How - And To What Extent - The Bitcoin Correction Affected STEEM?
At the current moment, almost all alts are trading through Bitcoin. Very few of them have direct gateways to fiat, so they're initially sold for Bitcoin, then Bitcoin gets sold for fiat. STEEM is no different, you need to go through this process if you want fiat for it.
For this reason, every Bitcoin price variation has an impact on STEEM. Today's drop made no difference. But since I was curious to see the extent of this impact, I made a few calculations.
Bitcoin traded at a max of $19,991 a few days ago and it sits now at $13,350, a 66% devaluation.
In fiat, STEEM dropped from $4.14, a few days ago, to $2.81, at the moment of writing. That's a 33% devaluation.
But in Bitcoin, STEEM traded at a max of 24,806 satoshis, and now sits at 20,604 satoshis, which means a 17% devaluation.
In my opinion, this shows a very loose coupling STEEM - Bitcoin, meaning STEEM is way more independent from Bitcoin than its price in fiat may show.
Of course, everything is continuously changing and these numbers are applying only to the current moment. Tomorrow Bitcoin may plunge or skyrocket again, who knows?
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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@dragosroua i noticed the same si de aia am cumparat mai mult steem decat orice altceva, peste 35 % restul merge pe omise go , iota, eos, si altele :) in rest hai romania
Just for information: at OpenLedger DEX you have a Market Steem/bitEUR or steem/bitUSD, so you don't have to do the intermediate steem/BTC step
Cheers
Thanks for that, but the fiat gateways are closed for some time on OpenLedger. So you can exchange STEEM / SBD for fiat, buy you can't withdraw it. Please correct me if I'm wrong.
Really? on Bitshares you can use the openledger transfer service or am I mistaken?
Looks like they're currently under maintenance.
https://blog.openledger.info/2017/12/21/maintenance-works-are-finished-4/
Edit: and it's not necessary to actually take it to fiat since BitUSD and BitEuro are pegged equivalents.
As always, very insightful @dragosroua. Cheers!
Besides the loose coupling you mention, I would also posit that steem will continue to strengthen against Bitcoin. Hopefully Bitcoin continues upward and they both continue to rise indefinitely!
Yeap, that's the best option :)
I was wishing for STEEM to drop more rapidly compared to other cryptos so that I could buy more STEEM from those cryptos :) Maybe the reason STEEM does not drop so rapidly is because it has value beyond just storage of value, like I mentioned in this article of mine, https://steemit.com/steemit/@hmushtaq/why-steem-is-such-a-good-currency-to-invest-in. By the way, during all this bloodbath, I was also quite surprised to see Electroneum holding its ground so well!
It does have value beyond just storage and that is because of it's power down payment system and it's interest rate. That makes it extremely profitable to hold and earn. It is designed in such a way that you can make a living and grow long term wealth as long as you corporate with the system. That is why you will never see a huge sell off.
to be honest i guess it didn't loss that much this time otherwise we might have seen steem under one dollar or near
Steem has generally been less tied to the BTC price than other coins, right? We saw our position in the market cap list go from 20th to mid-30s without much of a change in our actual token value. This seems like maybe another chapter in that story.
Could be the result of Steem having actual, real utility. People are using it to do real things - so the value is perhaps more derived from that, and less from spillover BTC hype like other tokens.
A lot, lot, lot of top tokens are entirely based on Bitcoin hype and a view of the future - Cardano is a recent example of the hype machine exploding on a seemingly random token. Steem meanwhile just keeps trucking with some of the most activity out of all blockchain projects worldwide.
That's my impression too. not only it has real value, but the entire "minting" process is way easier. So people actually understand how it works, and that you don't need expensive equipment and a lot of tech knowledge to generate some coins.
You know I notice the same, but I dare to say that you are forgetting to consider SBD for the calculations too, even though Steem drop was less, I think it was because of the presence of SBD and SP.
It will be nice to see how those two were affected by the drop in prices.
SBD plays an important role in this equation, I agree, but I don't think I know how to weigh it.
Haha yeah me neither, i don't know how all the pieces fit together, but at least we agreed that they affected each other some how.
But what I know is that the SBD prices took a deeper dive compare to Steem, actually, I am very surprised that the decoupling between SBD and Steem, when I saw the prices fall I was sure Steem will plumed too, but nothing of that sort (end of the world) happen.
Now I am very interested in what the future holds for us.
re: SBD / STEEM decoupling, the price feed bias set by witnesses which resulted in an increased supply of SBD may have had an impact on this.
I personally can not wait for Steem and SBD being up on the USD market, but until then the drops and rises in BTC don't worry me too much as I still see that many of the people who sell off their BTC are reinvesting in other coins and tokens and as such increasing the demand for them.
So it all kind of works out at the end of the day, Steem is definitely a keeper, no doubt about it. So far from what I have seen it has survived all the forking forks of BTC and is still alive and kicking hard, so there should be no doubt in anyones minds as far as Steems future goes.
Again, this is just my opinion based on what I have read and seen about countless other Cryptos out there.
Steem and SBD should in 2018 be traded direct for USD, especially after the release of SMTs.
I can see it happening!
This would be really huge. But I don't think it would be that easy...
Not easy, just inevitable if we keep expanding and growing at this rate!
Well Done Dragos... Thank You for Your knowledge/experience/explanations...
...especially as it pertains, to Steemians, Steem + SBD in this Post.
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BiG Kudos to You Dragos !!... UpVoted + ReSTEEMed @ 2:22pm EST !!
Cheers !!
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I'm sure once bitcoin settles down, alt coins will start pumping again