Why is investing in Steem could be highly rewardable?

in #steem6 years ago (edited)

Steem is ranked around 50 In the CMC. Considering its utility and usage, it could easily be ranked within top 10. That means its potential price gain could be 10X. It means it is undervalued and reward vs risk ratio is relatively high. Now consider EOS, ranked 4 and TRON, ranked 8. How far can they go up in the ranking, probably none. They are fairly valued or overvalued considering their usage and current utility.

When BTC will rise, all coins will rise along with it. Steem will rise at higher rate than it peers. Now question is that the why is Steem undervalued. There could be couple of reasons and steem community and leaderships are trying to solve them.

It could be that it has relatively high inflation, however, LTC, DOGE, Cardaono, ETH has inflation rates close to Steem. Steem is not widely distributed. Other than BTC and LTC, Steem distribution is competitive or even better than EOS or TRON. Steem is not widely traded similar to EOS or TRON or even DOGE. It can change with introduction of low cost MIRA and more active effort from STINC or community. Steem is not marketed well or there are lots of misinformation out in the wild. With community reorganization and more active STINC, marketing campaigns can gain momentum sooner or later.

Now think that as a buying opportunity. If it already is ranked 10 or 15, which potential of gain will be limited and risk will be higher. It has problems and solutions are in the horizon. All that means Steem has better reward to risk ratio than its more established peers.

Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions.

steem_speed.jpg

Image sources: Most images are open sourced (e.g. Pixabay, Wikimedia etc.) with Creative common license. Some images are used with due courtesy to respected owners.

Thanks for reading.
@riseofth
Cryptominer since 2013, occasional trader and tech blogger

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This is a great valuation thought as many of the points are quite valid indeed. Considering that Steem and its stake are the fuel of the blockchain in order to engage, it has the potential to be scarce for future development and projects which coukd cauase the value to increase.

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