Steem @ $1.07 - Plumbing The Depths of $1 Support At Bittrex Today
I have been steadily accumulating Steem each week since I joined Steemit around June 1st, attempting to dollor-cost-average in at around the $1-1.30 mark.
As I woke up to check my trading balances today, I couldn't help but notice that Steem's down-trend since peaking in mid-June had extended almost to the $1 support line.
Usually, a large wedge on the daily chart like this will resolve when the two trend-lines converge. However, they can generally go either direction when that happens.
The trend-line on the daily chart (going back 2 months) looks just as morose:
$1 is a large, round, and well established support for Steem. I am banking that this support will hold, although it might be tested several times or pierced temporarily.
I would continue to be a buyer here if I had extra Bitcoin lying around.
Note: The above does not constitute investment advice, and I am not an investment adviser. Do your own due diligence. My returns may not be worth mimicking, so choose to follow my entry points at your own risk. I do not advise trading, but holding coins you believe in off-exchange.
This is so depressing to watch. I wrote a post a few days ago with some of the support levels of Steem/BTC...we have broken through all of those except the last one, which is 23.9k Satoshi. I hope we bounce of that...we are close to that now.
I wonder, do you think the fact that most people think in US$ terms when trading makes the Satoshi support levels less relevant, given they aren't corrected for actual cash-out value?
True...but trading and charts are all in Steem/BTC so not really sure.
You can check CoinMarketCap for a USD price chat, although it's a line not a candle and doesn't have all the functions you might want:
https://coinmarketcap.com/currencies/steem/
The price in BTC looks to be plumbing near all-time lows (quick visual appraisal only)
I am actually kind of surprised by the Steem price poor performance. Do you have a hypothesi?. I also see a lot of whales powering down, perhaps that will burden the Steem price further. Dips are nice if you are a long term Steem-holder though, BTFD:)
I think it's a result of exchange issues (transfers being disabled) at Poloniex and Bittrex, and the general alt-coin Malaise as Bitcoin skyrockets, and now I think Bitcoin Cash is going to be a serious contender...
Interesting times.
I was totally wrong. I thought BTC would fall with the same value of BCC, as happens with a dividend of a stock. I thought Steem would rise because of a supposedly strong network effect. Now, I am just confused. I am a pathologist, and for me the cryptocurrencies seem to me to grow like cancer cells, survival of the fittest. I must correct myself. Darwinianism is actually stated as survival of the fastest adaptable. My investment in Steemit has been a disaster compared to if I put the money into BTC. But, I do like Steemit and I have no use for BTC in my everyday life. So, interesting times indeed. Impossible to predict the next move. Have you read the post Bitcoin Magnificent Sevens by Stan: Seems that LSBTC could be a contender if its get hardforked. Perhaps, LTC could rise to. Who knows...
I, too, would have been much better off sticking with Bitcoin or several other things I wanted to buy earlier...Antshare at $1, Bitcoin Cash at $200, oh well. That's always how it goes.
I figured something similar to you, with BCC being sort of like a stock split.
I don't like most of Stan's weird alt coins. It's nothing like Bitcoin, nobody is going to use it. I don't think BCC is slow enough for it to be needed.
Having said that, haven't looked into it too deeply.
STEEM is an inflationary currency, which means that it goes down in real value over time.
In addition to it being inflationary, Steemit suffers from some unforgivable problems, on which I discussed in my past comments, especially see my debates against l0k1, elfspice, calibrae and voluntary, or whatever his name is.
There are yet more problems, and I am gathering them and might post in the future about them. However I do believe that my suggestions will go down the sewage of spam, and so will Steemit and DTube, and as they go down, so will the value of STEEM.
You have bot farmers, as l0k1 calls them, exploiting this system to the max with spam.
I guess that it is easier for them than to mine some thing, or trade stuff.
Ah, yes, those guys. I have dealt with them before and find them toxic, so I try to avoid those debates now.
It's important to note that Steem's inflation goes down by .5% flat each yeah from 9.5% initial, so it actually trends down pretty harshly. More harshly than the ending taper of Bitcoin difficulty.
Spam is indeed a key problem but I don't think it's unfixable. As the whitepaper notes, even this bot abuse are doing at least as much work as a PoW mining algorithm would be doing to secure a network.
When you think about it, Bitcoin miners really just point CPUs at a network and spam it with mostly useless mathematical calculations to secure a network. It's not much better than these bots, as the white paper notes, which is funny to think about.
I do not consider l0k1/elfspice/calibrae toxic.
voluntary I know less of.
Part of the reason to Steem's decline is the belief that storing such a big, growing and accelerating volume of data on retail computer can not be sustained, and due to spam bot farmers, it is worse than you feel.
Read sherlockholmes' work since cheetah's and steemcleaners' reports did not convince you so far.
PoW work in Bitcoin is not a guarantee of lasting growth of your share of the stake for long, due to Bitcoin's quantity being limited and I guess there are more reasons to it, but bot farming here does, at least initially, due to compounding effect.
What makes spam bot farming threatening for Steemit is its waste of unreleasable space which is even multiplied by the number of witnesses computers.
It is not like a PoW miner wasting its own energy, it is a bot farmer wasting its own energy and 50 others' limited SPACE!
Spam is worse than you think.
I would say that even without it, an immutable blockchain modeled social network is unscalable and unsustainable.
Just to clarify, I am not advocating for spam. I Agree with sherlock's work, as well as cheetah and steemcleaners. They all do a community service. I was playing a bit of devil's advocate.
I also think Steemit is superior to Bitcoin, technologically, so I would not advocate for taking up Bitcoin-style changes.
We're more in agreement than you think.
IDK if Steemit is superior to Bitcoin technologically, because I lack knowledge about blockchain and other things, but having an inflationary currency is an inferiority.
An immutable blockchain is a bad thing, it compromises efficiency and privacy.
IDK why carry the burden of the past forever, and this is aimed against both Bitcoin and Steemit's spam, and also against many things which most do not consider spam, but I do.
In a pure cryptocurrency case it is clearer to me why immutability is a flaw, in a social network with content it is more complicated.
I am also against proof of work, so if I had to design a cryptocurrency, it would vary from Bitcoin in more than one aspect.
Do you know if and where there is a list of all the consistency and security mechanisms/algorithms like PoW and PoS? I saw others being mentioned too.
Burst uses a new one, called Proof of Capacity. There's also variants of PoS like delegated PoS. Not sure if there's a list anyhwere, you may need to Google.
The immutable block-chain can still be anonymous, it just isn't really with Bitcoin.
Steem has a faster, lower-fee block-chain, which requires a lot less energy to run. That's mostly what I meant by superior.
Steem's block-chain is not really lower-fee, It is just more collectivist by financing costs with inflation.
In BitCoin, a buyer and a seller have to pay for their own. In Steem everyone pays for each buyer or seller.
Regarding less energy to run, will it not increase in the future?
This is top-notch!
You do realize Bitcoin is still inflating, right? And with Bitcoin Cash surging, Bitcoin original may not survive to become a "fixed" currency.
Inflation isn't always all bad, and Steem's dwindles over time. Nobody will take loans in a deflationary currency.
Energy costs for Steem witnesses will increase, but it's nothing compared to what kinda power Bitcoin uses up hashing.
This is truly remarkable.
I think the blockchains need to be designed to be immutable with the exception of allowing them to be split. As long as there are periodic checkpoints within them which hold the current state of the blockchain, there would be no burden of re-indexing it all frequently, which is currently a big challenge for the Steem blockchain. With correct design, the tail(s) can be archived and validated separately and needn't really be a burden. A social media site doesn't suit this approach quite so well because people want to see the older content, so that content should really be in a separate data-store instead of being integral to the blockchain. There's also a governance issue, that this would address.
I hope to write more about this in a post soon.
This is sensational.
I agree. Increasing the curation % would reduce self-voting and spam, but it all ultimately comes down to the data model.
You're a star!
This is excellent work.
This is gold!
Thank you for the insights.
I can't stop watching/reading/listening.
Yes indeed, to be able to buy for under a dollar sounds good to me.
a lot of altcoins are down. It's probably due to the rise of BTC and people moving out of the altcoin market temporarily.
I believe main issue is FOMO for BTC affecting altcoin and STEEM is taking big blow. However, there could be other issues such as scalability that may be hampering STEEM's value. Poloniex has disabled STEEM/SBD transfer again. There are other small issues such as big whales are power-downing big chunk of STEEM, recent voting downs of some big users by dan and ned. However, I believe when BTC settles down and as @lexiconical said BTC scaling problem comes back, STEEM will start correcting in positive ways.
I think they're going to end up regretting that. I think the alt-coin market is currently trailing the BTC market. Once fees and delays come back to BTC big-time (and they will, soon) we'll see what happens!
then we be sitting pretty ;) Money will move back in.. BTC will have dips.
Actually, I was kind of hoping Steem would wander down towards $1 again. I wasn't sure it ever would. Now I need to get some things shuffled around to make sure I can take advantage of it.
Be quick! I was too slow last time, and it doubled from $1 to $2 very quickly after JerryBanfield joined!