Bitcoin is forking and crypto holders are concerned ...

How will this fork affect my Steem!?!

That answer is up to you. I created the image above to represent the perceived correlation between bitcoin and other cryptos ... but my image is wrong in many ways.

First Bitcoin does not trade 1:1 with ANYTHING else in the world
The value of bitcoin, as I discussed in a previous article is based on its utility as a cryptocurrency and its scarcity. This value rises and falls according to the whim of whoever holds the greatest stakes in the fund (or more accurately who is trading them). Interestingly this is the same thing that happens with gold and diamonds (thanks to the holdings of DeBeers). I expect Bitcoin to decrease in value while other coins increase in value until an equalization is reached. Where that equalizing number lies depends on the relative value and scarcity of other cryptos.

See This Post

Second STEEM (and the SBD) are not the same as Bitcoin

"The Hell!?" You say ...

Steem is a different kind of currency. It uses the cryptographic blockchain model, but it is in no way Bitcoin. The similarity is literally like comparing apples and oranges, both are fruit that grow from trees and that's where the similarity ends. Because Steem is a contract, it's based in more factors than Bitcoin.

The value of Steem is based in the following factors;

1. It's loose tie to Bitcoin
   Because the market knows Bitcoin, steem may rise and fall with Bitcoin
2. The loose tie of SBD to USD
   Steemit Inc. Acts as a "market maker" to set the value of SBD as near the USD as practical.
3. Community size and stake
   Each member of the Steem community holds a portion of the "VEST" or investment in the whole. This VEST determines the market scarcity.
4. Scarcity
   There is a limited supply of Steem and SBD that could conceivably run out if no one ever spent or sold it.
5. The stake of "Whales" whether active or not
   The "Whales" are Steemit's market makers. The price they buy and sell at becomes the market price by default.

How can we prevent Steem from crashing if Bitcoin does?

tldr; DON'T UNDERSELL YOUR STEEM

Again for the people in the back DON'T UNDERSELL YOUR STEEM!!!! If the market falls below $1 USD / 1 STEEM don't sell. Hold your Steem and wait for the market makers to notice there's nothing to buy.

Here's where it gets tricky. If enough people do this it causes a PANIC SALE. A panic sale is when market makers think that an asset has lost all value. These makers will then sell for what they can get!

Recently, @jerrybanfield posted about a half-off Steem Sale. This is exactly what happens when makers panic. What should you do when this happens?

BUY! BUY! BUY!

Gobble up every bit of Steem you can when it falls below $1 (or whatever threshold you are comfortable with)! This triggers market makers to notice the scarcity and guess what?

PRICES GO FLYING!

Market makers see high volume buys and they want in, but you're smart and you won't let them in without taking a tidy profit for yourself.

In summary;

Don't sweat the forks. Hold on to your Spoons. Take advantage of a knife market ...

Disclaimer: I am not an investment professional. All investments bear risk, cryptocurrency is VOLATILE and especially HIGH RISK. Never invest more than you are comfortable losing 100% of. Nothing in this article is intended as investment advice. Invest AT YOUR OWN RISK."