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RE: With A Drop In Price Comes Negativity: Time To Look Up
The problem is not that the price keeps on going down. The problem is that the price of STEEM is going down more than other top cryptocurrencies. We're number 42 now on coinmarketcap. We were in the top 20 not that long ago and STEEM once held a top 3 spot shortly after the launch!
With all due respect, even Dogecoin is a top 25 top coin at this moment.
The STEEM blockchain is certainly not well-understood and the price going down is not related to fundamentals. You can say what you want about the STEEM blockchain, but it is still the most used blockchain out there.
Having said that, they better be pulling off the SMT implementation. It's the only way for STEEM to show the world this is for real.
Then let a thousand flowers bloom...
This is true but we are also a high inflation coin so it is not surprising that we drop faster when times are bad as holding is not enough. Steem tends to recover faster when times are good also.
I don't think the inflation rate has a big influence on the STEEM price yet. It's "only" about 2x of the inflation rate of bitcoin.
I'd say speculation has a bigger influence.
STEEM also doesn't seem to recover faster than other cryptocurrencies neither. Certainly it has not been a better investment compared to bitcoin. Except for the big rise in 2016, bitcoin would have been a better investment.
https://coinmarketcap.com/currencies/steem/#charts
Having said that, I'd still hold on to my STEEM. It is still the most undervalued crypto out there, IMHO.
Hmm. It is difficult to compare inflation to small users vs bitcoin mining by large corporate entities. Small users are likely to sell their earnings to pay for things where are larger users are more likely to keep them invested. That said with bitcoin close to the required power price levels for mining perhaps they will be dumping most of their coins to cover costs as well. And the majority of seem inflation is quite consolidated in a few hands; so it is difficult to tell.
Agreed.
Oddly enough bitcoin miners likely have to sell their mining rewards to cover electricity costs, while someone "mining STEEM" only is investing time or contributing "proof of brain".
Still, the perception is that mining STEEM is less valuable.
A fallacy!
Comparable to the 'broken window fallacy', IMHO.
Yes true. Time will tell if it get to that value or fades away .