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RE: This biggest reason steem prices are falling: The Arbitrage Sabotage Steem-Dollar Teeter-Totter
We need more volume and more liquidity and more exchanges to support the system. It can only come with adoption but I think it will come no problem. This place is on a rocket to mars.
more volume won't make a real difference vis a vis this particular mechanism. Because the arbiters are able to generate basically infinite volume to bring the price back down.
I like steem, and i really hope it does well, but i don't know how you can look at the charts and the price action and think its on a rocket to anywhere.
The price action is totally expected. Buyers are funding a huge wave in growth and there was way more money being generated than able to sustain it. This price washout will be a gift and i can't wait to get in at the bottom and watch the door close. I really think people are sleeping when it comes to steem and they going to regret it.
Well, to start out, i have to say i hope your right. I currently have about 6K in sp, and even if I did not, I would want it to succeed for the sake of the platform and so that others here could make money.
That said, i don't think youre right for several reasons. I think steem can go to mars. I think whether or not it does depends largely on the decisions made in the next few months.
IMO, a big part of the problem is people that are thinking the same way you do. I mean here i show you, literally tell you how you can watch the price being dragged back down every time it tries to recover, and your first reaction is to get on message and say "everything is getting better . price hype price hype."
Its a shame, because there was this poster who had this story about carpenter ants and i can't find it now. But the point is, if an overabundance of enthusiasm short circuits your ability to think critically and solve problems, then its going to harm you in the end.
Im longsighted so i understand this process we go through right now takes time to grind its way out. Its the incubation period where buyers are bailing everybody out and my guess is this period will be long, drawn out, boring and totally demoralising. But once it begins to change it will change because fundamentals have taken over.
replying here due to nesting:
Well, you get that the price can only drop so far before the system becomes unworkable, right?
I mean youre talking about double digit percentage drops almost every single week. ANd these are only going to get larger.
i get what your saying, it could go like way low. But i think it will take care of itself. I think they did a great job designing the platform. Iv good faith but I'm not betting the farm. Infact I'm not betting anything I'm just buying what i can from trading. All my profits will be dumped into steeem power. The dream of finding an income so i can travel might then come true. :) If not no real loss.
@blakemiles84
which way do you want me to play out. The way where miners and witnesses have to operate nodes at a financial loss (which they won't do at least not forever), or the part where the decrease in value (and the subsequent increase in the steem value of SBD) kicks off super hyper mega inflation, or the part where the value is never going to be .001, because liquidity concerns (and the two points above) make it far more likely for it just to skip to zero.
I disagree with this ... play out how it would become 'unworkable' ?
People may leave, but there are still rewards. Even if Steem went to 0.001 cent per, there would still be rewards.
Hopefully it's not a korean rocket LOL