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RE: The Economics Behind the Steem Dollar Arbitrage..
Ok, just to boil this down ...
You are saying that the price of STEEM is nose-diving in a near-straight down trajectory 'because' the people that got rich off this shit see that it is in trouble, and are cashing out as much as possible, as quickly as possible, and that is why the place does not 'feel' like one with a rapidly growing and enthusiastic new membership, but more like a party where the DJ has stopped spinning, and everyone is standing around wondering what the fuck is going on!?
Is that about right?
this post gets an A+
Nope. That is certainly not what I'm saying.
Duering distribution phase (which we are in) there is a capital restructuring ongoing, increasing sell side volume and putting pressure on prices.
This is a short term phenomenon which will recorrect itself as we move toward the 90% Steem Power to Steem ratio, as jl777 posted above (whose analysis seems pretty good to me)