It's Steem crisis ATH but let's pause for a second and look at things on a 5 years range
Right now
The social media market has a stock capitalisation of 400B$. This include Facebook, Twitter and Snapchat.
So what they do these companies, they convert our attention into advertising dollars. That means our attention, the time we spent consuming and contributing on these platforms is worth something.
What if I told you, there is now a technology that allow each one of us to get rewarded for consuming and contributing on the internet. Our attention getting rewarded with crypto-currencies.
Steem blockchain is the most successful example of this new wave of decentralized platforms that give back to its users.
Right now Steem market cap is 100M$ with 1 coin = 0.4$.
With a supply of 250'000'000 coins and a price per coin of 0.4$, we have a market cap of 100M$.
In 5 years
Let's imagine we are now in 2023 and let's say the social media market is now 500B$. This number is probably too conservative because the space might become even more important.
I think it is right to think this new blockchain-based technology could easily capture 10% of the social media market in 5 years.
Let's assume Steeem is the one blockchain that solve the problem of rewarding contributors on social networks and let's calculate how much 1 steem would be worth if Steem capture 10% of the social media market.
10 % of the social market in 2023 is 50B$. In 2023, the number of steem coins have been increased to 350'000'000. This is caused by the inflation which is programmed in advance.
50B$ market cap divided by the 2023 coin supply of 350'000'000 coins is equals to 140$ per coin.
If we reduce the market capture to 5%, it is 70$ per coin, which is still huge and make an account with 10'000 Steem Power worth 700'000$.
At the rate of 70$ per coin and a 10'000 Steem Power account, it could generate 100'000$ per year by delegating all the Steem power. If you want right now to delegate your Steem Power and generate passive income you can try out SmartSteem from @therealwolf. Look me up in the list of delegates.
Steem crisis
It's now the peak of the Steem crisis where we learn that Steem Inc. is probably not going to support the Steemit app for too long. Also many big contributors like @exyle and @meno are starting to become depressed and angry.
This post is dedicated to all Steemians who are feeling down right now.
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I actually believe that the current downtrend is normal @jonmaim there is a chance that Steem as a currency won't recover but even if it does, it makes sense to get oversold first.
This isn't investment advice (I am not a fortune teller) but I think Steem is starting to reach oversold territory.
@chrisrice Oversold would mean we reached the bottom?
I am not a professional investor but I use the term to describe when a stock or cryptocurrency is sold to the extent that the asset trades below it's value @jonmaim.
It is hard to quantify what a cryptocurrency's true value is but I traded penny stocks in my teens that had a market cap of $50 million to $200 million based on nothing but a story and non-revenue generating patents.
That leads me to believe that Steem gets into the oversold territory soon after it's market cap falls below $50 million or about $0.16 to $0.17 USD per Steem.
This is just a rough estimate and by no means is a guarantee or financial advice of any kind but I kind of see Steem going that low before it bottoms out.
For people that just started buying recently, this is a good time for them. I personally started buying at $0.79 USD and have been buying a set amount every month since.
Thanks for sharing, this is very interesting. If we go that low, it would be a steal at that price!
That is exactly what I mean by oversold.. a price that is a real steal @jonmain.
In my experience volitile stocks and I believe cryptocurrencies too, will trend down toward 'steal' territory before the end of their respective bear markets.
A lot of the loyal Steem holders will probably run out of money before Steem reaches oversold territory, so in general, they will not be able to accumulate a good amount at bargain prices.
This isn't financial advice or professional advice of any kind but it is what I think and I plan my Steem purchases accordingly.
after every deep fall, there is a new rising. After rising, there is a fall. You are right, we should not fall into deep crisis in mind. We all have money in our accounts, there is a risk, but do we have as well a car, a bike, a house, a mobile phone and many other things? Of course. this material things can as well get Detroit or stolen, or even ourself damage it, that we loose it and the money we invest in it. It it not only Steemit, it is all in our life...
For me, I like more not to keep that money and "Steem" Coins, as power down and later have nothing, just in case Steem is worth 50,70,100 USD.. Good Post from you, sorry for my late reply, because your post is 12 days old
@travelwithus, thank you for your comment. Maybe Steem will become as big as Twitter or not. But as long as we never put all our eggs in the same basket we'll be all right