July 4th Price Action

in #steem4 years ago (edited)

Many people are speculating that the price may "fall" as 2.5% of Steem (over $500,000 of Steem Dollars) is made liquid. I would like to offer some additional perspective:

  1. The Supply of Steem Dollars is limited and they pay 10% interest.
  2. You will get more for your money by selling Steem Dollars for BTC than by Converting to STEEM and selling STEEM.
  3. A large percent of Steem Dollars are being earned by Steem Bulls

My conclusion from this is that the July 4th date will do little. A week later some Steem may enter the market from people powering down, but that will amount to less than $10,000 per week even if all Steem Power was powered down. Those who want to sell Steem will find they can get the most liquidity by selling for Steem Dollars and then selling Steem Dollars for BTC.

In effect, I see the July 4th date as being relatively smooth in the markets (aside from purely speculative moves).

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Only time will tell. :-) im definitely in the Steem bull camp!

I plan to use my STEEM Dollars to provide liquidity to the internal marketplace and take advantage of the 'maker' fees.
In this case if i commit my STEEM Dollars to the order books on the market does it still attract the 10% interest rate?

I will be using my Steem Dollars to add liquidity to these markets on BitShares:
open.STEEM : ALTCAP
open.STEEM : open.BTC
open.STEEM : BTS
altcap
I hope there will be a Steem Backed Dollar (SBD) UIA on BitShares to trade against bitUSD and bitBTC

The correct term is Steem Dollar (SMD). Or at least that was used in the whitepaper.

We changed symbol to SMD

We're changing it to SD. Short and simple, and matches the two characters of SP.

by selling Steem Dollars for BTC

Where will people be able to do this at on 7/4, Blocktrades or internally on Steemit?

Hopefully all of the above plus Bittrex and other exchanges!

steem is only printed when SBD's are settled. so that is what we have to look at rather than the market for SBD I think.

@dantheman, yes Dan, smooth like a mushroom cloud.