How To Increase The Value Of Steem - The Ultimate July 4th Strategy!
We all saw the other day, what happens to the value of our posts when the price of Steem increases; it was good, very good. For those of you who didn't realise, Steem rose by about 30% and so did the value of our blogs.
This is obviously a good thing for anyone writing on Steemit, especially as it happened so close to the Independence Day, July 4th payout. Woohoo, we're all going to be rich right?
It can be said that life, is a series of functioning illusions, which help us approximate, what the hell is going on, which in turn helps us to navigate our lives. From the way your brain processes light, sound, colour, movement and a lot more, is just an approximation of the way things actually are.
These illusions aren't just perceptual, they are conceptual as well, like for instance the value of money. If you go back 100 years or so, the paper and non-precious-metal, money that was being spent, was based on the gold standard. This meant that the paper in your hand, represented a proportion of the gold held in the country's gold reserves.
Around 1933, the American President, announced that Dollars would no more be held to the gold standard, probably about the same time people were realising that there was much more money floating around, than there was gold.
Before this point, it could be argued that money wasn't illusory, that it had a very real value, however since then, you can boil down its value to, supply and demand.
If more people want dollars, or sterling, or euros, than are available on the markets; then guess what? The price goes up, if there are more people selling a currency, then, you guessed it; the price goes down.
July 4th is looming, it is happening on Monday, the big Steemit payout, there will be no doubt, many Steemians, including myself, who will want to realise the 50% they are getting of their blog value into cash. However this may set up a very unwanted scenario.
Because if $500,000 worth of Steem is suddenly available and there are only $50,000 worth of buy orders out there, then the price will fall and it will fall dramatically. In this scenario, you could see the value of your blog and therefore your Steem Dollars halve.
How can Steem Dollars halve when they are always worth $1?
Steem dollars are made up of Steem tokens, this is the way that the SD is kept at 1 USD. So if 1 steem token is $0.50 then it takes 2 steem tokens to make up a Steem Dollar, if they cost $.025 then it will be 4 Steem tokens to the SD.
There are 21 times more of Steem tokens than Steem Dollars, this means that Steem could fall to a price of under $0.05 and still be enough to peg the SD to the USD. However the more tokens that are needed, the less Steem is worth, which in turn affects the value of our posts.
For me what needs to be done, is we need to hold off on selling our Steem, straight away, I'm NOT saying don't cash out. By all means, take your Steem of Steemit and stash it on the Bitrex exchange, however, don't try and sell immediately.
The reason for this, is we want to create a demand that is bigger than the supply, in other words we want to keep things just as they are. At the moment, it is very difficult to purchase Steem, as there is hardly any available, that isn't being held by us.
So hopefully, there are lots of gagging traders out there, who want in on the action, what we have to do, is keep them hungry.
So even if it's just for 12 hours, don't put out your sell orders, the more people do this, the higher demand will go, the higher demand goes, the more your Steem will be worth.
For me the ideal time is no less than 48 hours, in that time, Steemians will be reporting back to the wider world that they've been paid and that Steem is great. As they come, the demand will rise and rise, but the supply will still be short, slowly rising, getting people salivating, perspirating, dying to get their hands on Steem!!
If this happens as such, you might get some of us, in fact you WILL get some of us, reconverting back to Steem Power because we realise that cashing out might not be in our best interests.
Remember, the payout is taken from 10% of the market cap, at the time of writing the Steem market cap is $16 million, with a market volume (how much Steem is being traded) of just $4,458.
So come July 4th, if it stays roughly the same, there will be around $1.6 million, worth of Steem in our pocket. If we all try and sell at once, then the volume will go up from a few thousand to over one million. Just like when you go to buy something and they say get it while stocks last, they are trying to conceal from you that there are shit loads of their product, because that devalues it in your mind.
So people need to know that there is over a million dollars woth of Steem out there, but the volumes are relatively low. Then pow over the course of a week or so, we can keep the price of Steem high and what's more, peak the interest of would-be speculators.
Of course you could be reading this and thinking "yeah right, you just don't want me to sell my Steem, to clear the way for you to sell yours."
There is absolutely nothing I can do or say, that will shake that thought from your head, because that is classic game theory thinking. Do it to others, before they do it to you.
You're right, you shouldn't trust me, as I might be trying to game you, however, you know this is a good idea and makes perfect sense. So what should you do? You should put buy orders for no more than 25% of your bounty.
What does that do?
It enables you to tell the story of how you joined Steemit, wrote, posted and voted for however long and then got paid, in real cash. This story will spread and people will come to Steemit and speculators will go onto the exchange.
When a speculator comes onto the exchange and sees that only $400,000 of a potential $1,600,000 is on the market. That is going to make the speculator want more; this will be our equivalent of shouting;
BUY NOW WHILE STOCKS LAST!!!!
We are the custodians of the supply, let's create demand together, we've stood together for this long, let's keep it going through July 4th and beyond.
Together Our Steem Power Is Unstoppable!
Till Next Time, Keep Steeming, Keep Dreaming.