Bitcoin price stability means increased market cap, how the market values Steemit, will there be another Ethereum hard fork?
The Bitcoin market cap keeps growing while the price stays the same because more Bitcoin is being produced and demand is not going down. Usually when more of a product is produced the demand and price go down. This is a great sign for BTC.
There could be another Ethereum hard fork (to counter the threat of replay attacks), this time it will go smoothly but the price of both Ethereums could change as talk of this potential fork spreads. Imagine if Bitcoin forked and there were two Bitcoins now? That would be an end of the world type Bitcoin scenario.
When people no longer buy Steem because they find no value in it then there will be a collapse in price and Steemit cold be in danger. The problem with that statement is that it is true with any crypto or commodity. When Facebook was unprofitable if it was considered valueless and people stopped buying its shares then it would have disappeared too. Steem has tied itself into social media and thus has an anchor that gives it some value. Even if people were only paid pennies to post here there would still be some value. To lose 100% of ones value is hard for some entities.
only 10% of steem is on the market, 90% in steem power, so as long as steemit.com is alive and well, then steem can never crash, it's that simple
Also the STEEM being mined goes directly into VESTS which are converted into STEEM at the same rate as SP when it is powered down. So mining supply can't really affect the price much either.
"Never" is a strong word. Speculators could try to manipulate the Steem market on exchanges and it would not matter what was going on with Steemit. As time goes on this may be harder to accomplish, but it is definitely something that is possible.
There is an equilibrium at stake with Steem, meaning that if price goes down, you can buy a lot of steem (power) for cheap. So it's a self-correcting mechanism in a sense. The price can't really collapse due to very low liquidity of steem tokens.
Under that scenario isn't it only self-correcting if there is still a strong desire/demand for Steem Power?
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Nice @bitcoinmeister
Shot you an Upvote :)