Thoughts on Currencies and Valuations

in #lif6 years ago (edited)

There will always be people attempting to predict the markets. This is not only the case of cryptocurrencies, but something that reflects across all of them. The techniques used are widely studied by people who want to participate of these markets, but mastering them I’m convinced is highly improbable. As much as it may be correct to say that analysts are more right than wrong, but for a really long time I’ve been trying to think exactly why that is the case.

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What I’m attempting to express is hardly complicated. All the technical aspects used to read charts, the RSI, the moving averages, the bullish flag, etc. Might be attempting to predict market sentiment, the reaction of investors and not so much the asset’s value being traded. In other words, an unspoken agreement is made between those who are looking at the charts and a majority of investors jump in at the point of maximum agreement.

I’m thinking of this because this says very little about the value of an asset. If you were to think logically about the value gasoline for that matter. I doubt your way of looking at its value would be to attempt to predict if others would be willing to pay the same price for the gallon. You know you need it, you know it’s going to be used, so you simply purchase it.

If you are wondering why this is relevant to me or why I’m thinking about this today. Well, that is because I think a token like Steem is very close to becoming a usable asset and leave its days of exclusive speculation behind. The way I understand the upcoming SMT’s are going to give Steem the much needed boost it deserves.

I’m aware some might disagree with me on this matter, but I’m willing to backup my claims. An exclusive speculative market is extremely vulnerable to short term sentiment. If someone is speculating on Steem for example, that speculator is hardly interested in the long term valuation and a lot more in the short to medium profits to be made. This in turns gives Steem its current volatility making it harder for Long term investors to make the leap.

I’m saying this not because I believe speculation is a bad thing. In every single market in existence speculators are what give assets their liquidity thus making them an extremely important element of the ecosystem. But a healthy asset class, and more specifically a healthy asset’s value should probably not be exclusively derived from speculation.

Since it seems a little obvious to me at the moment that the speculative market is mainly driven by market sentiment, it’s also obvious that if someone would want to do something to improve the value of an asset, that contribution should be focused on improving sentiment. In other words, a positive representation of the asset, a proposed application, a working product.

On these respects Steem has a huge advantage over other assets on the cryptocurrency world and as such remains a blockchain no investor could really dismiss lightly.

I remain positive about the future of Steem as I believe it’s right on the brink of a huge transformative transition. @steemitblog has been extremely active keeping us informed. Something I’m told is fairly new, and it’s quite possible SMTs will launch before years end.

I hope many here remain positive and not allow fear to dominate. There is a lot of track before the true take off.

Steem on my friends...

@chbartist

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Great article I like reading 📖 it

me too have a lot of good information !

STEEM has a ton of issues to overcome before it will be taking off in price. Not speculating, but unless they begin to control inflation or increase user base price will be stagnating for while.

I don’t mind the price staying low for a while longer.... gives me a better chance to accumulate at lower levels ..... As soon as I have 100,000 it can skyrocket.

Seems to be working ok for me. I went from investing zero dollars to earning $40,000 in a few months posting my artwork and photography.

Ok... thanks for your input. I have seen a lot of artists do very well on Steemit. Better than me. At least they are getting paid for their original creative work here. That is a big step forward for artists like me that have worked years and years and years for nothing at all.

Many people make nothing on Steemit since they have not read the White Paper. All the Secret Knowledge to make a living on Steemit can be found there,

...

I can not even sign up to u.network .... ???? Is it in Test Mode or something ?

It's very sad @kendrahill that you have such a low opinion about entire population of people here on Steemit.

I've been here less than half year and I met number of valuable bloggers and influencers. People creating great content and supporting others.

I believe you just didn't have luck with getting to know right people.

Yours
Piotr

..

STEEM is a great place for Artists and people who CREATE original Content .... My kids made over $1,000 so far.

...

It looks like you have been here on Steemit since July 2018. .... 30 days so far ?

I create paintings, photography and digital art .... I post 5-10 times a day. I wait for 30minutes before I Upvote my own post so that anyone who voted before me share 99 % of the reward.. Curation Rewards.... it is through Giving that you Receive.

Speech lover

this is a live project, many smart people are involved in it and it will only grow despite the market.

STEEM truly does have a lot of smart people with fairly brilliant ideas for enhancing and increasing the platform. @icopulse has it right that its a live project. It isn't just some idea someone made for the laughs or just to into the cryptocurrency wave but people have real ideas that can be used with STEEM. Dlive can be a Twitch contender, Dtube instead of youtube, Dsound and Steem Monsters for music and a game integrated to accept cryptocurrency. You only need to have an idea and pitch it so its great that people share STEEM with everyone.

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I think the biggest barrier for entry is the actual process of getting people involved in the Steem Ecosystem. I mean I can see it being complicated for some who aren't very technical but want to know how it works. They have over complicated the system and shot themselves in the foot in a way. For example drawing the distinction between steem ,steem power and sbd and knowing which is more important may take some getting used to for the lay person. Steem cannot remain niche forever or else it will fail. Simple things like making sure users understand how to use the system and signing up for accounts should be taken care before they can charge. But I do agree that I don't see the system surviving without actual valued currency coming in.

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I have seen couple of guys whi invested as very little amount today they are mega rich,all thanks to cryptocurency . My openion on market on all the signal are not reliable, i dont realy know how to invest on steem.

yeah off course it will make a big impact on it totally agree with you @crypto2crypto.

One of those issues being this shitpost

SMTs will give the value of steem to rise and we are just in the beginning of its history as one of the most successful tokens because as of now applications on top of the steem blockchain are adding up along with its users and soon the steem token will get scarce and will make its price rise. @chbartist

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It is so difficult to predict the exact trend of the crypto market due to its being so volatile. In just a few pump or dump, the market moves significantly and this makes crypto an exciting asset to invest and trade. If you know how the market behaves and know how to play this game then you will earn huge due to its volatility. Steem on the other hand was so promising and I am so excited what steem will bring us in the future :)

i agree totally. with that in mind, if we have "stable" crypto markets, then the ingenuity of blockchain can be seen by larger amounts of people. in that sense, i'd rather take a thriving blockchain adoption over crypto, but that is just my honest opinion. cheers,-willy

Cryptocurrency is deflationary it can never be stable... If any one cryptocurrency becomes the de facto method of currency it will still take over 20 years for it to stabilize. And even then maybe never.

The currency is supposed to be international. Though the USD is stable inside the US, its value relative to the EURO is constantly fluctuating. Further the amount of goods you can buy with a set amount of USD fluctuates more than people think. And in crypto this would cause the value of the cryptocurrency to fluctuate as well. I mean more than 30% of the world don't have access to bank accounts, monetary value fluctuates all the time between countries.

If we want cryptocurrency to be used we cannot wait for it to stop fluctuating.. These damn wallets need to be set up so I can send a set amount of fiat to people and it just automatically, using market rates, gives them the appropriate amount of crypto.

you follow @jigneshbar and i am already follnw you so please follow @jigneshbar and upvotes on my articles

Alright I will follow you... but your gonna have to start posting some interesting stuff on cryptocurrencies.

What I saw so far was just you listing some well known coins, calling them your top 5 and then posting a two generic sentences about them, information I already knew.

Give me your insights and your reasons.

i agree , the only way for stability is for usage to increase.

i little bit think that steem price can go upto 500-600 dollar in 2021

I upvote you,you can do the same with my posts,thank you!

nice sky

APeople starts accepting crypto as real money 💰 that will happen but slowly may take years ..or it may become precious metal which we got after mining like gold ...

Crypto is still in its infancy. The debate is still on whether it is a payment mechanism or a store of value.
The current volatility discourages businesses from accepting it .
Like all new things, crypto has to go through the adoption cycles. For example, early adopters of electric cars suffered the first years on finding places to plug in, today there are more and more charging stations popping up around; not enough but a huge improvements compared to few years ago

"currency" in cryptocurrency defines it as means of trade.

Unluckily (or luckily?) it's considered by many as sit on chicken egg till it turns into golden egg.

Even the late ones in the game hope not to be the last in the game. So the value of whatever TOP crypto they have will probably just go up.

Is it good or bad? It's obviously good.

If Bitcoin was worth $1 like in 2011 or 2012, there would be no headlines and the adoption would be 1% of nowadays adoption both by users and retailers. There's won't be any significant retailer accepting BTC, LTC ...
Because of value, Bitcoin became TRENDY and as payment option (and other crypto's) became the must have for progressive companies.

Not possible for a long time. The US government only takes dollars to pay taxes, not Crypto. Until that changes there will always be need for fiat.

Check out Arizona leading the charge. They're in the process of accepting crypto to pay for property tax. Long time is very broad.

Put it this way, any country who doesn't accept crypto as a way of tax is going to end up as a third world country.

but also since bitcoin is a fixed supply that will be over time people will want to hoard it

headspace21 thats not actualy an issue though. Yes, you only have a limited supply but you can send 0.000000001 bitcoin if you want to. That would be 0,0000082 $US at the moment. Hording will only drive the value up, thus eventualy prohibiting very small (or urgent and relativly small due to not including a fee or a low fee for the transaction) transactions, but not really a problem. Bitcoin of course isnt the only currency available though the only one that thus far has wide acceptance with big corporations.

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Only if there is regulation to control the pump and dump

Look at Gold, there's regulation to prevent corruption in that market but there's still manipulation going on to this day.

austin101 if there wasnt, itd be worthless. Other than a few high end uses such as high conductivity gold is utterly worthless.

on one hand, the speculative nature and potential value of the blockchain-based crypto sways people into not using it as currency. on the other hand, there aren't enough places currently accepting it. thus, it is a bit of a standstill at this point. with that in mind, loads of potential and i'm really excited not only for payment, but all the ways blockchain and crypto can be used to help people in a decentralized way.

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These damn wallets need to be set up so I can send a set amount of fiat to people and it just automatically, using market rates, gives them the appropriate amount of crypto. And every store operator needs to be able to instantly convert their crypto into fiat, else they will be too scared of the downside risk. It's one thing to lose an investment its another to have your business crumble.

Obviously big companies have less to worry about, but for the little guys who have started accepting their favorite altcoins it can make or break them. I know NANO has quite a few small businesses that accept it as payment.

Yes the acceptance must grow.

We won't have global acceptance of crypto currency until businesses begin to accept Crypto as payment for everyday transactions. And I mean accepting it directly without the need for an intermediary.

On these respects Steem has a huge advantage over other assets on the cryptocurrency world and as such remains a blockchain no investor could really dismiss lightly.

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I hope many here remain positive and not allow fear to dominate. There is a lot of track before the true take off.

Countries are working on the regulation of cryptocurency. So when al these solved. It must be on its peak.

Also, Steem is one of the best cryptos out there. There's already real utility.

Yes defenately. But it requires time to regulate cryptocurrencies. And also crypto exchanges should be highly secured.

Yep,bitcoin is facing regulatory pressure. When this all drama will over everyrhing should be fine

steem will follow bitcoin just like all the others will

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