RE: Let's turn the Steem Price around
Regards, my brother @achim03
We are all concerned about the fall in cryptocurrency prices in general. Yesterday there was a general fall phenomenon of all cryptos, large and small.
As you put it, this is a problem of trust. I believe that no currency has gained enough trust in its users. Even BTC that everyone sees as the unbeatable giant, It had a high circulating market when its value plummeted in Q2 2017.
PowerUp is the maximum demonstration of trust to steemit. When we increase our stake we are committing our resources in a plan of at least 13 weeks. So if we all powered up we would be showing greater confidence and in theory there should be a recovery.
I have a question for you:
Increasing the stake in the tribes, does it cause the effect of trust towards steemit? That is, is it also beneficial for the recovery of the value of the steem?
Your friend, Juan
Hi @juanmolina,
Thank you very much for this interesting comment.
I had troubles to understand for a long time what the effects on tribes are towards the steem price. I came up with a theory that is maybe not 100% correct:
Even if tribe coins are handled in steem, investing into these tribes is actually taking money away from steem. In the past people would have powered up in steem and now they are powering up the tokens. This means that indirectly money is going out of steem.
Let's take an example:
A new tribe is created and people invest into it. They use steem to do so. In fact they simply transfer steem to the creator of the token. If this creator now has lost trust in steem he can take the steem away and exchange it into dollar or other cryptos.
So as a conclusion I believe that investing in tribe coins weakens steem additionaly.
Best regards,
Achim
Just one question @achim03, @juanmolina
Assuming that "investing into these tribes is actually taking money away from steem" would be true, shouldn't we also consider a bit unexpected scenario:
Shouldn't that mean, that tribes are creating buying pressure? Just wondering.
Yours
Piotr
This is a very interesting question. What I struggle with is to see how these tribes add new value in economical terms. Before the tribes I got an upvote which was worth something in steem.
Now these tribes can give additional value to my posts but at the same time the value of the steem upvote has diminuished. When we consider these tribes, their token has often been created from scratch without any inner value. Then these tokens have been bought with steem. Instead of powering up steem, we now power up in these tokens.
At the end of the day we get a similar post value if we add steem and all the tokens together but there was no "new money" coming in. In a way the tokens have diluted steem.
What happens if people become aware of that? I think that some might realize that most tribes don't offer an added value and they might not want to invest into it anymore. They would probably start to sell them off but would they buy steem instead?
First of all, I apologize for not having a fluent english but i would like to ask a question. It has been requested from the Spanish-speaking community maintain the token of the tribe, it is suggested to make power up or stake, invest in it, but not sell them but, based on what you raise, would it be better to change to steem and invest in this last because it is the currency in which we continue to trust? What would be the suggestion based on your vision? Thank you very much.
Hi,
Thanks a lot for your comment. Your spanish-speaking community is right to ask not to sell and to stake the tribe coin. This is true for tribes but this is also true for steem. Before investing in any tribe, I would definitely make sure that I have steem power first.
Many thanks for your valuable response, grateful. Congratulations on its publication.
Interesting analysis
I'll think about it.
Thanks friend.
Thx for this interesting (and logical) explanation @achim03
This vision has a lot of logic by the relationship as close as possible to the published content.