This Post Is A Non-Scientific Study - Are You Ready to Buy?
Alright, I am measuring the current mood.
Are you feeling... FOMO yet.
Or are you still down in the dumps and sad/mad but hanging out anyway...
I fully admit I am trying to examine your feeling state to decide if I am ready to buy yet.
So, if you are willing.. tell me your mood, your buying strategy and try to give me FOMO.
I'm planning on buying a bit more, I just don't know if I am ready yet.
What do you think?
Give me your advice below! Don't worry I will not consider it investment advice..
I just want to get a feel for the mood!
@whatsup
I've been buying all the way down. If it drops lower I will buy more but made it to dolphin this week so very happy with that.
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Congratulations @niallon11 Me too, I've been buying for the last 3-4 months and made it to dolphin a while back. Just in time to see the steem price fall off a cliff lol. Am I bothered? Not a bit and I'll carry on buying to 0.001 cent and beyond.
The tech is sound even if the direction is a little off at the moment. Steem is a good value proposition...to me at least.
Exactly. All of this is laying the groundwork for the next few years. That's why the price to me spells opportunity more than anything else. As long as the chain is still here in 5 years we should come out of it fairly well. Once the prices rise again, people will start looking into what is here and then start getting involved. This is only the beginning.
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Correct. Steemit.inc are working on a solution that will allow just about anyone with a PC with 4 gig of ram to run a steem node.
As long as we have at least two computers running we will have a viable steem blockchain.
I'm sure plenty of people will set up a home node under this new model. I will for sure.
If Steem actually goes to 1c all existing stakeholders will be wiped out by inflation caused by SBD conversions.
Can you link to something that explains this statement further? I really want to understand your line of thinking.
SBD is essentially debt held by Steem holders collectively. There is currently 12.7 million SBD in existence. At $0.01, the current supply of Steem would be worth $3 million.
At that point, SBD will be in almost complete default, since SBD is no longer fully backed by Steem once it's above 10% of the virtual market cap. In that scenario it's 80% of the virtual market cap.
As the price goes down, SBD's are worth more and more Steem, at least if conversions are happening. Every conversion increases the total supply of Steem and reduces the inflation protection provided by the 10% limit on further conversions. If people decide to arbitrage SBD (buy and convert whenever it's below a certain price based on what you would get from Steem), you will eventually get to the point where conversions are creating millions of Steem, potentially more than the current total supply of Steem.
So far the fact that SBD is no longer issuing $1 worth of Steem has discouraged SBD conversions. Some large stakeholders may be deliberately holding onto SBD to prevent a downward spiral of their vested Steem. Or it may be purely psychological, because it can still be rational to convert SBD when the price goes below a certain amount, especially if you don't hold Vested Steem yourself.
But it would also be trivial for an attacker to buy SBD at highly discounted prices, and convert it to massively inflate the supply. They could profit from this by shorting Steem before they do.
Interesting idea you have there. Have you factored in the new steem emitted daily?
SBD is a debt instrument this is correct.
Anyone who converts SBD at the moment gets a haircut in it's value based on the the total of SBD to liquid steem available on the internal market.
On the external markets. I think people who bought SBD as a dollar pegged stable coin will be selling it asap which will further drop it's value.
As far as vests go. If we hold steem then the number of vests related to that steem increases annually at 9.5% this year and 9.0% next year etc. Due to the current inflation ratio of steem
This statement above is not possible. It doesn't make any economic sense.
We cannot have more steem than the current supply.
I'm trying to follow your train of thought. Can you elaborate?
This inflation rate only relates to Steem created at point of issuance. When Steem from reward pool is turned into SBD, it takes that and creates "Virtual Steem". This Virtual Steem becomes real Steem via SBD conversions, but at the rate given at the time of the conversion, not the time of initial issuance. 1 virtual Steem has the potential to be 10 or 100 real Steem some day down the line.
Check out this chart of Steem supply by @socky. Notice the curve upwards during a period of high SBD conversions in November. The real inflation rate in Steem is variable due to SBD conversions.
I'm afraid we're confusing terminology. I'm talking about the convert_sbd function which is the smart contract backing the SBD token. You're talking about the rate of exchange on the internal market. They are two completely separate issues. The SBD smart contract is completely independent from the internal market price (although internal market price will affect the behaviour of those engaging in conversion arbitrage).
We have more Steem than the current supply every day. It increases above the current supply every day.
Current supply = 287 million Steem. In a scenario where the price of Steem goes low enough, and SBD is being converted, you could see more than 287 million Steem created via SBD conversions. In fact it could be billions of Steem, worst case scenario.
Thank you for the detailed explanation. I can see clearly what you are getting at now.
From new emissions I'm assuming?
The sticking point for me is this.
Aren't these SBD conversions buying up existing steem?
And isn't the SBD used to buy the steem burned?
I get what you mean about the virtual steem being created from converting steem to SBD and the mismatch between issuance and current price but it still doesn't explain how this virtual steem can be valued without reference to the quantity of steem in circulation.
We have some weird economics going on here?
Edit: OK I get it now. Steem and SBD on the open market.
That SBD isn't burned.
That is not good at all. Damn!
Just noticed you are from the Isle of Man. Cool I'm in Cambridgeshire and collecting Brits. Do you know about the @steemclub-uk initiatives?
Good for you! Whoot Dolphins!
Sound, thanks for that.
When I started here dolphins were this unapproachable class that seemed a long way out of reach.so when the chance was there I had to take it. Hopefully when the markets recover we will get a while new wave of people joining and trying to get there as well.
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Not buying yet. Market sentiment seems pretty subdued.
It's a mix judging from this post.
I have been watching the DJIA, and I think It will have a few more dips. They are shaking the market, this is happening in BTC also. Where BTC goes so goes Steem, I really don’t like this but it’s a fact
That being said I buy gradually, Monthly... I stopped a week ago, but I now believe I will step back in and pick up some Steem. It very well might dip more, but this is a very good price!
I will be powering up.... thinking long term 😁
Nice, thank you for the reply. I did it in kind of a joking way, but I am curious how everyone is handling the bear market.
I have been investing in Steem for a long while now, it's getting rather annoying that I keep buying a load then the price drops! But long term I'm confident the market will turn around and Steem has enough of it's unique features in dApps and the wider communities to see it pull itself up above the crowd.
We do need to work out how to increase investment coming in - whether individuals or big business - @pennsif is running a series of discord discussions every Thursday 8pm UTC on the State of Steem and promoting it / bringing the value back up - he leads a great show well worth listening in to.
#thealliance #witness
This is awesome! How do I get invited to @pennsif's meetings?
Just turn up, it's in MSP Waves (PAL Discord) see this post for the full round up of topics. Also tomorrow night 5pm is the Witness Chat in @steemitramble run by @shadowspub - hopefully some of top Witnesses will have some insight on the market.
Hi @whatsup - message me on Discord (Pennsif#9921).
The short answer is no. IMO BTC is in a wave 3 of C of IV. I expect a brief relief rally (or fake out) before a final capitulation low. It could get pretty ugly (I mean uglier).
I am just trolling around here and on whaleshares. It is kinda my thing so I just go with it. Plan on buying some maybe when it gets down around a dime.
So next week then? lol
Lol. I love it. Lets get penny steem.
I would be buying now if I could. Any other crypto I make is converted to SP. Can't spare fiat but if I could I'd be a buyer of as much as I could under 30cents.
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Good mood
@whatsup,
Buy at this rate can definitely leads you to 10X profit within few months of time!
Cheers~
I hope so!
I think, price is going to still go low further below 3k at least based on the current sentiment.