New Theory On STEEM Dollar Demand
Today I saw STEEM Dollars up about 15% and for the 1000th time I said to myself, "Who the hell is buying this stuff????" Then I looked at the trending page and I saw the following post.
https://steemit.com/blog/@yallapapi/how-to-stop-being-such-a-loser
Pretty funny to say the least but for a politically correct place like the STEEM blockchain it wouldn't likely hit the trending page without purchased votes. I looked at that users wallet and they don't have a real fat account as far as STEEM Power is concerned and then I started thinking maybe some people aren't waiting to get SBD from earnings but are actually buying them and then using their purchased SBD to promote their posts. There is a ton of volume coming from Korea so maybe they are using a lot of upvote bots.
https://steemit.com/trending/kr
Also the cn tag is getting popular from China.
https://steemit.com/trending/cn
Both have some upvote bot usage but to be honest I think it is across the board from all parts of the world. People want to try the upvote bots to at least see how it works out and if it is profitable. If they don't have a lot of earnings they perhaps purchase some SBD with other crypto to feed the bots. Then there are all the people buying it out there on exchanges that don't know what they are buying.
Again this is just a theory as to why SBD is still lofted up like it is. I don't know how long that can last overall. I'm not opposed to the upvote bots but I think more and more this platform will become about purchasing votes instead of organically getting them. I almost think some people have gotten to a point where instead of curating content with their power they opt to delegate to bots or run their own bots so it essentially becomes, "you can't earn my vote, you have to buy it."
What do you guys think? Do you think people pumping posts is keeping the SBD up higher than a dollar for at least longer than it would have because of the rise of the upvote bots?
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You miss one of the biggest point, it has a great technical setup, and most of the trading comes from Asian community...Alot of these traders also use it as a hedging/ tracking tool as its been moving with BTC quite well... It also one of the low circulating coins but that picture is quickly changing and SBD/KRW gives these traders liquidity that they can move in and out of trades quickly....The negative attitude towards SBD comes primarily from speculators on the Steem blockchain who are large holders of Steem and wish that price of Steem be higher and SBD is pegged towards 1 USD which is natural feeling I guess...As long as the Asian community is with us and the technical setup presents an opportunity expect SBD to spike and spike hard as these Asian whales tend to bid and bid very large... We also need a positive tone towards the Asian community here on Steem much of Steem trading volumes comes primarily from that community everyone else are primarily feeders myself included in the bracket...
Upvoted for visibility
I felt that initially they were able to pump it up possibly in an attempt to have STEEM prices follow as more people bought STEEM with their SBD and powered up but then it got way out of wack but now I would think enough people got burned with SBD falling that they would want to stay away from it when it is above a dollar. But I don't know.
Keep an eye on the SBD/KRW pair, if the volume is picking up its a good sign, also make sense to have someone from that community as a good friend, great arbit opportunity would present itself...We love to see a higher Steem price but that would largely depend on what SMT and Communities come with as Steem circulating supply is quite large, it easily to ride up SBD ladder and use it to get more Steem thereby gradually bringing up the price of Steem to catch in value as it is a small circulating coin... We have to see how it plays out
Excellent analysis, especially the stuff about quick easy hedging volume . . . I shall try and keep an eye on SBD/KRW volume. What's the best way to do this do you think?
Cg
The best way is to look at the Steem/KRW pair on Upbit and the SBD/KRW pair on Upbit, GoPax also has some nice trading prices but the volume isn't as large as Upbit...Quite frankly, if SBD was endorse and supported by the community, we can easily see a 25 USD value of SBD base on its circulating supply as the demand is there among the Asian community, Steem holders can then use the high price of SBD to buy Steem which would gradually increase the price of Steem, SBD holds the key in terms of price stability and appreciation...Bitcoin currently is going through this phase as shown in the picture below
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This is SBD price action
The market moves after BTC moves, so we have to see how this spans out but right now its at some critical levels
Very good info, thank you!
How can we support is? I support and endorse it, I love SBD :-) Seriously though, what can be done?
Thanks again for this info, really appreciated :-)
Cg
Its really for the Witnesses to give it its stamp of approval, let it run and create the kind of environment where its stated that SBD would be allowed to run and market dynamics would determine its value and witnesses would not go out of its way to beat down the price....So have to encourage folks to hodler as well and generally create a positive environment and traders can work with SBD of a floor of 1 USD
I think some use it to trade especially in Korea after the Korean exchange Upbit had gone live the SBD didn't get down much after that. I tthink SBD will remain higher than its pegged price as more koreans and people use SBD to trade.
I just wonder if they really know that it is supposed to be pegged to the US Dollar.
As far as I'm concerned, Buying upvotes has spoilt steemit.
Guys who are supposed to be upvoting so as to get curation rewards are not doing so anymore.
I'm not against buying votes because it was meant for getting attention gaining visibility but right now, the newbies are the ones suffering the lack of attention. They didn't come in with money so they can't bid for votes.
Imagine a Steemit where 90% of users sell their votes! Then who will but the votes?
Yeah it is a good point. If it suddenly becomes so much more profitable to sell the votes than for people to upvote for curation suddenly the whole site could become one big paid promotion type of a thing. That is mainly what the trending page has become in a lot of ways.
yo, did you hear about the Steem Creators Conference in Vegas April 13-15?
www.steemcreators.com
I'm headed out and so are a few other steemians. Should be fun.
I actually just found out about it today but Im now going to be able to go. It looks awesome though with the lineup of events.
Currently the SBD print rate is down to 95%, so a small part of the author rewards are payed in STEEM instead of SBD. Maybe this caused the increase.
perhaps. Like it choked the supply off slightly.
Agree, I think buying upvotes is similar to buying ads on Facebook or Twitter with the difference that ads are not marked as "sponsored posts" on steemit, but the effect is that ads are a source of money for Steemit, true for Facebook and also true for Steemit. So I am not against ads btw but would like to see paid upvoted posts labeled as "sponsored".
Well Steemit Inc doesn't really benefit like Facebook or Twitter. It is the community members who are running the upvote bots who are profiting primarily. That would be interesting if they did have "Sponsored" by them though.
Personally I don't think this 'bot' is actually good for steemit. Reason being that when I was introduced to steemit by @jeni , this is exactly what she told me nd I'll qoute her "steemit is not FB, so you've gotta build your post and make it have rich and quality content before you can get attention there" ...but I think with 'bot' , you can post anything, good content or not and buy votes for your post.... Simple .... And like my boss @samstickkz said, it's we newbies that suffer
Yeah newer users certainly suffer with it and have a hard time getting some good votes for sure.
I think there's very little purchasing for use, most of its interest is in trading. Look at the size of the total reward pool, how much is printed, compared to how much gets traded on Upbit daily. Bought votes aren't that big a % of the total votes in the system, it's mostly whale votes.
it is strange to me that people are trying to trade it that much though being above $1. I think one of the things that gets blurry is when some of the people use their primary account as the bot as well like @jerrybanfield I don't know if he organically votes for anything anymore at this point.
It is a messed up situation. With the debt ratio cap coming into place more STEEM and less SBD is created. This then devalues STEEM and makes SBD more rare. In the currently market conditions I foresee SBD rising again. For some reason the market puts a lot of value in SBD. This could be because of vot bots .. likely is. But vote bots also take STEEM. I think there is a psychological barrier for spending STEEM. If people get STEEM they may tend to power up but when they get SBD they want to buy votes. Personally that is what I have tended to do. I have traded the majority of my SBD to STEEM when I'm getting a high perceived high premium. I.E 110%-120% STEEM for my SBD.
It is an interesting psychology on here for sure.
Thanks for sharing that post from @yallapapi one of the most entertaining things I've read in a while, I dig the ranting yet comical style lol.
Yeah it is a pretty interesting writing style. It sounds like he is living the playboy lifestyle over there in Thailand. LOL
Yeah I dig the I'm gonna do me and be me and fuck whatever anyone thinks about it attitude.