What future for steem?

In the last weeks post we were speaking about the number of posts that was getting smaller over time and also the number of authors that was constantly decreasing.

This brings me to ask the question:

What is the future of steem?

Considering that onboarding and keeping people on steem seems not to work really well, it is an important question. Not only is it important for phylosophical reasons. It has a direct impact also on the price of steem and the survival of this platform.

The evolution of price and volume

When we look at the graph below the development of the steem price measured in usd sees a very clear tendency that seems still on the way. The value of steem has been falling constantly over the last 6 monts. What is also important to notice is that the volume of traded steem has also decreased quite constantly. Even more than the price itself, the decrease of volume in steem trading is a real negative sign.

source: https://www.coingecko.com/de/munze/steem/usd

Who buys steem today?

When we ask ourselves who is buying steem today, I believe that it is mainly the people who are already heavily invested in the coin and who haven't lost their hope. They believe in the currency and the platform and continue to average their buying price.

Few external investors

I believe that steem is not a coin for investors who are specialised in trading coins. Why? Because steem has a very high inherent inflation. Contrary to bitcoins for example, the number of steem in circulation is always growing at a rate of around 8% per year. The only way that makes it interesting to hold steem is to actually power up. Because like that you can use the steem power to upvote and create an income with author and curation rewards. If you own only liquid steem, then with the natural inflation of the coin, your coins will be worth less in the future. So why would an external person invest in steem?

Steem is different than the other coins

When I read the above, I have the feeling that it sounds quite negative but I truely belive in steem because it is not a coin for speculation. Steem is alive. It lives through the people and the community. The people who finally remain on the platform will stay in the long term because steem offers so much more than most other currencies. It is surprising to see that this community manages to power up so much that the number of liquid steem in circulation tends to decrease!

Consolidation before steem takes off

I believe that at the moment, following the changes of HF 22, the steem comunity is being reduced to the people who really believe into it. The people who wanted to earn a quick buck tend to disapear. From this core of hard believers the future of steem will be defined. We will shrink before we will grow again but I really believe that it is just a matter of time before steem takes off again.

By @achim03

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