Some thoughts on Steem vs Bitcoin - and New Camaro

Bitcoin goes to five thousand!!

- Sweet ride for $5000! Where can I get one? -

We are all happy that the price of steem is stable, but how stable is it?

What is steem worth in dollars?

Over the years I have traded, I have learned that alt-coin prices generally fall when bitcoin prices rise, and vice verse.

Dash Reacts Normally to BTC Price Drop

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Here is a classic example from today. Dash prices rocketed on a $160 drop in bitcoin value. Most other coins will likely have reacted similarly. The reason for this is because coins are priced in bitcoin. If everyone is buying bitcoin due to some change in adoption, there should be no appreciable difference in the value of LTC, NMC, DASH, or any other alt-coin. The market value of bitcoin has gone up. Therefore, the price of alt-coins as seen on Bitrex or Poloniex should go down, but the dollar value should stay the same assuming the value of the dollar stays the same, of course.

In this case, bitcoin dropped nearly $100 per in a short period of time. The dollar value of Dash stayed the same and while

Let's assume the dollar is stable for now. Here is the steem price in dollars throughout the bitcoin price swings of late , well, cents actually. As you see, I wrote down the prices that I got from Poloniex, multiplied it by the bitcoin price as it went up and then down, which gave me the $0.?? dollar value. I like to deal with facts, so I do the math myself rather than using Steemit's price average over the last week figures.

Here, you see that the steem price has actually fallen over two cents at the same time that the bitcoin price fell.

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Steem as a digital currency doesn't seem to fit the same norms I have used to since 2013, probably because it's only a few months old, or maybe because the developers make wide swings in the steem economy. Either way, as this posts makes clear, the price of steem looks stable on a chart. A variation of only 0.000006 seems great when looking at a chart, but but the price moved down nearly the same percentage that bitcoin did in dollars.

The good news is that all digital currencies will be increasing as the months pass, when priced in dollars. The bad news is that when bitcoin hits $5,000 and the celebrations turn to hangovers, what will you be able to buy with $5, 000 dollars?

When I was a kid, you could buy a new Chevy Camaro for $5,000 and the value of a Camaro was greater than, or equal to good transportation that you could count on for 100,000 miles. Today, you can still buy a Camaro, and it will likely go for 100,000 miles, and you can still get it for $5,000 dollars because the value of a new car has not changed. So what has changed? The value of the paper that we call dollars.

Though silver prices are not where they should be, and the dollar is supposed to be "strong" right now, the fact remains that I could take roughly $5,000 (silver) x 16.66 (each) = $83,300 (paper) which can buy the most kick-ass new Camaro you could ever want.

Camaro Image Credit

And those, my friends, are the facts. Thank you to all my followers,
@Sponge-Bob