What is Driving the Price of SteemIt Downward ? Answer Questions, EARN Steem!!!
SteemIt Questions:
1.] What will cause the price of Steem to go higher, both long-term and short-term?
2.] What's driving it down now?
3.] When will this trend reverse, so that Steemit can be a legitimate way to earn enough money for food and housing, for people such as artists, writers, philosophers, etc?
Actually spending time promoting the platform outside of steemit. How many people in the world even know steemit exists? The answer to that is very few. Continue working on efforts to make the platform easier to use, create a marketplace where goods can be purchased with steem or SBD (we seriously need one). Make it easier to get FIAT into the steem ecosystem. Right now everything must go through bitcoin, would be nice to help remove the middleman.
Uneasyness as to the future direction of the platform. Large initial holders selling off some of their holdings. Lack of outside interest. Not enough new user growth to drive investment interest. Not easy enough to get money into the ecosystem.
Yes, in time. These things all take so very much time.
I agree w/ a steem market place. I know of GiftCard ,but yes some sort of marketplace would be great. I agree. The entry into Steem is not easy. FIAT to Steem would help boost this quickly.
Seems like this is what everyone is saying here. A lot of powering down and power users leaving.
I want to add an additional note to my comments on the power downs: one thing you have to remember is that for ever seller there is a buyer. Lower prices lower the threshold for new users to acquire steem, and turn it into steem power. More users with more steem power makes the reward system work much better. So this price derease may actually be very very necessary for there to be a future of steem and steemit.
You bring up a good point in that the price of Steem and it being so low lowers the barrier of entry for new people to power up with SP. I guess the way to see if that is true is to see how many # new users have joined. I guess @roguescientist84 would be an example.
What we would need to look at is the number of new users who have joined, and also the proportion of them that are powering up any amount of steem power purchased from either the internal market or external markets. IE is the lower barrier actually translating to increased distribution of steem?
What happens when the price goes back up and the world still hasn't caught on to steemit? The price would have to go down again, the distribution issue is a perpetual one and you can't solve it by decreasing the price of steem.
Well thats a good point. However as distribution becomes much more widespread (as opposed to fairly centralized as it is now in the hands of very few very large holders) additional distribution will become much more organic through author rewards.
Low price does not solve the issue of distribution, but it DOES make it easier for smaller holders to acquire a moderate vest in the site.
What happens when the price goes back up and the world still hasn't caught on to steemit? Who is to say that will happen?
Helping each other with money to support STEEM specific entrepreneurs to start business.
Lack of believe and support for entrepreneurs. Cold hearted attitude. No help from rich to poor.
When love and team spirit and will to support individuals to start a business will dominate. An alternative to government and banking not only talking.
Thank you for your answer! excellent!
Hard to fault anyone though, I'm sure most have experienced getting burned and played out before, even from friends when it comes to business.
We have the reputation system to evaluate if it is worth the risk.
Question 1.
Answer 1.
Steemit must get more people participating on this platform . The participation has been about the same for the last 6 months.
Steemit needs to bring in money from advertisers and investors . Advertising revenue would help bring investors if the revenue was distributed accordingly to the amount of Steem Power an account holds . The more Steem Power you hold the more of the profits you will receive. This would be a great incentive to buy Steem and power up.
Question 2
Answer 2.
No reason to invest right now . Fundamentals need to improve . By that I mean more participation on the platform .
And of course to much Steem is being powered down .
Question 3.
Answer 3.
Once the Power Downs have slowed to a crawl and Steemit has found a way to bring in outside money . And one way to do this is ( I refer you to my answer 1 ) .
On the flip side to integrating ad revenue, if Steemit stays ad-free it can use that as a differentiator. That is one reason Medium might want to consider integrating with Steem. It was built with the purpose of keeping ads off the platform, and attracts those types of users.
I think the best route for Steem is to make itself attractive to the existing social media networks to integrate, and absorb their user bases.
Medium needs to consider doing something with SteemIt. I agree. I know they are looking for ways to monetize their platform.
I agree. Someway to integrate into existing social media networks is key. More users the better.
Well thought out answer thank you!
1.] What will cause the price of Steem to go higher, both long-term and short-term?
I. More users, e.g. more recruiting of new users. We should really push Steemit on people that create.
II. Advertising.
III. A mass exodus from other Social Media platforms when people get pissed off or fed up. Facebook has bee chapping hydes for a while with its policing and name restrictions. Steemit should take full advantage of FB mistakes.
2.] What's driving it down now?
I. I am new, but I am guessing lack of new users.
3.] When will this trend reverse, so that Steemit can be a legitimate way to earn enough money for food and housing, for people such as artists, writers, philosophers, etc?
I. See Answers to #1. Ha!
Reminder: the most popular/correct answer gets 75% of the reward of this post.
Are you really a rogue scientist? :)
In many ways, yes. However, the word rogue has a broad definition.
How Rogue are you ?
Oh, depends. I prefer this definition: A person or thing that behaves in an aberrant, faulty, or unpredictable way.
Well from one scientist to another. Welcome to Steemit.
Thank You! So what is it you research? I used to work with proteins, a lot of Enzyme Kinetics!!
I am also an enzyme kineticist! Small world! I currently work on DNA replication enzymes. Though that may be changing in the next few months.
Out of curiosity did you focus on steady state or transient state (more single turnover/ burst) analysis of enzymes?
More users and use cases. There's currently no mechanism to consume steem. There is a huge firehose of steem being made each day and no drain for it. The only use cases for it at all are directly related to a nascient social network that very few people care to use because of a number of reasons.
This is going to sound flippant but it's true, the price is going down because people are selling, that's the only reason. If everyone stopped selling steem and just powered up, the price would stabilize almost immediately. Unfortunately instead of changing the power down time to something like 5 years or more, which would have kept a ton of steem off the market, they shortened it to 13 weeks. This has caused a massive amount of steem to flood the market and it literally has nowhere to go. We're seeing the effects of that now.
It won't reverse. At least not in it's current incarnation. It would require the currency to become attractive, but honestly while SBD is very attractive, Steem is not. There are a number things they COULD do to reverse this trend, but it's unlikely they will but I'll list them here.
Implement fees for everything. Make those fees reasonable but a minimum of 0.01 STEEM. Then just burn the fees. This would reduce the supply and it's low enough most people aren't going to care.
Allow the "promote" button to utilize steem. Right now if I want to promote a post I have to dump steem into SBD which pushes the price of steem down further. If I could use steem in the promote function, not only would it burn steem thereby reducing the supply, it would give a use case to steem it doesn't have right now, i.e. advertising.
Change the rewards structure so that every vote is worth exactly the same amount. By doing this, it would reduce the alienation a lot of people feel when they see 500 upvotes on a post it's barely worth $1.00 It would also mean that people would be less likely to flag for "overpayment" reasons. It would be trivial to change the current system to give a fixed amount per vote and just let SP determine how many votes a person gets or how often they vote.
Stop paying people in steem or SBD. Payouts should be straight to SP only. This would keep new steem from entering the market and would allow people the opportunity to draw down when they actually need it rather than turning this into a "daily bread" situation. In the meantime they would be building their influence organically and could enjoy the benefits of seeing their upvotes increase in value as time goes on. Right now most folks just cash out as fast as they can and that's putting some downward pressure on the price too.
I like the idea of using Steem for post promotion and keeping SBD as a remittance/payment method.
Agree on using Steem for promotion. I also think promotion needs to be overhauled to bring promoted content out of its segregated tab and into positions within tag feeds or sidebar areas.
I wouldn't want to see fees on everything. I think a good place to start is when community features are launched. Communities should have an upkeep so that dead ones are eventually pruned. They could also pay for certain page features and benefits. I kind of see the guild structures that evolve in online gaming as an example. These payments could be initiated with the rewards split features that are upcoming. Posting within a community would essentially result in a tax set by the community to pay its upkeep, improvements, and pay the community managers and moderators or fund nonprofits and charities that could set up shop.
There are more users buying steem than authors cashing out. The price is going down because early adopters/miners are cashing out, not authors. When they are done cashing out the price will be back up.
Locking people's money is not going to increase the price, it is just slowing down the price discovery process, The reason the price has been on a constant down trend for more than 6 months is because users were not able to exit quickly. If people could cash out fast only strong hands would be hlding steem right now and the price would have gone back up already.
How do you do that without people abusing the system? Also there would be no point of buying steem power if every votes were equal.
You require a minimum amount of SP to be earned before allowing an upvote to be worth anything, then you scale number of votes by amount of SP held.
Of course there would be a point. The primary point being you could vote on more things.
But also if there were a steem burning process it would be very, very helpful because it would raise the price of steem and thus the dollar value of each individual vote.
Long term: Convince your family and everyone around you to sell their houses and buy Steem
Serious answer:
Get stuff done for mass adoption and then go into bigtime marketing for a) people to join, b) people to accept steem
Well thought out answer thank you!
I´m very new here on STEEMIT and it was a very motivating start.
But sadly, the deeper I dig into the Steemit construct, the more questions appear and the less motivating is the whole thing .
I want to ask the STEEMIT-pros some newbie questions.
1.) 99% power in the hand of 1% ?? really ? We have that already in real life. We do not need a Blockchain solution for this scenario were a few rule the 99% and a scenario based on this extreme inequality will fail for 100% over the long run. If Steemit is not perceived as fair and balanced it will drive people away and the value of STEEM will continue to fall. Also the fact that 99% of users have practically ZERO power is frustrating and destructive in my eyes. I had the honour to catch some really good original stories about this from @KrNel who really seems to care about fairness in this cryptouniverse.
Maybe I miss some important details because it´s too much for beginners so I´m highly open to get it right from some STEEMITsenior member: steemD, steemvoter, steemchat, steemwitnesses maybe its just to complex to make a statement like this for me newbie.
I am glad to get any answers to my first impressions. Thanks for taking your time.
2.). How can a bot like steemvoter get this enormous amouts of $$$ for every and each posting ?? I mean it´s a bot software making zero content inviting to collusion on a external platform, where if i want to join i have to grant one of my votes daily to the bot itself as a primary rule. ???? +Every day it´s 30+$ for a bot posting the steemvoter guild result ( the whole steemvoter concept could be seen as unfair collusion by some people - kind of OPEC(oilcartell) in the blockchain world? ).
conclusio ad sensum for me: If I cannot compete with bot-software and external "collusion-like" power concentrations as an artist and content producer I maybe will ask myself over the time, why i should stay here and upload original content ??? this leads to my second question: Plagiatarism
3.) I have seen users who posts a lot. but 99% of these posts are marked by cheetah/plagiat-bot, but still making full $$$$ and full reputation. I do not understand the concept of cheetah. It seems that cheetah (superb good idea) has ZERO effect on reputation and reward$$ and it seems like it´s much easier money to just copy paste a lot elsewhere rather than creating real new content !
To a couple of your points...
The 99% figure is a bit misleading I think. A large chunk of this (the top 3 accounts I think) are in the Steemit corporate account and the accounts of exchanges like Poloniex and Blocktrades. These accounts are largely non participatory in the network and aren't draining or influencing the rewards pool. In the case of exchanges it's really a collection of smaller users currency while in transit. In the case of the corporate account, it funds development and furnishes things like the free Steem at signup I believe. There are whales in the ocean, but the imbalance in power is largely aggravated by the fact that larger stakeholders are inherently more active, while all the minnows power often sits idle in inactive accounts.
I think Cheetah does the right thing by bringing attention to the content it does, but only taking action on extreme cases. It's up to us to downvote that content if we feel it is not good.
Those may not really be answers per se, but just echo the sentiment that a larger base of active and engaged users will cure a lot of ills.
thanks for information. always good to hear different points of view. And you are right, some huge players do nothing good/bad like poloniex..ect. I just need more time to check all the details in this Steemit universe.
https://steemd.com there will be or questions :D that is the block side of the chain, you can see the transactions between accounts(just add the name) also you can see what gets posted another good site is steemtools.com
thank you very much for the kind help
If you have questions feel free to ask, the welcome page is a great start but if you want some heads up on the goings on here feel free :) I can link you around some of the interesting posts and people(personal interests)
We need to lobby to get our Steem integrated in popular multi-currency wallets like Jaxx, Exodus or the Ledger Nano S.
It will give people more control due to the fact that for example Jaxx and Exodus both include Shapeshift which enables users to quickly convert from one currency to another without any exchanges. This will increase the velocity of one's currency.
yes agree. would be sweet to have it in exodus. good luck for this :D
I have requested it in exodus, they have looked at it but it is not on their roadmap, if people keep requesting it may get some attention, particularly when there are changes to the code base, like after a hardfork it might give them another reason to look at it.