How We Can Make STEEM More Valuable!!!!! Discussion On WHALE DUMPING
I am concerned about the falling price of Steem tokens. Steem has dropped to $1.11 as of this post! Steem dollars are made up of Steem tokens, in this way SD are able to hold their value near 1 USD. So if 1 Steem token were to drop to $ .50 for instance, it would then take 2 Steem tokens to make up a Steem Dollar. If they drop to $ .25 then it will be 4 per SD, you get the picture.
There are 21 times more of Steem tokens than Steem Dollars. This means that Steem could fall to a price of under $ .05 and still be enough to peg the SD to the USD. The more tokens needed, the less each Steem token is worth. This affects the value of our posts considerably!
Remember it's called "Steem Power," not Steem Dollar power.
The solution?
We all need to hold our Steem. We need to create a demand that is bigger than the supply, in other words we want to make it very difficult to purchase Steem. We hold Steem, sell our Steem Dollars and buy it up while it's cheap and stockpile it!
When there is hardly any available, that isn't being held by us, the price will rise. Simple supply and demand. There are lots of day traders out there, all we have to do is keep them hungry. Steem has been 80-90% pre-mined and then given to Steemit. The Steem blockchain then awards the Steem using an algorithm to determine who gets what, by way of upvotes. The other 10-20% is being mined and so new Steem will still come onto the market, but very little.
I just checked Bittrex, there's only 95,944.884 STEEM for sale, but there is bids totaling 12,476,670.071 STEEM. So there is a huge demand and very few Steem. The 24 hour volume on Bittrex for Steem was $40,226.21 or 69.59 BTC. As this was obviously "Whale Dumping", we all need to be scooping these tokens up to hold! Let's keep them dying for Steem, HODL
What is mind boggling is that if you had joined Steemit early, just a little over two months ago, your wallet reward was 10,000 Steem , worth approximately $3 at that time! What do you guys think?
There is an awesome fundamental analysis by @hisnameisollie which explains why the price of STEEM is trending downward right now and why whales are dumping. He refers to it as the Push-Pull effect https://steemit.com/steem-help/@hisnameisolllie/the-push-and-pull-effect-of-steem-power-incentives-why-the-of-steem-held-in-steem-power-will-tend-to-90-overtime
Very nice
I think steem is in its price discovery phase, it could pull back to $0.50 and peg would still be solid.
However I do think that more value needs to be added to the Steem token, I gave a brief proposal here: https://steemit.com/steemit/@chitty/adding-special-features-for-dolphins-and-whales
Not a bad idea at all
Pretty fantastic idea actually. Talking people into holding long term may be difficult, but giving them/us incentives to do so makes perfect sense.
I'm not powering down in 17 years so lets see were i end
haha 17 years?
Yes I will just want leave it there, I don't need it!
Hi j, I upvoted because I think this is a topic people need to have in front of them to think about and do their research. I do think your current numbers and well-researched are solid (thank you), but I disagree that "holding" onto what we have is the key to creating demand. The exponential growth and mainstrean popularity of the platform will create more demand organically. The price will continue to fall (acc to the few big guys I've read, altho you look pretty whalish yourself haha)) ... just prepare for it, and be okay with it. Holding onto what we have is smart but not because of what we have, but because Steemit will eventually be in the millions of users - those numbers are where the demand will come from.
Thank you for your response. I admit I have traded a bit with my steem dollars, but that was before I started noticing the drop and what not. I am still building my steem power. I know it seems it, but I am not whalish. I have worked very hard to earn what I have. I post every single day about topics that I believe truly matter. I didn't join steemit in time to get rich quick like a lot of whales did. I have built up my account by sharing my stories and my thoughts and trying my best to spread love and positive energy! I agree we will recover in the long run. but I also believe we can bring the price of steem back up by working together. your opinions are greatly appreciated and have given me some things to think about for sure.
Thank you! I did see the scope of your content and am following. One of my first articles (I only have a few so far, 1 week Steemer) is "Would you be on Steemit without the financial incentive?" and I state that I would indeed, because it's just a wonderful platform. A free blog without ads is enough for me, as I have tons of content that I've been paying webhosting for for many years. In context of your article and our conversation so far, I also think the features and excellent community will create global demand for years to come. Thanks again -g-
Just to verify, we need to buy steem and not steempower?
Steem Power IMO is just there for long term. Steem is what goes up and down in price. Like every other coin.
Excellent Post
Thank you very much crazylife. Your name hits the nail on the head haha.
STEEM is falling because the coin supply is adding a million new coins every couple days. Inflation, it's that simple. The demand on the open market is thirty times lower then coins of similar market cap.
Steem is currently number 5 and has only been around since July. The demand will go up if we start holding!
Jpiper, I hope your optimisms pays off for us but the current value is unsustainable.
I'm very very curious to see what happens with Steem whenever AMP drops.
Now there's the data that should be paid attention to.
I meant to mention that my first article to pop (over $200 so far) hasn't paid out yet, but I plan to sell half because of financial need, and hold half long-term. Also I'm selling to prove to those I know personally that Steemit works. It's one thing to say "I'm rich on Steemit" (I'm definitely not!) but until they see the physical cash many won't believe.
It will be easier to help people take this seriously if we can all prove to them it really does pay out (I'm documenting the process) - that way they'll be more wlling to sign up, to tell other people "Well I personally know a guy who..." and that factor will create demand organically as well.
I had that same problem! None of my friends believe it is real and think I am an idiot for blogging so much haha. We real prove them all wrong ibringawareness! Thanks for standing with our community.
Interesting explanation!
Thank you for reading :)
Great presentation of info. and a great visual picture you've put together to go with, thanks! upvote
Glad you liked it!
There is currently no FOMO on steem and people are making a lot of money cashing out. The steem price will take time to settle and move on fundamentals of supply/demand with rallies occurring now and then followed by long drawn out down trends. What is true is that if you want to do well here which anyone and everyone can, is the sooner you power up and the more you power up, the sooner you can power down and tell your boss you quit. :D
Haha wouldn't that be nice!