Steemit is collapsing!
Here is the chart of Steemit . It has lost 2/3 of its market value in about one month. Will it stay down forever? Nobody knows, however this will be an excellent test as to the true value and longevity of Steemit as a cryptocurrency. The truth is there are about 800 different cryptocurrencies and not all of them can survive. Why? Because they need investors to hold them up. If you have ever traded the stock market you have probably seen a few stocks go to zero.
Yes stocks can go to zero and so can currencies. The way Steemit is financed is the same way any stock is financed, through trading in the open market. If people cease to trade in a stock or currency it is because the intrinsic value is disappearing. Everything eventually comes back to its intrinsic value and if people believe there is none then it will go to zero.
So here is the test for Steemit. If nobody is able to make money off of these posts, then the main motivation for being in Steemit rather than another currency will be lost. Steemit drops, as we see in the chart, traders sell their positions and the cycle continues.
The crypto world is an interesting ride and it is about to get even more interesting.
Like most crypo currencies this month have seen large declines. I still have faith that steem will hold its value. Just as bitcoin / lite coin and others will rebound after so much gain some profits are usually skimmed of the top.
Time will tell. I still think its value is linked to the content payout.
I wouldn't be overdramatic about it.
60% is not dramatic?
With any volatile market, those who are strong and persist succeed =) I'm sure you will have a lot of users stop using steem all together with the price being so low.
Cryptos are nothing more than a trading product for now. In order to see what happens to those that hold look at the stock market favorites of 2000.
AKA great time to buy? :D
Could be. No one can tell the future so you have to just trade accordingly.