Steem Dollars have increased more than Bitcoin since I got into crypto - Where will we go from here?
So everyone is talking about how Steem Dollars are pumping recently. Seeing it pass 15$ yesterday made me realise that percentage wise, the Steem dollar has gone up more than Bitcoin since I got into crypto late May this year. At the time, Bitcoin had just passed 2000$ and was beginning to gain mainstream media attention.
Now I had been aware of Bitcoin for quite some time prior to that but never got very enthusiastic about it. However, that changed when I saw the booming altcoin market, and how entrepreneurs could use blockchain and tools such as smart contracts to create new products services capable of disrupting industries. I quickly understood that ctypto was a lot more than just digital money! So I began following its movements in price and decided made my largest purchase of Bitcoin when it dipped down to 1850$ during the FUD before Segwit. Looking back, that was a pretty sweet deal considering how Bitcoin has now almost 10x'ed since then! Very few investments would have netted me better returns on my money, but of all the crypto's that could have outdone bitcoin since the summer, I suppose the Steem Dollars must be the least likely candidate. But, it is indeed one of the very few that have seen greater gains since I began trading.
It is perhaps also then a bit ironic that I got into STEEM after watching @jerrybanfield ‘s video of why he thought STEEM was the number 1 best crypto investment and why it could go to 10$ in 10 months. (see his post here). Seeing as we're now approaching 10 months since his prediction and since I got into cryptocurrencies, I found it funny how it was instead the STEEM Dollars that has soared above 10$.
Jerry Banfield was pretty close when he said we would pass 10 Dollars in 10 months. He just got the token wrong
Anyway, I thought it was interesting to observe, especially as we're seeing how everyone in "the real world" now talks about the massive increase in the value of Bitcoin since the summer. (Indeed, there is not a single day without Bitcoin and Cryptocurrencies making one of the headlines on the largest Economics Newspaper in Norway E24, where I consume most of my news). It's ironic then to know how the Steem Dollars, supposed to be pegged to 1$, has outperformed Bitcoin in the time-span that I've been in this crazy game.
So what do you think steemians? Why do you think we've seen these spikes lately and what does it mean for STEEM? I could write a whole post on how the very limited supply of SBDs, paired with its compelling simplicity and ability to be used for cheap and quick transactions, meaning that many platforms may want to hold a fair amount to use it for trade, will naturally lead to times when its price spikes. I think this can have long-term consequences for STEEM now that people have seen how high it can spike. Knowing that, many people will want to hold their SBDs should it go back to around 1 dollar, hoping to be able to sell it for a greater profit at some later pump. This could, in turn, lower the selling pressure, as authors and others who are on the platform to make money on their posts refuse to sell their SBDs to other cryptos unless it's valued higher. In any case, I take the demand for SBDs as nothing but a signal for increased growth in Steem in the months to come.
I would love to hear and discuss your ideas and opinions in the comments :)
The spike in sbd was grossly unexpected and the change is quite massive only thig is nt many were holding it at the time as we expected value to stay around 1$. It would have been a different case if it's steem that had this spike.
Good thing for steemit is that people would now tend to make more posts to have SBD rewards . Imagine a mere 3SBD reward for example is worth oer 30$
Do you have any opinion of what we can do to make sure the price of Steem dollars does not rise even higher ?
This is interesting @Fredrikaa
I have also been monitoring the SBD and STEEM the last days to trie to come to a conclusion of why it have been like a yoyo.
My teori (and it is a conspiracy) is that maybe there are forces at Steemit that make it jump up, because it is good for STEEM that it is momentum on it.
A coin that stands still and nobody buys is not worth much.
And since it has been so much movement on BTC my teori is that some one wanted the STEEM to rice in value also. And the easiest way to to that is to increase the value of SBD because its limit supply.
The STEEM is a young currency so my calculated guess is that we can see prices withe double zeroes behind it in some years and my dream is that is shall hit the 1000 dollar mark. But how realistic that is I can't tell.
But I am sure that the only thing for me is to power up :)
Kindest regards
@Gyldenhorn
Powering Up is the name of the game at the moment! :D There's just so much good stuff around the corner with HF20 and SMTs that it's easy to get excited!
Hmmm. I think the pumps we're seeing now are just individuals from elsewhere (Korea mostly) that are expecting STEEM to see some pumps when SMTs etc launches early next year and so they are looking to take a strong position now and buy what they can at around 10k STEEM pr Bitcoin.
Nothing would make me more happy if there are investors buying up in STEEM because the expect it to rise a lot :)
Can you share an exchange to buy Steem? I'm currently using Bitfinex and ready for a change.
Bitrex.com
Thank you.
very interesting developments with SBD indeed - are you investing money into it too, or just collecting here on Steemit?
I've been buying some on bittrex when I see it flatten out or decline slowly and then set a sell order anticipating a spike. It has worked out every time so far where the bitcoins I put in got sold at 20% increase in less than a week, as the spikes occur quite frequently.
To be honest I don't see any reason for it to go down to a one dollar peg unless the STEEM Stakeholders decides to implement reverse conversion where one can burn STEEM for SBDs, or something else to drastically increase the supply of SBDs.
Right now, there is 3,903,225 Steem Dollars in circulating supply according to coinmarketcap. That is nothing if the Steem Dollar is to serve its intended purpose as a currency fit for commerce in the STEEM ecosystem and the tokenized web with Smart Media Tokens. I'm sure it made sense back when it was created, as the market cap for cryptocurrencies was just a few billion USD and STEEM didn't have that many users yet. At a time where you only had a few web shops selling caps and T-shirts with the steem logo on it, that level of supply was probably enough.
However, with hundreds of billions entering the crypto-sphere, and STEEM being the fastest growing blockchain in terms of transactions, this is simply not enough money if each unit is valued at 1 dollar and many businesses looking to run on STEEM want to use it for commerce. So combine the limited supply with the fact that it is the single best crypto to use for e-commerce yet invented, and voila you get what we see at the moment. If you ask me, we should let the Steem Dollar be "Our Bitcoin" (or perhaps more precisely "our Litecoin" as it looks to be the more useful tool for every-day transactions). STEEM can then be our "mining rig" and DPoS token for the ecosystem while it is a currency of its own.
If the community decides to go that route, I can only see it going up. In which case I would rather be given 1000$ worth of SBDs than a 1000$ worth of Bitcoin (both at the current price) if I was not allowed to touch them for a year.
This poses a problem. Steem dollars should be pegged against the regular dollar. This creates confusing and will hurt Steem in the long run
Only a problem when the token is still marketed as a dollar peg, and payouts displayed on the UI assumes that the SBDs you receive is worth 1$. But I think it will be positive for STEEM if we instead give up on the peg and let it grow.
I see bitcoin as a hoax, its rocket height is illogical, I think it is like a bubble as a day will surely come down rapidly
Bitcoin is a virtual currency and the difference between the virtual world and the real world
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STOPH @fredrikaa. I’ve been looking for an explanation as to how converting SBD to Steem then to steem power affects the value of my account, I think maybe you can provide it. When I convert SBD to steem (let’s say SBD is at $8 and steem is at $2) is there a flat conversion rate that causes me to lose money, or will one $8 SBD convert to four $2 steem? It seems likely the latter is the case because otherwise users would be encouraged not to convert to be able to power up, but I’m not sure. Especially because the wallet page says that SBD are tokens worth about $1 steem ??? I just don’t want to give away money converting- (it’s only now I have any concern about it because I wasn’t making decent payouts before).
People are dumping bitcoins @ ATH and diversifying into altcoins hence the jump in: ETH, LTC, XRP, DASH, EOS, XMR, etc......
It is really good news for all steemians.Thanks for sharing this .
I still don't understand why SBD $10, and steem less $2
Long story short: There is a very short supply of SBDs and someone who really wanted a lot of SBDs for, something, decided to buy a lot. It makes zero sense except for the fact that someone needs a lot of SBDs.
I've seen people suggest that new Korean investors might be part of the equation, as well as the controversy surrounding Tether. Going forward though, once it gets back down to a dollar, assuming it does, I will be keeping a bit aside in case history repeats.
Yes, Korea is the main explanation.
It will be interesting to see how it plays out, if people start hoarding their SBDs once it gets back towards 1 USD, the already scarce supply might mean less people selling rewards -> Lower sell pressure on STEEM -> price crawling up slowly and steadily.
Time will tell :)