STEEM Below $0.14 USD, SBD Below $0.65 USD

in steem •  2 months ago  (edited)

A Major Sell Off Is Afoot...

I don't know what it means.

I don't know why it's happening.

I'm not particularly alarmed by it, since it appears all of crypto is getting hit, and EOS is down over 22% at the time of this writing.

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What does bother me some is where SBD is right now. Coin Market Cap has SBD at $0.647811 USD. SBD has been steadily trading well below it's supposed peg of $1 USD, and internally, as far as I know, it continues to be at $1 USD. That can't be good, can it? SBD Debt Ratio continues at 10%, meaning liquid STEEM ratio is at 100%, and I'm wondering why I haven't seen anyone talking about this?

Screen Shot 2019-09-24 at 8.08.23 PM.png

Maybe I'm not following the people who have been trying to draw attention to it. And maybe the folks I'm following aren't following them, either, or haven't resteemed the posts, anyway.

Screen Shot 2019-09-24 at 8.08.02 PM.png

As far as STEEM goes, if you believe in it at all, and if you have any disposal income at all, and can get through the exchange hoops without having your money tied up for a week at a time, STEEM pricing just keeps getting better and better.

If you think the sky is falling on STEEM, don't have extra money to spare, or don't want to go through the hurdles and obstacles I seem to need to do just to buy some crypto, any crypto, let alone STEEM, well, I can't say that I blame you for holding back. We all have to do what we feel is right, and sometimes that means missing out on an opportunity, or dodging a bullet.

It seems to me that there can be little to go on to try to determine which way something is going to go, too. Especially in crypto. That said, I personally still feel like that STEEM is way, way undervalued, but it's certainly not showing it at the moment.

With as much good as I think has happened over the last 10 months (I'm still in wait and see mode with the EIP, but hey, maybe it's more a personal issue than anything at this point), and with more good things finally seeming inevitable at this point—SMTs, Communities—barring something major happening, there's a lot of good going on here.

If people outside of STEEM can see it.

That's just it. I don't know if they can. And it's not just STEEM. It's crypto in general, outside of maybe Bitcoin, and I wonder just how many people know what it is, or have even considered purchasing any.

I'm pretty good at finding spot news, like this, thanks to my journalism days, but as far as interpreting it for anyone, well, that's just not my thing.

Any thoughts on what's going on now? Anyone want to hazard a guess? Is there more to go before STEEM hits bottom, or does this just mean STEEM will finally shoot up to where others have been saying it will go. Are you still holding and powering up, or are you one of the ones selling?

Images sources—Coinbase and Coin Market Cap

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Apparently the drops are because of Bitcoin. Bitcoin futures contracts were released on the NYSE, but they were underwhelming, at least that's what I hear. You can read more here: https://www.barrons.com/articles/bitcoin-price-drop-bakkt-51569365796?refsec=feature

Hey, @themanwithnoname.

Yeah. So, all of crypto still tethered to Bitcoin when there's a sell off, but the bets seem to be off when it comes to the upswing. Thanks, crypto speculators.

I can't say that I don't disagree with the idea of a correction, but that doesn't mean everything needs to be pounded. And surely, that money is going somewhere.

The money only goes somewhere if people sell. As long as you hold onto it, it's just unrealized losses.

I actually would be buying Steem right now if it was easier to get dollars into the system.

Tell me about it. I'm fighting with coinbase, who conveniently offed it onto my credit union, because I can't use my debit card (unsupported card). It's dumb. Unless you have crypto, you can't buy crypto, but you can't buy crypto unless you have crypto.

So, if you were smart, fortunate, what have you, to get some crypto before they starting clamping down, then you're free to trade. Otherwise, you have to wait seven days while the prices go up and down and all around and the reason why you wanted to get some in the first place is potentially gone—except values don't seem to move nearly as quickly as they used to. We do a lot of sideways moving before that.

It's just so convoluted. It should be as simple as just loading money onto a card. I should be able to buy it at a vending machine with no ID or anything. Silliness.

Yep. If anyone should have acryptocardwithnoid, it's themanwithnoname. Just sayin'. :)

So true!

I think I'm lucky to live in the Philippines.

@emafe can buy Bitcoin with her Coins.ph account 👍

Hey, @chrisrice.

Sounds like it to me, as far as getting alt coins go, anyway. Here, I'm jumping through hoops to get to STEEM, and it's like, come on, it shouldn't be this hard. I'm hoping there isn't an outright ban on things. That would not be cool.

Good job

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I am holding and powering up - if there is anything to power up at all. 😊

I didn't realize that you were a journalist, Glen. No wonder words seem to flow for you. 😊

Hey, Vincent.

I owned two very small weekly newspapers for about 15 years. I did quite a bit of writing at the start, then was able to pay others to do it, but I've enjoyed writing all my life, so it's good to have words flowing at this point. :)

😊 👍 👏

Buying crypto without crypto is a pain, but I guess now could be the time to make that extra effort.

Don’t quit the day job is ringing in my ears right now!

Hey, @abh12345.

Yeah. Probably not a good idea.

I hope things get resolved soon. I may or may not have some kind of resolution soon. At least someone at Coinbase says they're looking into the matter after I basically said being unable to connect my debit card, or use my checking account instantly, rather than depositing into a US Dollar wallet and then waiting seven days so they can protect me from fraud, was not conducive to me wanting to use Coinbase.

  ·  2 months ago (edited)

FYI the current SBD design is different from that described in the earlier version of Steem White Paper.
The WP suggested the(partially) compulsary conversion from SBD to Steem Power in case SBD debt ratio couldn't stay below 10%.
So, in the current situation instead of getting 65 cents for 1$, you would get 1$ for 1$, but locked in SP for 2 years ( initially it was 2 years, not 3 month we're having now )
However this part was actually never executed in code.
Updated: it wasn't the WP, the gradual forced redemption of SBD for SP was just a proposal from Dan Larimer
https://steemit.com/steem/@dantheman/steem-dollar-stability-enhancements

Hey, @svamiva.

Thank you for the information. So, if I'm understanding correctly, you're saying the the SP lock for two years was never executed? Is there a lock at all?

Also, with SBD at 65 cents, are you saying we would get a $1 worth of SBD? If so, that's what I was trying to say. Or, in other words, regardless of the SBD price, it gets treated as a $1, which can't be good right?

the the SP lock for two years was never executed

No, the SP lock for two years was there till authumn 2016, then changed for 3 month.
But the proposed compulsary convertion from SBD was never executed indeed.
Yes, the idea was that 1 SBD should always be treated as 1 USD, however this "1 USD" would be locked for two years in case of high debt ratio.
My guess is that if that system would be implemented we would never witness SBD price as low as 65 cents, because people who want to power up would have intensity to buy SBD below 1 USD and convert it to SP.
However, the compulsory convertion wasn't actually in WP, it was just a proposal from Dan Larimer, here is the link
https://steemit.com/steem/@dantheman/steem-dollar-stability-enhancements

You might want to read this @exyle @therealwolf.. maybe fixing the SBD problem could reduce some of the selling pressure.

Still holding still powering up the rewards, and made it to my goal of 2100, so new goal is now 2222 SP. Maybe by the end of the year,

I did see a story about KIK CEO and the Securities and Exchange Commission, lawsuit, maybe investor nerves or something, but as long as there are people looking and voting and reading, I guess the price does not effect me to much, one day it will, but it is still monopoly money to me until I decide to learn how to buy or sell and convert to fiat, so until then, its is still fun.

Hey, @bashadow.

@themanwithnoname found an article about Bitcoin and Bakkt (I believe it is) that didn't get as much buy in as quickly as predicted, so down tumbled Bitcoin and everything else with it. As good an explanation as any. The problem is, we seem to be not tied to Bitcoin when it drops, but not so tied when it goes up.

At any rate, looks like the fall has stabilized somewhat.

It's getting to the point where I might be able to reach orca status, at this rate. :/

I'd feel the same way if I had left things to just SP earned, but no, I had to invest some to get my upvotes worth something. So, guess what, the price keeps going down, making my upvotes worth less each time, and then the convergent linear curve steps in and knocks it down further.

I seriously don't know what people think needs to be invested here in order to show you're 'serious', but it's at the point of ridiculousness.

I always enjoy reading your posts from time to time. There's always a reasonableness and openness in your thinking that I enjoy. I, for one, am hopeful of a grand selloff. We need a certain reset for STEEM, and a selloff would mean Whales dumping STEEM and making it more affordable for new comers to get interested in the blockchain.

I don't think looking at other tokens or coins is the way to go. When BTC hit bottom, many Steemians were excited by the prospect of ALL cryptocurrencies riding the BTC wave. I noticed very early on that something strange was going on when BTC rose, and STEEM continued to fall. I don't assume to know why, but I simply took notice, and have been enjoying the fall since. Please don't misunderstand me, I'm not cheering for the downfall of STEEM nor the Steem Blockchain. I'm cheering for a revolution that will flip this oligarchical crypto coup d'etat on its head. This technology is amazing, and grossly overlooked and underappreciated by many.

I never really understood the SBD thing. I've read the White Paper over and over, but I'm just not able to grasp the concept. The only thing I can say, if I understood how the SBD is supposed to stay pegged to the USD, is that many are not willing to exchange their STEEM for SBD, nor are they willing to buy SBD to bring the price up. This means that there are some heavy holders of STEEM that are waiting in the shadows for the right moment to dump and run. Hence, I agree with your thought that a selloff is afoot.

I disagree, however, that STEEM is undervalued economically. I believe it is overvalued and should continue to go down, maybe even to 0.01$. This way we can have a real change take place that would allow us to really see what this blockchain can do. It is in the interest of only a few people that the price rise, and those are the ROI Investors; people who are simply waiting for their handsome return. I refer the Idealistic Investor who is more interested in seeing what this technology is capable of. Eventually, either the ROI Investors take their loses and run, or they stick around and do everything within their power to slow down progress. The nice thing about the Steem Blockchain, is that total control of the system is very, very difficult! There are more than 14,000 block producers who are not making a living from Steem, but rather, are waiting for the changing of the guard.

In the recent post Let's face it - #newsteem does not work the author @rondras in his comments with me made an important observation that I completely agree with...

I think that this is the way Steem works at the moment - most people that are here today are here for the community. Money can hardly be an argument for most people.

These are the Idealistic Investors, Content Creators and Curaters* who intuit the power of the technology. Those who are invested in the ROI will eventually be off looking for the next bull run, but the Idealists are looking to see where the technology can go. A digital financial system is inevitable, so let us not look at who has the best coin, but rather, who has the best blockchain. I'm cheering for Steem, even at a penny!

Hey, @famigliacurione.

It seems like we've been in the midst of a grand selloff for all of 2019, but that can depend on your perspective, too, I suppose. It seems like someone has been dumping STEEM, and Steemit hasn't been the only one.

If I could get Coinbase to cooperate, I'd probably start buying again.

There may be all of those witnesses, but most of them are either dormant, or dead. I think the actual number of witnesses up and running is less than 140, though that's within the top 400 (I guess there could be some who are below that). I understand what you're saying though. Some of those will probably come back if/when STEEM goes back up and it becomes more financially beneficial to run a server again.

We can agree to disagree about whether STEEM is overvalued or undervalued. It seems to me, though, that you see a lot of potential in the blockchain, or at least the technology behind it, which would also indicate that at some point, STEEM will rise again, because of everything it has going for it under the hood, and what is finally going to arrive on top of it.

And I would agree that most people who are still here are for the connections they've made. I would also hope it's because they have some vested interested in their stake, though. That's kind of important, whether it's big or small, and accruing at high or incremental rates.

As far as where the technology can go—there needs to be some kind of monetary support for this to happen. The top 20 witnesses get paid, but with STEEM as low as it is, that amount keeps devaluating, and since most of the world runs on fiat, they will be paying their bills in the currency wherein they live. At some point, even for them, I would imagine, it becomes a question of how long can they keep going. I think those in the top 20 and maybe another 20-40 down the list are in it for the long haul. I'm just saying there comes a point where not everyone is going to continue.

Whatever that point is.

I'm okay with STEEM spreading out to more and more folks and becoming more and more decentralized. But people have to first buy STEEM. $0.13 USD is pretty low. :)

Hodl, Hodl, powering up and still a believer in Steem.

Hey, @thebigsweed.

Yeah, I don't know if there's really a better option. Sweat equity actually causes whatever fiat or crypto has been invested to drop the effective purchase price down, so that's good. Can't see getting rid of STEEM holdings at this point. Those who got it for free might want to, but why? What do they know? Are they cash strapped? It would be nice to find out.

At this price, one would have to be really tight on money to sell at this price @glenalbrethsen