Sorry for the eye-catching title but I am curious as to what happens to Steemit after the hard fork. Lately, people have stopped or at least paused their power down and this has resulted in less Steem on the market and according to the lovely rules of economics, drives up demand and value, leading to Steem's positive trend and price of ~$0.2 per Steem.
Since I am always wondering around Steemit, curating, sometimes posting and reading posts, I've decided to look into the hard fork and figure out myself what it is exactly.
In my quest to find answers, I realized, after reading the press release, that the hard fork is actually a new update to alter the economics of Steemit and Steem in general. This will give people the ability to move around their Steem and pretty much encourage short or mid-term investors to the Steem markets to power up and enjoy the perks of Steemit.
Steemit press release said this:
The new structure of Steem lowers the inflation rate and adopts a model much more similar to bitcoin, which encourages participants who don’t want to lock up their cryptocurrency value for long periods of time to have influence in the social network. While all Steem holders will have increased liquidity, the allocation of new Steem tokens to witnesses, content producers and creators won’t change; that figure still sits at 9.5%.
So, according to Steemwhales, only a handful of whales are powering down and since whales power down thousands of SteemPower, it influences the Steem supply A LOT. We are talking about hundreds of Steem a week pouring into exchanges or into wallets and becoming liquidable. This is so far a good sign and with the hard fork, it seems like a decent amount of people are building up SteemPower, which I am doing too so I think we are on the same page.
I think that if all goes well and the community really likes the new Steemit features, Steemit and Steem could prosper and we could be seeing Steem's prices rise but only if all of its users be cautious of Steem markets and value.
Another outcome could be devastation, too much liquidable Steem and within hours, the Steem markets crash. I'm sorry if I scare you but it is the truth, we can all work together and prevent this possibility if we all try but this is truly rare because there is too much at stake. A lot of Steem is at risk of being dumped if this happens and the market cap would be in jeopardy.
Well, I can't wait for the hard fork tomorrow and see what new things come to Steemit and see how everything goes. If you have your own thoughts towards the hard fork or just want to talk about Steem in general, please don't hesitate and comment below. Other than that, if you like this, up vote, if not, down vote. Goodnight!