High Price Of STEEM - Pump Or Correction? Reasons Behind The High Price? What Will It Be in 2018?
The last few days have seen a lot of celebration and jubilation and it is not just because of the New Year. Besides the New Year the reason for joy is also the high price of Steem and the surprise high value of SBD. Wasn't SBD supposed to be tied to the value of the US Dollar? Apparently not, as the pleasant surprise revealed itself from the detached higher value of SBD which is nowhere close to the US Dollar and not even equal to the value of Steem.
So the question on everyone's mind is whether this is a one time pump up or a correction that will lead to a higher price of Steem for some time to come. Read on to know more.
A Viable Alternative
The biggest of cryptocurrencies is undoubtedly Bitcoin. In fact to encash Steem or SBD you have to convert either of them to Bitcoin for it to be fully cashed out. However, at least from what I have seen the high price of Bitcoin is as much a dampener as it is an excitement. While the crypto world rejoices the success of the first cryptocurrency, many feel that they can't afford to purchase it. True, you can buy any amount no matter how small using the various marketplaces but the vary fact that it stands at a five figures and goes up and down in 4 figures scares the hell out of some people.
For this reason potential small investors look for alternatives especially coins that are available at lower prices and are expected to increase in value in the time to come. That is where Steem plays a big role. Steem is tied to an increasingly popular social blogging and networking site that has pitched itself directly in front of stalwarts such as Facebook, as a paying platform for the same or better content. While Facebook is restricted to being a place where you can post short pieces of content and comment in a few sentences, Steemit offers a full fledged platform for blogging, commenting and much more.
Paying Platform
Most people who discover Steemit think about the advantage of posting the the same things as they do on Facebook and get paid for it in a rising form of investment. This feature of Steemit is attracting people by the hordes and subsequently creates a demand for more Steem. Applying the principles of supply and demand, it follows that the price of Steem has not just gone up justifiably but that it will rise more during the year and beyond.
Seek Information & Get Paid
With the extensive use of the internet for information, more people would like to create their own blog pertaining to topics that they care about even though they may not be technically savvy. For them Steemit is a perfect place to start blogging and also get paid while enjoying their hobby. While you can use Google to dig out information on any topic in a few years it will be Steemit that will be the repertoire of top notch information in the future. With means of online monetization of web properties like Adsense yielding only cents, an alternative that pays much more offering many more features is going to be the place for all content creators in the times ahead.
This has not been very apparent in the beginning since most initial adopters were creating content pertaining to cryptocurrency. But with the passage of time as experts from diverse niches will make Steemit their base the site will also be an information portal. The best part is that the value for those searching for information will be enhanced when they realize that they can get paid by commenting on the information that they are looking for!
Game Changer
Smart Media Tokens are going to be the big game changer. When it starts getting incorporated into sites belonging to companies, bloggers and forum owners Steem will see a further price rise and put it in league with the bigger cryptocurrencies. Until now the main grouse that people had against cryptocurrencies was the utility value of many of them. For example, Bitcoin is considered mainly a speculative investment with a very restricted means of it being a payment mode.
This will not be such an issue with Steem as it can be used for paying out as a form of monetization for owners of online properties. After the decline of Adsense as a popular form of monetization that used to reward publishers well, there has not been a clear alternative. Steemit is poised to fill in the void very soon when the SMTs roll out in 2018.
Stability
Whereas Bitcoin and others can be bought or sold at a moment's notice the same does not hold true with Steem. Time is needed to power down in installments which means that impulse buying and selling is not possible with Steem. This restriction makes Steem less volatile and will make it more popular with investors. When I say investors I am counting Steemit users as a big part of the investor category of people since everyone has Steem Power as an investment.
Growth Potential
The market cap of Steem according to data available online is about 1.8 billion USD. The market cap of each of the top ten coin offerings is more than 8 billion USD. This indicates that there is great scope for growth for Steem, that is fast gaining in popularity. However, supply could be restricted due to the fact that most of the Steem is invested in Steem Power and this will push up the price as the demand rises.
The only thing that critics may find fault with is the fact that Steem is comparatively new when compared to Bitcoin and others. Also, the value of Steem and been closer to 1 USD in the year gone by. But the mass adoption of Steem through the use of Steemit and the initial changes have started to come about only in 2017. A lot more is expected to follow which will further boost the sign-ups on Steemit and increase the demand for Steem.
Conclusion
I might be biased as a Steemit user and fan but most of the facts and figures that are available support the argument that the Steem price will either stay high or will correct itself after a few ups and downs and maintain itself at a high level.
Let me know your thoughts in the comments below. :-)
Wish everyone a Happy New Year and have a great 2018!!
Would you please upvote and resteem this post so that it can reach others too? Also do follow me for more interesting posts.
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Image sources: Pixabay, Coinmarketcap.com
Ripple goes to 0, Steem has just started!
Thanks for the otimistic outlook and the good analysis. Hope your imagination will come true.
I found this post through a google search "will steem pump more" on mspsteem.com, it looks the same as steemit.com... I logged in there with my posting key, I hope it's just another safe block explorer.
Anyways, I think that the price of STEEM is dependent entirely on SMT right now. If it is a success, if it proves to be usable for developers and if we see new platforms and smart media tokens being made in 2018 STEEM will continue to pump.
However, if there will be problems with the SMT and it's usability, we will probably see STEEM plumeting down back to baseline (1 USD). Time will tell.
Another component of STEEM's success might be the rest of Larimer's empire, EOS in particular. It's been on a bull rally for months now, and I think people might be reinvesting some into STEEM.
That's just my opinion.
I think the beta form of SMTs will have some bugs and hence I presume the developers will roll it out slowly, preferably testing it out with external blogs of Steemit users who may be more understanding to the pitfalls. However, IMO it may not result in a crash of Steem back to 2017 levels since Steemit also would have matured even more and positioned itself as a direct competition to Facebook.
In fact I just posted an article about Mark Zuckerberg's initial plans to roll out crypto as a form of payment in Facebook. That there is just another point that needs to be taken into account - what if Facebook ties up and starts paying out with Bitcoin for example? It will definitely have an effect on the future price of Steem - maybe even positively since Facebook will spread the awareness that social networks also pay!
I believe that is a desperate act. MZ thinks he might loose the battle one day and is trying to get ready... It's very hard to think for me that he will succeed in using BTC because of the nature of how it works (it's infrastructure), and if they do create their own crypto, it will be centralized and lame. Anyways, I'm leaving facebook more and more. I just don't comply with it's business model... Fuck with people's dopamine loops in order to get them to use their website to get more traffic to sell more ad space!
True, centralization will be a self-created obstacle, ironically without which he will lose his hold over Facebook in any case, it being built on the base of a centralized framework.
I use Facebook only to peep into some of the groups I am in, just for important updates that I might miss otherwise.
In the beginning I thought that the whole power down thing was annoying but now I think it is one of the strong points of Steemit. People are encouraged to invest long term. This and the commitment of steemians make Steem on of the most stable crypto coins out there. My take on it is that investors are now taking notice. Add the recent additions of zappl, dtube and utopian make steem worth investing in. The future seems bright....
Great comment, especially about the power down feature being one of the strengths of Steemit. With more side platforms being added in, it will become an irresistible proposition for social networkers and investors.
No you are speaking the truth. There is too much potential in its future to ignore. Steem all the way ;) Thanks.
Absolutely! Thanks for the comment.
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