That is a great question @mominsdt, thank you for asking. The best answer to a complicated question is that it is dropping because the whole cryptocurrency space has gone from being "hot" to "not". In other words, there were a lot of people around the world that tried to get into this kind of investment and all the money rushed in at one time and the price soared. Steem and SBDs were affected by this same factor too.

So because all this "hot" money entered and drove the price up, it appeared that steem was set to go even higher. Well, now that isn't the case. The amount of money coming into the market is dropping, and the amount of money leaving the market is increasing. So there are more sellers than buyers. As a result the prices have to drop to reflect this. And here too, steem and SBDs are also influenced by this trend.

The good news is this is a process that will happen many times. We will go from boom to bust to boom to bust many many times. The smart thing to do is to realize this happens and either 1) ignore it and think long term or 2) if you are going to trade/sell it, then buy low and sell high.

After an 80% drop in price over the last 3 months, we are closer to the lows than the highs. So the good news is the worst is behind us (if you want to see the value of your account higher). The great news is that you will get more SP than ever before. Its the way the system works... So if you plan on being here for the long run, it is actually preferable to see the price drop.

Does this answer your question or would you like to follow up?

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