Becoming Bullish on Steem Again

6 months ago
55 in steem

Improvements

The changes that are soon coming to Steem are, in my view, good news for anyone considering to invest in Steem. Pretty much all the changes are improvements as far as I can tell, but looking at it from the point of view of a potential investor two changes stand out:

  1. A significantly shorter power down period of three months (13 weeks).
  2. Reduction of the inflation rate to 9.5% and then slowly dropping over a ten year period to 0.95%.

Good for Investors

The old two year power down period was way too long from an investment point of view. Three months is more manageable and more in line with investment horizons in the cryptocurrency world, albeit still a barrier. People tend not to like investing in something they can not easily divest from, so I think that by making divesting faster and easier more investors will consider investing in Steem.

The combination of high inflation with a long power down period, made it hard to buy on dips and sell on peaks, as the value of liquid Steem dropped all the time, and powering up was not an option for short term investors. The drastic reduction in inflation means that one can hold liquid Steem without losing too much in the race against the inflation clock. This might help stabilize the price of Steem, on the other hand it might also make pump and dump schemes easier. Either way, it means more interest in Steem as an investment opportunity.

Bullish

The changes have made me more bullish on Steem, so I recently doubled my investment in Steem. This is not intended as investment advice, I am not pretending to be able to give anyone good investment advice. I am only sharing what I did, and explaining why I did it. It remains a gamble of course, but I am hoping my gamble pays off!

Are you also getting more bullish? Share your thoughts in the comments below.


Eating Steem


BTW, have you tried this?

  1. Put your left hand over your head and touch your right ear.
  2. With your right hand move your mouse to the the upvote button below.
  3. Click on it.

It really works!

Authors get paid when people like you upvote their post.
Join our amazing community to comment and reward others.
Sort Order:  trending
66
  ·  6 months ago

Did not know that about the further inflation drop, thanks.

Tried it with the hand over my head, but on my mobile that was a challenge.
Yet, I managed to upvote!

·
55
  ·  6 months ago

:-D I'll have to think of a mobile friendly version!

·
·
25
  ·  6 months ago

Great article, to the Moon!

·
·
66
  ·  6 months ago

👍😁

66
  ·  6 months ago

This post has been ranked within the top 80 most undervalued posts in the second half of Nov 20. We estimate that this post is undervalued by $4.05 as compared to a scenario in which every voter had an equal say.

See the full rankings and details in The Daily Tribune: Nov 20 - Part II. You can also read about some of our methodology, data analysis and technical details in our initial post.

If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.

64
  ·  6 months ago

I bought Steem and Steem power when it was around a dollar, but just decided today to buy 3 dollars more at a much lower price. I put 0.003btc right into Steem power.