RE: What caused STEEM to get dumped? Why I think the worst might be over
Very optimistic @culgin
However I'm still worried about potential selling pressure coming from all those accounts, that started powering down lately (like chbartist and quite a few others). Right now all that powered down SP is turning into liquid steem and probably in few weeks those users will come back to sell whatever they powered down already.
In crypto, we should not just look at price in terms of USD, the BTC and ETH comparatives are actually more important
You nailed it. I wonder who so many people actually compare STEEM to usd. And at the same time same people compare Steem Engine tokens to STEEM (instead of usd). Isn't strange? :)
Here is the unpopular opinion, I think this is because the myriad of Steem tokens were starting to dilute STEEM price at that time.
That's also my opinion. However I've read comments saying that trading STEEM to PAL or LEO (example) is not going to bring price of STEEM down in relation to BTC, ETH or any fiat. And it kind of make sense. So I'm seriously not sure what to think about it.
Yours, Piotr
I actually beg to differ. A coin or a token is just a representation of point-in-time value. If no new fiat money is coming into STEEM coin (i.e. the value against fiat is constant), but there are new tokens competing for the same pool of value, then STEEM price will drop as some value will flow into the tokens
In order not for STEEM price to drop, there must be fresh fiat money coming into STEEM to even out the effect of the new tokens
I find myself needing to beg to differ with what you have begged to differ on....
I would argue that Steem Engine has only been a positive for STEEM and that it might have performed even worse than it has if it had not been for the existence of SE tokens.
Bitcoin is almost useless. Its not scalable for a real global marketplace, the Lightning Network is a joke and fees can get to outrageous rates. But, its still "King" in that its the easiest cryptocurrency to obtain for fiat currencies. In a recent tweet by some BTC maximalist he asked, "What brought you to buy your first bitcoin?"
The most common response was, "I bought bitcoin to buy altcoins."
So, while Bitcoin is not useful in the wider economy, it is one of two (ether is needed for most dapp tokens) currencies needed to own a share of the blockchain industry.
STEEM is now benefiting from that same privileged position of being a currency for buying cryptocurrency. You need to have STEEM in order to buy SE tokens, and you also need to have a Steem account. This creates a whole new form of use for STEEM that did not previously exist.
Useful or not, remember that value is just a perception. BTC was launched for exchange of value, but it slowly evolved into a store of value. It may not be the most convenient, most scalable or fastest mode of exchange, but people are still keeping it.
Yes, there are people who buy BTC and exchange it for alts, but there are also people who buy it to hold it. In fact, there are still many people out there who have never heard of any altcoin.
I fully agree that STEEM has now more utility with the launch of SE tokens. Since the only way you can get SE tokens, is to get STEEM first. However, that is only true if fresh money from outside the STEEM ecosystem is drawn in. I think this did not happen when SE tokens were first launched since the main target audience during the launch was really just Steemians.
All these being said, I think the SE tokens market have stabilized a lot lately and now a good number of them have their own Tribe interface. Which is good because they now can start to draw in new users outside the ecosystem. In addition, tribes also motivate existing users to stay. Personally, I am enjoying posting to a few of the tribes and it is really fun to see my SE tokens grow.
Again, great comment. Thanks!