I dont think its a problem specific to Steem. Its the entire crypto currency market, that is loosing credibility.
For one its the stupid permanent creation of new coins, that all claim to have a value. That is ridiculous. Its the same kind of money printing like the central banks do. And all the waffling about block chain ect. doesn't make it better. A unit of money has to stand for a certain amount of value. That cannot be created out of thin air.
But even if there would only be BTC - that is corrupted as well by the futures trading.
We'll see if and when people start to see this. It could lead to total evaporation of crypto prices, if the run for the exits begins.
There are 2081 coins now. Thats way beyond any reasoning or technicalities. Combined they have perhaps 500 trillion units - so how much can each one be worth? Its just simple math and logic.
May be 20 or so with 250 mio units each can survive. Thats 5 billion units, each $1000, would make a market cap of 5 trillion. If things go really well, that is.
Which coins are among those 20 - thats the big question.
I dont think its a problem specific to Steem. Its the entire crypto currency market, that is loosing credibility.
For one its the stupid permanent creation of new coins, that all claim to have a value. That is ridiculous. Its the same kind of money printing like the central banks do. And all the waffling about block chain ect. doesn't make it better. A unit of money has to stand for a certain amount of value. That cannot be created out of thin air.
But even if there would only be BTC - that is corrupted as well by the futures trading.
We'll see if and when people start to see this. It could lead to total evaporation of crypto prices, if the run for the exits begins.
There are 2081 coins now. Thats way beyond any reasoning or technicalities. Combined they have perhaps 500 trillion units - so how much can each one be worth? Its just simple math and logic.
May be 20 or so with 250 mio units each can survive. Thats 5 billion units, each $1000, would make a market cap of 5 trillion. If things go really well, that is.
Which coins are among those 20 - thats the big question.
The bitcoin futures has nothing to do with this. It’s supply and demand
There’s heavy selling and not much demand at all.
I agree but steem has a high high inflation rate so will be hit harder like rest of that group