Why is Steem cheap?
I'm not an expert when it comes to cryptocoins, but could we explain why Steem has been declining in price from the high value of $4.50?
Personally, I think one of the main incentives for people to produce articles on steemit is the result of the monetary reward, and many people want this reward in more easily usable forms such as Bitcoins, hence there is a great desire to sell it when it is received, and hence the decline in price. It is difficult to generate the demand required?
Steem may not rise because it is not widely acceptable because it is not stable, because everyone wants to sell it.
If this is the case, how can we generate demand for Steem?
What's your opinion on this matter?
Maybe the tide is turning? https://steemit.com/steemit/@mallorcaman/pay-with-steem-metropolis-bar-open-for-business
Yes @lifeissweet, I'm no expert either, but your logic does make sense. There is no incentive for people to buy Steemit, but rather to always sell it for Bitcoins, so there is little demand and demand equals scarcity equals price rising (as is the case with Bitcoin and Ethereum). Perhaps some more experienced cryptocoiners will give us an opinion.
I don't see a lot of hope in the price going up. I can't imagine what value owning steem has.
The value of owning steem comes from holding it as steem power,and getting curation rewards.For this to be profitable,you need to hold enough of it.If you buy in now at a low price,you should get a return on your investment in the long run.I plan to buy,I'm currently at 2500 steem,and I plan to pass 10000 this year.There is risk involved,but also possible high profits.I', ona very tight budget though,and will only spend what i can afford to lose.
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