DON'T PANIC! Re: Whales Dumping, Steem Dollars Crashing, and Why the Future of Steemit is Worth Betting On... all this in non-technical terms!

Altho it is quite true that

1) The price of Steem is no doubt crashing right now now  ;  and yes

2) The market seems to be flooded with way too much "Supply" ("... and it's all because of all those greedy Whales dumping, not holding forever, and ESPECIALLY it's the fault of those reckless founders mis-managing the blah, blah, blah....."
(I'm being facetious - forgive me if I'm almost directly quoting you - about 6,000 of you/us that is.)) ; and YES, it's a fact that

3) Steem is (allegedly) wayyyy over-valued now, and well past it's current "market cap" ...

True all that.  But...

I'm personally not concerned  *at all*  about the so-called "market dilution" or current low price of Steem. In fact, I'm kind of thrilled about it, and I say this as someone who is buying in with my real fiat currency (now that's a paradox!) even at this moment. Well technically, I'm waiting for my Bank deposit to  Coinbase.com*  to kick in, so I can buy more than what little I already have, from my initial test run interfacing with Coinbase...).

I've detailed this once already in my short time as a Steemer, but feel the need to revise my previous work (shortening it a bit) and re-post it for the Monday morning economics minded crowd this time.  (D'oh!)

I’m actually arguing that in the coming months+ the “demand” side of the Supply & Demand equation will kick into overdrive - and then into hyperdrive! - almost regardless of how carelessly or recklessly (in many ppl’s opinions, but not mine) our currently “over-valued” Steem Dollars are being “dumped” during this Beta period. 

Emphasis on Beta...

You see my panicky new Steemer friends, I believe that - investment and even potential earnings aside - many millions - then maybe tens of millions of - new users will continue joining Steemit largely for the free blog offered that is AD-FREE.

Steemit offers a cheap (free now) blog that is something of a web-hosting solution in many ways (one of the primary reasons I am here in fact) empowering low-income people globally to have their voices heard that were otherwise disenfranchised from the global conversation. My gut feel is that so long as that offer stands, the demand for this product will always exist, regardless of the financial opportunities also inherent in the business model.

What I don’t think people - i.e., most of us “armchair quarterback Steemer analysts" - are putting into this equation yet however, is how the Steemit reward for sign ups keeps dropping dramatically, and especially no one that I've seen is commenting on what that means!

I signed up and received $5 for free only only about ten days ago, and then almost immediately watched it go to $4, and then just $3. Down from what, $7, less than a month ago? Down from $10 originally - at least that is what I've heard whispered in secret quarters late at night...

My theory is that eventually it may “only” be free to sign up pretty soon, perhaps once the Beta stage is complete. Perhaps soon, Steemit could only afford "only giving away" a free blog / popular spam-free / troll-free social network - but without the "free money included" - at some future point.

Dream with me people : PART of the power of this platform is that within a couple of years (sooner? later? but eventually) every high school and college kid in China and Uzbekistan is likely to have one of these accounts, while grandmothers everywhere are going to be wondering why their “babies” aren’t posting on Facebook much anymore...? And FB reportedly has 2 BILLION USERS today (a great chunk of whom's eyeballs they are now in a "clear and present" danger of losing!) 

Will Steemit be to Facebook what Facebook was to MySpace?

And with probable demand like I’m postulating here, should we really be all that worried about what the price is today, while still in Beta? Look at what happened to one man’s $27 in Bitcoin he totally FORGOT ABOUT for FOUR YEARS! (Link and below photo credit to www.TheGuardian.com)

Spolier Alert : it was worth $886,000 when he remembered he had it. 

Could Steem ever see a similar increase?

Such thinking by anyone would of course be PURELY SPECULATIVE, but this actually does gets crazier people, as far as the future possible price of Steem goes. 

Consider this possibility : After they’re done giving it away for free - or even before - Steemit could then possibly start charging (GASP!) for certain features - like many other "free services" already do. They just charge a bit for the Premium upgrades to make you "fully functional" ...

(Star Trek TNG joke there, sorry!)

Functionality like easier uploading and hosting of images, without the current risk of them disappearing later. (Oh, I JUST LOVE the irony and the sheer business genius that Steemit is tapping FB and Reddit’s user base, but letting FB and Reddit pay for hosting so many of the images we see here, hahaha! Forget about how greedy you think these guys are, and just think about how smart they are for a second! Call them evil geniuses if you will, but don't let the "genius" part of the insult escape you! Not for a second. 

My premise for this article rests upon this being true btw.) 

...Or,  Steemit could possibly introduce a small fee for hosting audio (mp3 files) for independent podcasters (like me - see http://www.Area51.fm - Or, like my high school friend who turned me on to Steemit who already has a huge YouTube channel now, but would like to upload videos knowing that his content is FREE FROM YouTube censorship). 

SO JUST IMAGINE ...

...if they let the “value” of Steem drop to almost nothing while still in Beta, but at some (perhaps even pre-planned, mwah-ha-ha) point decided to charge only $1 for a membership.

You know, “to avoid abuse” / “to protect the community from spammers and anonymous criminals” / “to prove you’re not a fake account by tying your Steem to your real bank account, so our users can “conveniently” bypass Bitcoin, Coinbase, Blocktrades, etc")...? Not to mention Facebook and Reddit.

And then just give you back (maybe, maybe not) the equivalent of your sign up fee in Steem dollars? 

What if they decide to make it a mere $1 monthly recurring? Or $10 annually? I’d pay it! 

What an incredible VALUE for simple unknown bloggers and podcasters who want AD-FREE sites? Or at least, the paid(?) option to pick and choose YOUR OWN ADS, if your content proves in the long run to be able to attract them? Am I being just TOO forward-thinking here? 

Anyways, my larger point is that ANY amount of fiat currency income - especially, especially, especially - in recurring fiat currency income (!) that Steem might be able to bring in in a year, or five, from now, will attract investors in a huge way, because the business model incorporates a proven stream of producing recurring income. How about $29, or $49 - $99 depending on what you want - annually, if you’re a business owner who wants a second account just for your business or organization once this takes off in the real world?

Okay maybe THAT’S a stretch, but maybe not.

My point is, there are so many ways that Steemit can eventually start making money in real income, effectively almost 100% ensuring that the value of Steem Dollars has absolutely NO possibility of EVER crashing to $0, because it will always be pegged to a low. Even if that low is only equivalent, at minimum, to the “price” of joining such a quality platform that is loaded with benefits, features, and most of all - value. 

Bitcoin, Etherium, etc, CAN crash to zero, because "all" they offer is a cyber-currency. I'm arguing that Steemit offer SO MUCH MORE, and will almost ALWAYS have SOME inherent value, and therefore almost always be worth something.

STEEM dollars then - loosely speaking, and if and only if they always also have a blog (or more) attached to them - are actually more akin to wheat, oil, silver, gold, baseball cards, comic books, or fine art pieces, just for example(s), than they are like Bitcoins, or Wall Street Stocks for that matter.

So, am I a rosy-posey optimist about the possibilities of this platform?

 Yes I am. As I told my friend whom I just helped sign up last night :

"Joining Steemit now (and especially buying Steem Dollars) is like being the first person in your town to hear about Facebook (R), Bitcoin(R), and Wordpress(R) ALL AT THE SAME TIME, AND getting in on them before almost anyone else.

"You currently get a blog, a social network, and some Crypto-currency all for free, and all without any - or at least most - of the downsides and drama involved with any of them."

To me, that’s a winning product that can ONLY increase in overall value (and therefore PRICE) in the coming months and years to come.

To close, there is in fact lots and lots of criticism towards the “founders” of our little Matrix here currently... and the so-called Whales... for "dumping so much Steem" and making money hand-over-fist right now. To that I say:  

1. I don’t blame them, because they’ve certainly earned it. Anybody who is actually profiting from giving me (and the entire world) a free product, that is non-invasive and is NOT selling out my personal, intimate details to corporate advertisers, that ALSO empowers me TO EARN MORE MONEY IF I work hard - CAN and SHOULD make all the money they freaking want to, from doing all of this for little old me. 
   
2.  God bless 'em and they're in my prayers. 

So in closing (well, turned out not) I say that I actually HOPE the price of Steem drops to 10 cents, or even a penny in the next few weeks. And remember, that’s said as someone who just put real money - my hard earned US fiat currency dollars - into this system. 

Will I lose it if all these founders of ours actually don’t know *exactly* what they’re doing?  Could you?  100% Yes.  Do I care?  100% No.  Because even if the financial side busts entirely and permanently, I’m glad for the free platform (and I will remain for that alone - as I said last week here). 

And frankly... heck, I already like my “friends” here better than any other social platform I'm currently on. 

Here, I’m getting BOTH tremendous value AND a truly once-in-TEN-lifetimes-opportunity, by investing a small bit of time and money here now. (Well - lots more time than money, as anybody reading this today has already experienced yourself!) 

In fact - altho I’m barely squeaking by in some ways - with my own article, I think I've just convinced myself to go find another $100 to put into Steem ASAP - to add to the $25 I have in transit now - and especially if/when the price drops to under 50 cents. Or even a penny. 

To everyone really concerned about the price of Steem dropping I’ll simply say, have you never heard the phrase 

“Buy Low, Sell High?”

To whatever extent I’m able, I’m investing both my time and money here, and I'm playing “the long game” with Steemit.
-g- 

(DISCLAIMER : I am NOT an investment advisor (used to be a licensed broker long ago but quit on principal after 11 months in that industry), nor am I anywhere near qualified to offer financial advice (I’m a full-time waiter by profession, an aging author, and a no-name podcaster who is currently carrying some large credit card debt. Listening to me may not be in your best interest, all things considered. Also, past performance (even of Bitcoin, for example) is not indicative of future gains. Please consult a financial professional before making any decisions, as the information presented here is for for entertainment purposes.)*

AND for up-vote purposes. Show me some love below friends! 

(*DISCLOSURE : IF you do find this article entertaining and informative as well, yet are brand-spanking new to the digital economy and wondering how to buy, whom to trust, etc, integrity demands that I disclose to you that my link to Coinbase.com from above is an "affiliate link" (which they offer automatically to all members) meaning if you click it and spend $100, both you and I will get $10 extra in Bitcoin added to each of our accounts.
They're quite popular tho, and I first purchased digital currency using Coinbase in January 2016, when Bitcoin was just under $400. Currently, eight months later, it's just under $600. Yet even seeing a near "50% gain" in that timeframe, I'm buying Steem now, to sit on for a few years perhaps. This personal information does not constitute financial advise either, just sharing my experience and my plans.
Buyer beware, perform your own due diligence, consult with a professional, and "Don't follow me - I'm lost!" all apply here! As does this brand new balanced article by @kaylinart ~ "Don't Put All Your Eggs in The Steemit Basket!" https://steemit.com/steemit/@kaylinart/don-t-put-all-your-eggs-in-the-steemit-basket AND @krnl 's "Power Up" article ~ https://steemit.com/steemit/@krnel/do-you-have-faith-trust-loyalty-and-belief-in-steemit-then-power-up
Copyright 2016 Guy Malone. http://www.TheWorkingGuy.com  All Rights Reserved.