My Thoughts on Steem's Low Price
I believe Steem's present low price boils down to 2 main factors.
Propensity of market to sell Steem without large buyers, down to lower levels than most other crypto.
BTC market crash in this instance is more severe than the last time Steem crashed.
Concerning #1
One of the reasons Steem does not have large buyer support, I believe, is how it treated investors in the past. It had huge inflation, while its launch was a massive pump and dump situation. After which, inflation created a massive attrition against the price of Steem. The market itself still does not trust the coin in how it trades Steem.
Steem is also a niche coin which people effectively view as linked with Steemit.com ... This means that investors often view it as a blogging project, rather than viewing it as the future of some great new technology, like IOTA is viewed. IOTA is junk technology, but it sells to a fantasy investor about a possible future that could play out. There is a lot of allure to the selling of a coin like IOTA. Steem's sell is a blog, which is boring to the risky investor who is looking for brand new concepts.
Steem has more meat and potatoes, but 90% of crypto investing is about hype and sales gimmicks, not meat and potatoes.
Concerning #2
The normal brutal decline of Steem has been combined with the tanking of the BTC market and whole crypto market. Steem crashes are ugly enough on their own during a crypto bull market. Experiencing them alongside a crypto market crash is going to exacerbate the issue.
Changes to Consider
- SMT's will effect price when they are completed and operational. Eventually, they will weigh-in on the market trading of Steem, and I believe it has already in anticipation of the technology.
- Steem should better incentive investors to own and hold Steem. On paper, investors are incentived against holding Steem because it has relatively high inflation for a number of years (9%+) and pays very little back against the inflation. In other words, the funding of Steem bloggers is really paid on the back of investors who are treated as bag holders for the currency. Therefore, investors bail and let the prices tank.
- Non-Community driven secondary applications utilizing Steem. Many other blockchain projects have an on-going developer budget. Steemit.com is setup to develop (afaik) mainly just for Steem and Steemit.com. It could be useful to implement another well-funded project besides Steemit.com with an assigned budget for them without increasing inflation.
Bold Ideas
Link SMT creation to Steem ownership. Must own 1000 Steem (ect.) to even launch an SMT. This would make blocks of 1k steem valuable, like a masternode concept.
Secondary Token to Steem (using SMT), A token which is supported by the Steem blockchain developers / community, and is airdropped to Steem holders. The point of such a token could be to handle advertising transactions. Implemented along with advertising revenue for Steem blog posts. A cool project creates market appeal and new functionality, by making it an air-drop to Steem holders, it incentives the market to hold steem leading up to the drop. Then the people who are able to hold the most advertising sway are those who got the air-drop. Yes, a bidding market where they pay in Steem/SBD gets the job done, but it does almost nothing towards marketing to the crypto investor community. It's just a new feature. An air-drop gets traders/investors excited about Steem.
In the future, create a protected lending market for Steem/SBD so that people are able to margin trade on an SMT DAX. Such a lending market attracts margin traders and margin lenders, which creates an on-going demand for more Steem. With adequate safeguards and volume, lenders should not lose funds as it works with poloniex. For now, I doubt such an exchange would have the volume needed to bother with doing this.
Private Steem, steem in the future, should consider implementing privacy features. Privacy makes some investors more comfortable holding large sums, without others knowing their holdings.
It is a matter of great concern that steem prices are decreasing day by day. I do not know where it's last and we'll be able to return to our previous state.
However, the issue you have highlighted is very important. I agree with your thoughts.
I think in the short term, BTC weakness is part of it. However, in the long term steem failing to fulfill its vision. (To many voting bots, voting rigging games and crappy posts rewarded well). Part of the promise of steem it to use the free market to find the best content. That part -I fear- is not working.
It's a perspective thing, I think. One of the main uses of Steemit.com as a blog is the high Google search ranking. That alone makes Steemit.com blogging valuable, more valuable than other blogging platforms.
One of my articles ranked on a Google search in the top 4, right next to a Forbes article. I had 4k views before Steemit.com disabled seeing the number of views. I only got paid $14 for the article, but it was worth having that just for the Google traffic and brand awareness I can create.
Combine such high view counts with advertising dollars, or personal marketing of things like paid services you offer, and there is a useful way to monetize a Steemit.com blog without needing upvotes.
As a blogging system, I don't view Steemit.com as a failure, I see rather that many people have unreasonably high expectations when they join Steemit.com, expecting to get paid based on the quality of their content, rather than building a community around their branded blog. And quality content should pay eventually, but 99 out of 100 people want the quick buck rather than investing into their social media. The first dozens of Steemit articles I made, I got paid nothing or a few cents.
Wow. There is a lot of good thoughts in there. I never really thought of it as a Google Ranking Improvement System. I can see your point and as part of a larger campaign, it makes sense. I look at it just as a blog, a small way to get a message out to the world in a public way. You make a great point, that people come with unreasonable high expectations, but it was sold with those expectations. Some of us do not consider self-promotion to be a important. We have have friends who brag about everything they do... even when it is not significant. And some of us have friends that just do it, and don't talk about it. Well We have always been able to "build a brand" or take any website of you tube channel and advertise ourself or create a brand. That was not new with Steemit and that was not how Steemit was sold. Steemit's Magic Mojo, was the free crypto money and the improved ranking that instant monetary feedback could provide. Steemit, is still an interesting platform or connecting, and the high google ranking might indicate there is still high quality content here. But it has been failing to deliver in my opinion.
Sir what do you think, Is steem will make strong root in future?or it may get scour in few many years?
Not many years, end of 2019 or earlier is what I would expect for the next major crypto rally w/ Steem included. I was hoping this fall, but nothing yet indicates that this fall will be the right time frame.
There may be many reasons i am not technically good but what i have observed that the low prices is just because of one reason and that the exchanges don't let people to withdraw their steem exchanges such as poloniex and hitbtc play this game quite often and the people have to suffer in the end more than ten months gone even i can't withdraw my funds from there and in the end people have to sell it at low prices
Yes, it's a factor. Creates distrust toward owning Steem.
that can be clearly seen on the coinmarketcap price differences in steem prices for those exchange
I agree with the margin trading and private steem solution.
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