Take everything negative that you may hear or read about the price of Steem, and forget about it.
Done? Good, now I can show you why.
Below are some altcoin charts comparing each to the price of Bitcoin for the last year.
I could paste a lot more charts and the pattern would still be consistent.
There are a few things here to be aware of:
First, Bitcoin is in an accumulation phase, pulling in capital from all directions. This is pulling the relative price of alts down as demand focuses heavily on Bitcoin.
Second, the peaks and valleys over the past year can be ignored, because most of the relevant altcoins have devalued by about the same ratio.
Third, altcoins are all losing volatility as their price flattens, with exceptions like Monero and Ethereum Classic that are still finding their bottom. I'm not saying with absolute certainty that altcoins have found their bottom, only that it appears with many altcoins the downward pressure is finding a balance with upward pressure on price.
These points illustrate that the price of Steem has not been doing anything unusual in the past year, but has followed a larger trend that is affecting many altcoins as well. If you look at each altcoin in a vacuum and ignore what is happening in the broader markets, you might think that Cardano had a falling out with investors, or that NEO had a failed rally and got dumped.
Ignore the highs and lows and focus on the larger trend. The price action for many altcoins over the past year has been little more than white noise, Steem included. While each coin has its own story--and traders and investors love stories--the broader picture that I see is that the story is all over in Bitcoin right now, along with an unwinding world economy and the deleveraging phase of the 100 year credit cycle that we are in now.
So if you were worried at all about the price of Steem, you can now take a deep breath and relax, and know there is nothing to worry about at this time. In fact, the only thing I worry about is how much Steem I can buy before the altcoin markets start getting moving, but of course I do so knowing that my investment could vaporize if something unexpected happened with Steem or with cryptocurrencies in general.
You always have to be prepared to lose everything if you want to be successful in any area of life. Most businesses fail because the owner was unwilling to put their money where their mouth was, and not necessarily because the business was a bad idea. The same goes for relationships. If you cannot give yourself fully to someone else, or they cannot give themselves fully to you, then your relationship will eventually fall apart. This is just the truth.
Please also remember that nothing ventured is nothing gained, and so we have to be willing to risk a little to be something more than a dumb consumer, and we need to have patience too, because as Warren Buffet once said:
The stock market is a device for transferring money from the impatient to the patient
so have patience and don't worry about the price of Steem. It is good that the price is low, because DApp developers and new content creators can get on board now and profit later when the price goes back up, even if their DApp is a flop. The sun will come up tomorrow at a specific time, but the price of altcoins will rise when they are ready to, and when that time comes I expect Steem to really make waves around the globe. But, patience is the key, and the more time Developers have to get their DApps up and running smoothly, the better Steem will be when the attention shifts from Bitcoin back to altcoins.
Thank you for stopping by and reading. Let me know what you think in the comments below.