Why STEEM Is A Better Buy Than You Might Think

in #steem2 years ago

To Any And All Investors:

Looking at where the price of STEEM is right now, and what it did the last time it was this low (somewhere in April, 2017), the prevailing question should not be, how low can it go, but how much longer before it takes off?

While Bitcoin and maybe a handful of other tokens have come out of the crypto winter, most others, including STEEM, have continued in it. Why that is, in general, can be attributed to any of a number of different factors, combinations thereof, along with good old fashioned waiting for an opportunity.

I'm writing to invite you to look at STEEM as that possible opportunity.

Screen Shot 2019-08-19 at 8.45.49 PM.png

HardFork 21

Undoubtedly, you've heard that there are two rather large components to the latest hardfork that will take effect next week. This is now assured since 18 of the top 21 witnesses have already adopted it, meaning the supermajority has been met and consensus reached. The two components are:

  • The STEEM Proposal System (SPS), aka, the worker proposal system, or DAO, as it may be referred to elsewhere

  • The Economic Improvement System (EIP), which proponents believe is a much needed shot in the arm for the current blockchain economics, and opponents warn could be the beginning of the end for STEEM. At least the social side of it, where most remaining users still hang out.

I would imagine there's not much to explain about the SPS. This is meant to fund all kinds of things on STEEM, though a lot of it will probably fall into some kind of project development. As it is, development under the hood of the blockchain, as well as new dApps connecting to it, along with some interactions from other chains (like SNAX) has occurred, despite the bear market, and without the SPS.

Why the EIP may be important to you, as an investor, is either way, the ROI is meant to jump. Be it through good old fashion curation, as has been promised by the proponents, or continuing delegation (which has a chance of making even more returns than it does now), the rate of return is expected to get better. I'm told that's what investors want, and that it's the number one priority when looking at opportunities.

Cost Savings

You might also be aware that late last year, Steemit Inc., the folks behind the blockchain, its improvements, etc., downsized and restructured. For many, that has been looked at as a negative. However, what has happened since all of that took place—a refocused approach, less distraction, more communication, cost savings in the hundreds of thousands, more scalability—in short, a lot of good has come out of it, and continues to come out of it.

One could argue that Steemit, Inc. was bloated, heading in too many directions, and was unsustainable in any kind of market other than one that constantly went up. Since reality means forging on even during the lean times, these changes show that Steemit Inc. has made some of the harder decisions (compelled or not), so that it can continue to help STEEM along.

STEEM is now one of the leanest blockchains to run a node on with as much traffic as it has, and with how much it aims to have in the future.

Steemit Inc. Is Not STEEM

While the fortunes of STEEM have seemed inseparable to that of Steemit Inc., the two are not the same thing, and more than ever before, STEEM's fate is tied to the community that has sprung up on it, and those who are yet to come and build upon it. Steemit Inc. has been divesting itself of STEEM on a regular basis, delegating a big chunk of their holdings to dApps, while also providing delegations for new accounts.

While many will look at this divestiture as a bad thing, and perhaps a main contributor to why the STEEM price is where it is, the fact is, the more STEEM it let's go of, the more there is available for purchase, which means a potential for wider distribution. It may not be the popular way to do it, and it may be painful now, but Steemit Inc.'s potential hold on STEEM is weakening, which I understand to be a good thing.

The fact that there is a three-person committee formed to re-evaluate Steemit Inc's delegations, for good or ill, is meant as another move towards decentralization, which I'm also told investors want in crypto.

STEEM Alt Tokens And SMTs

Innovations have continued without Steemit, Inc. STEEM-Engine exists in large part because Steemit Inc. was yet to deliver on SMTs. While not SMTs, the tokens to be found on STEEM-Engine are creating communities (or tribes) that have their own sets of rules, their own economic systems, and their positives and their negatives. If nothing else, these tokens are providing a real world test to what SMTs are capable of, albeit perhaps on a smaller scale.

While SMTs have been promised for quite a long time and have yet to arrive, the work has resumed on them, meaning they are nearer than ever before. While no set date is available yet, they are on track to be into the testing phase by the fourth quarter of this year, which means another hard fork to implement them after that.

The Community

STEEM is meant to be many things, but it continues to be most widely a social media platform. And those of us who are here and still participating to any degree are largely in it to see STEEM rise again, and surpass its previous rates of growth, and this time, sustain them. We do care, so much, that we can't seem to stop talking about what should be done. And no, we're not afraid to go after one another about it, either. While decorum should always be maintained, and we could certainly do a better job of that, people are invested in STEEM, and they care what happens to their stake.

As an investor, that should be important, too. That there are people that are here for the long haul, and who are looking to the future while of necessity keeping an eye on the present.

We've got a wide range of personalities, some of the outsized, some of them barely able to function, and probably every point in between. We come from all walks of life, from many points on the map, and represent a wide range of thought, experience, knowledge and passion. Which means we have our share of spammers, scammers, and phishers here, too. I doubt they would be here if they didn't see opportunity. That's not a selling point, just a reality. And while there's been plenty done to discourage such unwanted activity, there is more coming and more to be done after that.

Upside Vs. Downside

STEEM's all time high is over $8.00 USD. Currently it sits under $0.18. According to my math, that's over 44 times under its ATM. Bitcoin's ATM is a little north of 20,000 USD. It currently sits out about 50% of that. Which would be the better buy?

Even if STEEM only gets back to $2, that's over 11 times more than where it is now. Is Bitcoin likely to hit nearly $120,000 USD, the equivalent of what buying STEEM at 18¢ would be if it went to $2? $1 million USD invested in STEEM equals over 5,500,000 STEEM. The same $1 million would only get you around 92 Bitcoin.

On STEEM, you would have substantial influence at even a tenth of that. On Bitcoin, and various other alt coins, not-so-much. STEEM has many places it could go with investment and development. Most of the other opportunities have one type of use, not multiple.

An Invitation To You

I'm not an investment professional, and this is not investment advice. As with any investment, weighing of the pros and cons should be done before any action is taken. This is meant, however, as an invitation to take a look, if not a second or a third, consider what I've presented here, and look into it even deeper.

Along with some user and governance shortcomings, you will find a sleek, fast, free, scalable, and continually developing blockchain with a core group of users who care about what happens here, and about each other. While their reasons for being here will differ, along with their needs, their talents, knowledge, etc., the vast majority want STEEM to succeed, even if that means ongoing change.

I invite you to take a closer look. Make the comparisons. See where STEEM has been, versus where it is going. Weigh the alternatives. I think you'll see a lot of good reasons to invest once you do.

Sincerely,

Glen Anthony Albrethsen, @glenalbrethsen
One of many invested and concerned users of the STEEM blockchain

Image source—World Coin Index

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Time will put everything in its place - I’m not going to turn off the next 5 years

Hey, @russia-btc.

Yeah, I wouldn't advise "turning off" the next five years, either. :) We're in a pretty pivotal time right now for a lot of reasons, and my main hope is things don't just fizzle and end in a whimper, when they could just as easily roar and change the world. :)

I’m here for a long time / so far there is no growth, and this is good - there is time for technical details - I think that for at least 6 months the price of Steem will be about 0.13-0.15, and it is very good - cheap Styim for everyone

Posted using Partiko iOS

Six months of sideways skidding, or something like that. Well, that's as good a prediction as any. There are certainly more factors involved than just what we're doing here on the blockchain, so, while we can try to righten the ship and tighten up what happens here, we're always going to be at the mercy of the broader market.

And in the meantime, as you say, cheap STEEM for everyone. :)

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There does seem like there could be a lot of upside potential. It may yet continue down in price too after this hard fork. I'm really not so sure what will happen but you bring up a good point about the risk verses return potential for STEEM verses bitcoin.

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Hey, @litesplasher.

re: hardfork

Values do typically fall after significant events like a hardfork, so I agree—there could be more selling. But then they also tend to come back up after the dust settles and everyone can see that things are leveling out.

We tend to talk a lot about how what we do on chain makes a difference in the market values, but I'm not sure just how lockstep it is. I try to watch what happens after things like this and if there is a reaction, it's often delayed. I think right now, we're still lumped together with most of the alts, with a "do not buy" negative hovering over us from things that happened three years ago (even though those things didn't stop the price from going to its ATM).

When the positives outweigh the negatives, even if its only perceived, people tend to defy a lot of things—logic, common sense—to buy in. Right now, I don't think people would have to defy much of anything other than what they're being told about STEEM and crypto in general.

A nice positive read for all of us here and those that might be looking in. I'll share on twitter just in case :)

Hey, @abh12345.

Well, I think STEEM is positive right now, which hopefully is the point that came across. We still have a ways to go with a lot of what goes on here, but the underlying code of the chain is better than its ever been, even if the individual shenanigans above it continue.

Oh, and thanks for sharing on Twitter. I guess people still do that, right? :)

Probably the most 'liked' article I've ever shared there, good stuff :)

Well, cool. :)

I mean, I think there is a lot to like about STEEM, so I'm glad the article is well received. However, that must mean you have mostly STEEM followers on Twitter. :)

It is also one of the few places we can really engage and mine to accumulate (and enjoy the process)! I happily continue to add funds as I definitely agree that the risk/reward profile is attractive considering the factors surrounding the ecosystem.

Posted using Partiko iOS

Hey, @newageinv.

You were definitely a part of the thought process going into this post. :) Knowing that you, and others, have been buying is a positive for STEEM, community morale, etc.

I hope to grab some more and do it as soon as possible, but if the prices go back up before I can, that's okay, too.

There's a lot to like with STEEM, without burying the negatives or overlooking or looking past them. And anyone buying in with 100,000 USD or more is going to have some say in how things go. We need more influential voices pointing in a positive direction and less of the burnt out ones or whatever they are (burning things down for burning's sake?).

History will repeat itself :)

Posted using Partiko Android

Hey, @amahovac93.

History does have a tendency to work in cycles, doesn't it? :) I imagine a lot of us were hoping it would have repeated itself by now. I think it's closer to doing so. The when is the tricky part. :)

Yes and Steem has come such a long way when it was valued at 8$, it is crazy that is now worth 0.17 $

Posted using Partiko Android

Having moved in the crypto space since 2014, I have seen two bull- and bearmarkets already.
People need to understand that these patterns repeat (while they might shift in time-frames) but the basic fundamentals is always the same psychology, because it is a free market that is mostly handled by humans (or bots that were set up by humans).

So there definitely needs to be more education for the general masses who are not that much into financial analysis and don't know how assets behave. I have seen so many occassions were people sell their coins/tokens when it is already close to 90% retraced from ATH and the whales just simply buy their shares low. Don't be that guy...

It is time to BUY BUY BUY, if you haven't realized that yet, it is about time to do so.

I'm just gonna leave this here for anyone interested in how assets usually behave:

Hey, @criticalthinkin.

Thanks for the cheat sheet. :)

Buy, buy, buy. I like it. Those of us who may have lamented getting in after STEEM took off should be looking at this as a second chance. Those who have yet to get in should be looking at STEEM as incredibly undervalued, and getting more so the longer the price stays low and the development continues.

Many of us are here just for the sake of posting and commenting here. We'll be happy if steem price increases. But, it would be disastrous if it becomes worthless. It is up to the witnesses and the stinc to increase it's value to save this platform, which has been hitherto a closed community of a few people.

Posted using Partiko Android

Hey, @akdx.

The witnesses and Steem Inc., definitely have a lot on their plates, and a lot of the shared glory and blame to take depending on how things go.

But I also think, if we desire to take it and continually push it, that individuals and groups have a say in this, too. They're already doing it, and I'm glad that some kind of development and innovation moves forward even without the witnesses and Steem Inc.

I wish the all good days of steem can come back. The days of $5-$8

Hey, @doyi.

It seems like in any rush—gold, silicon, online, social media, now crypto—there's this giddiness that takes place at the beginning as people tend to overlook the laws of the markets, gravity, physics, etc., and so they jump all in on what has been built up to be the one sure thing. In reality, there are no sure things, and so when something disappoints, or long term holding turns to short term gains, the price plummets.

I don't think STEEM was intrinsically worth $5-$8 back then, but I do believe, with the last hardfork, what's gone on under the hood since November, this next hardfork, and more coming, that it's worth much more than that now. While there's been a lot of messing around and lost time for all of 2018, some of that has been made up for, and all of that should be put in the positive column if one is making a case for STEEM.

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The future of steem is bright

Hey, @adedapo-glory.

It certainly can be. STEEM does have a lot going for it right now, and the chain itself is the best part. The human part of it, what we're doing with it, is not up to the technology's potential yet. We keep seeing innovations and improvements, maybe the human interaction of it will streamline a little, too. One can hope, anyway. :)

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ON sale now at a broker near you ... for just 17cents each you can own Steem.

Hey, @shadowspub.

It's craaaazzzzzzy!!!! Representatives are standing by to take your orders. All major credit cards accepted. Order now!

I see there is great hope for steem, all we need is to be positive and believe, this phase will soon pass. 👍👍👍👍👍👍@glenalbrethsen

Hey, @rechylove.

Soon, obviously, is relative, but I do believe it happens at some point. There's just too much good stuff happening under the hood that we don't every see. And if the EIP manages to do even a third of what it's supposed to do, things might just improve overtime in the social media side of STEEM.

There is a lot going on here. Many people have been saying it. I think it's worth repeating. :)

@quillfire @fionasfavourites

Thought this might make you feel better about things around here.

I personally agree with everything said here, add to that there are many apps and developments in the works from devs all looking to build on the blockchain with different applications.

Interested to hear your responses given our in depth and lengthy discussions on the future of Steem

Posted using Partiko Android

Hey, @nickyhavey.

Well, I'm just one voice, right? That said, the blockchain itself is sound. There's plenty to work with and build upon if someone chooses to do it. Meanwhile, those of us primarily dabbling in the social side are basically on notice. We probably need to step up our game. Quite a bit.

I know many content creators are not happy with what's happening with the EIP. I'm certainly not. And us creatives, the ones who are trying to put our own stuff here on the blockchain rather than just talk about STEEM or crypto, well, I think we're being the hardest hit. Which is why I'm talking about STEEM more than I would like (which amounts to once or twice a week).

That said, we need more curators. Supposedly, the EIP is to encourage that. We'll see. No one should hold their breath. Believe it when you see it. But regardless, if we're going to ever grow as creators, we need more and more eyes on our work.

So, curation and onboarding becomes crucial, along with retention and it would be nice for folks who might want to curate to come back to do it. Gain some of the 1 million-plus dead fish that have been floating around for months and months.

Hopefully @quillfire and @fionafavourites will be heartened a little. Not sure all of what they've said, but I can imagine it, just because I've probably said at least some of it myself. :)

Yes I think we are all in the same boat and have had many discussions around the same points you brought up.

When I first joined steem, I thought it as a blogging platform that would give a bit of money (nothing much, just a little bonus). If it was my sole income source I would be pissed off as the payouts aren't great.

However as time has gone on, moreso the last month, I've begun to think of it more than a monetisable blogging/social media site but an investment opportunity to help pave the way for future purchases or, for me, music or travel related things.

I've been pretty active on here the last 2 months and have been in the top 20 of Asher's engagement league so I'm not going anywhere and I see naysaying from those who haven't got as much out of the platform as they'd have liked but I'm pretty damn sure none of them ever bought any steem so where is the investment if you remove your time (hence your choice) from the equation?

I agree authors are being hit hard but only if you stay purely on steemit. There are tribes popping up with niche communities and more ways to earn steem than ever before. You don't just have to rely on writing a blog. I have earned all my steem or had pay from delegation investments to dapps or ocd and only really posted about steem stuff a handful of times.

I think the view point depends on what your own expectations were when you joined vs the reality. I've never seen steem above a dollar (I joined March 2018) - if it was above a dollar, I would still have been a phytoplankton and not noticed any difference to my account value due to negligible steem power.

I dare say a lot of my followers have come from real interactions on steem and checking out new blogs I wouldn't have read previously so a lot can be said for networking. You can't just expect to make a post and then hope followers will come, that doesn't work anywhere, non crypto platform or crypto.

I'll definitely be jumping on Hf21 and I'm planning on loading up on steem power in the next few months so my votes will be worth a bit more to those I support. These low prices are making me lick my lips but I feel there will be further drops as hf21 rolls out.

We'll see! Sorry for the rambling!

Posted using Partiko Android

Hey, @nickyhavey.

I've done my fair share of "rambling" comments, aka, covering the topic, so absolutely no worries on my end. :)

There is definitely an expectations game being played, and no doubt it is hard, even if someone came in when STEEM was just above $0.50 USD, to see it drop to nearly $0.16 now. Especially since those of us who were here when it jumped to $8 tend to let people know that, and of course, there's all the historical charts of where STEEM has been and the projections of where it could be in the future. When desire is one thing and reality is another, it can grate.

Which is why, as you say, it's good that there are other things to do to keep earning other than post creation, and it's good that there are people taking advantage of them.

Most cases have a positive and negative side. When you hit rock bottom, there's no place to go but up. No one wants to hit rock bottom, but in a few cases, that's what it's going to take before life can turn around, because at some point, expectations need to better align with reality, or vice versa.

I also agree about the investment part. There was a definite pick up in earnings as I invested. I don't know how much, but I have been doing better since HF20 then I did before that, and that was also about the time of my last STEEM buys. I know there are many people in all parts of the world that can't afford to buy in. I don't know what to do for them. I just know that the more someone can stake, the more it tends to attract earnings. The system is set up that way, and since there's absolutely know hint that it will ever change, that's reality. So, revoking the sweat and time investment isn't going to get someone, as you point out, on any platform, anywhere, where they ultimately want to go.

The difference between where steem was few years back and where it will be in less than 5years now is TIME, we are need to be consistent, optimistic and positive minded. Gr8 day to us all. Nice one @glenalbrethsen

Hey, @rechylove.

Thank you.

Definitely agree with the sentiment—Time is the great storyteller, and it will definitely show us either where were went right, wrong, and in between when the tale of STEEM is finished.

Consistency does work, being positive is probably a necessity, and I'll just throw in a caveat about optimism—hope for the best, prepare for the worst, expect something in between, be happy with what you have until you have the ability and means to make it all better. :)