for writing, reading, interacting with a purpose beyond small talk.
Again, thanks for sharing this post. Anyone in a position to do so should take the opportunity to invest. Bitcoin is a clear example of what happens when people can't envision the long-term effect.
Peace!
I'm optimistic. Other social media companies really seem to be alienating their users and people are looking for something new, if Steemit keeps valuing free-expression I expect a lot more will continue to join us who want an open platform.
Yes I agree with you and due to the open source decentralised nature of Steemit it is highly unlikely free-expression will ever go away.
This is absolutely good for traders who wants to buy. Because it's value is very cheap now. I explained more detailed in my recent post.
https://steemit.com/steem/@stefen/steem-value-is-falling-down-but-still-it-s-a-happy-moment-for-traders-why
Definitely a good opportunity for investing when you believe Steem has a long term future :)
Thank you for sharing
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The price of the stem decreases because the stem has accumulated fewer people who buy than on the sell. Good information friend
that's interesting, thanks for the share.
I'm part of the movement to give Steem a distinction from other cryptos as a service platform. The developing product is a stronger basis, in my opinion, than just the agreed on value of Bitcoin.
Wise words.
Keep it low. I might be in crypto to make money, but I'm in Steem for the long run. I finally have a platform to express myself and have my efforts "voted" on by a rational community. And when Steemit its the mainstream...us early users will be the leaders of the pack.
I'm excited. Hoping to buy a bunch of steem :)
best statistics my friend juliank :)
Well said!