Why the price of Steem is surging.
The number one reason the price of steem is surging is what happened over Christmas and New Year.
Thousands of people started to use steemit for the first time, abandoning Facebook and other blogging sites. Word is getting out.
You can see the changes by reading @penguinpablo’s recent blogs. Here is one of his charts which demonstrates that:
In the above chart you can see a 50% rise in active users in just a couple of weeks.
Why does that affect the price of steem?
Answer: Vanity.
Steem is to bloggers what lipstick is to women. It’s a vanity asset. When you have it, people look at you. If you have lots of steem, they read your blogs.
You only have to look at the hundreds of replies I got on my recent blogs to know it is true. If I like a comment it is worth alot of money to the commentator. Lots more people read my blogs because I have lots of steempower.
Steem has utility as a vanity asset. It is useful to all bloggers. The more bloggers we have on steemit, the more people want to own steem (to get steempower).
Getting steem listed on new exchanges
The developers are discussing the listing of steem with a number of exchanges. There is no news yet, but they are hopeful. If listed on a major exchange, it would be much easier to buy steem as an investment without having to open an account with Bittrex.
There are several other reasons why steem should go up which I listed in my blog of a week ago.
https://steemit.com/steem/@swissclive/steem-could-easily-rise-10x-today-s-price-within-a-few-months-it-should-perform-better-than-bitcoin-steem-price-compared-to
Please don’t vote that older blog. Vote this one instead.
Thank you for giving that link of 12 day old post of your blog. I read it with much fun. (To bad it is to old to put my vote credits) I came across your blog while in search of what just happened tonight what could bring that $6+ steem price jump. There must be a reason for such sharp spike. Can not believe it is just an organic rise from more steemit users, more free time for blogging during holiday time. There must be more to it !
In any case, you just got +1 follower today. This time from Lithuania. 😃
You are right about the "more to it". I try not to confuse things for my readers so I keep it simple. Perhaps 5% or 10% of the rise is attributable to vanity buyers, (you can see some other people's blog about the movements in and out of steempower).
Whenever there is a change in trend, investors start to anticipate the future. That's what accounts for the other 80% to 90% of the price move.
Investors are stepping in, taking a position, and expecting the trend to continue.
I made a little post about you. It was inspired by @everlove and i hope you check it out. Just something simple and only in appreciation.
https://steemit.com/untalented/@olawalium/thank-you-for-being
I agree about people chasing Steem Power, but I'll say that I do respect the nature and intelligence in your posts more than I consider power. It doesn't hurt that you're generous and giving, but I read your material because I know it's going to be thought-provoking, relevant to my interests, and as of recent weeks, focused on helping the community.
@steemmatt, Thanks so much for the comment.
You are an intelligent commenter who adds interesting and thought provoking comments to people’s blogs. You really add something to the debate on the topic.
You write interesting comments (and of course blogs!). Your comments are useful to those who read blogs and they enjoy reading your input.
That’s why people follow you. That’s why people vote for you. That’s why you have a high reputation which will go higher.
You only have to look at some of the short meaningless comments which follow me everywhere.
You can see many examples below.
Nobody is going to vote a comment which adds nothing useful.
You got my vote for this comment!
Woahhh. Wow. Thank you so much. I really appreciate your feedback and words, especially as I've veered off crypto blogging lately, feeling that I wasn't able to catch peoples' interest, or that my ideas were off/too cliche. I needed this reminder and boost to stick to my guns. Very glad I caught your post before bed here and could reinforce what you do here.
Thanks beyond a million for your vote. I was about to work out here and got some extra energy now.
Absolutely agree ... Happy New Year btw :)
The part I liked most about the publication is when you say that having many STEEM in your profile gives you more authority.
It is completely true. It reminds me that we must work hard to maintain our leadership and get more followers every day. + STEEM = + followers
Having power is one thing which is good, but only when it is in the hands of the right people who do good with it. There are very powerful wars going on with people who have a lot of SP, and they are damaging steemit. One example is @ber......... and his gang of robot thugs (don’t say his name). I am staying well clear. You can read about it here in one of @doodlebear’s comments to me. https://steemit.com/steemit/@doodlebear/xowoz-today-i-learned-how-the-price-of-steem-dollar-sbd-is-made-you-should-know-about-that-too#@doodlebear/re-swissclive-re-doodlebear-xowoz-today-i-learned-how-the-price-of-steem-dollar-sbd-is-made-you-should-know-about-that-too-20180103t224804564z
That post is a bit difficult to understand. It is quite long and contains too much information in one place. It is interesting to see how witnesses have their own war of power. It is as you say, there are silent wars that one does not imagine. I'm going to be left with the user's doubt that can not be named, we talk about that topic by telegram
Okay I would like to believe this is the reason but come on it feels so unreal I mean $6+ something that was struggling with $2 some hours back.
I think there is a conspiracy behind this time to get the team back and investigation is needed would report my finders back to you.
Till Then stay Tune.
After hours of searching and searching I would like to believe the below is the case and new investors just re-entered the platform.
and probably this
Happy New Year from Nigeria sorry coming late
Irgendwie ist stem ein elitäres. System wer vie stem hat, hatund viel, macht😡
@otemzi It sounds like you may have a way to get more information? If you discover anything useful, please share it with us all!
As I mentioned above, part of the movement is due to vanity buyers, the rest is investors anticipating the future. That's why Amazon went from zero to $200 ten years before it made its first profit.
This should probably be the major reason, when new investors come into an organization, we get increase and improvements of that organization and also looking at vanity buyers as you mentioned, probably buying and exchanging steem to other crypto coin, reason for this is that looking at the price tag for both steem and steemdollar, the increase affects steem quite a lot afterall steem was supposed to be the superior.
Be that as it may if I do get any more info would be sure to bounce back and update
I absolutely agree with you as pointed out in this blog. Here is my own analysis further to the rising price of STEEM :-
(1) I have observed the synchronisation between STEEM and SBD from last 30 days. If you check once SBD price was 1 usd and then suddenly it goes above 10 USD and steadily traded there and after that the delegation market of steem power suddenly looks lucrative and people want delegated steem in order to earn more SBD. And now see the effect of STEEM the steem has gone up, becuase people are no more powering down their steem power.
(2) In last 30 days if you check, the liquid steem is constantly decreasing, which means less number of liquid steem is being generated which is otherwise pushing the price because of supply/demand factor.
(3) If you see the ALEXA rank, then steem has constantly improved its rank, particularly in last 60 days, which is a good sign.
(4) People have already understood that, here when they engage in this community there is certainly a reward whereas there is no such reward in facebook or other social blogging site.
(5) Technically I do see any price of steem below 10 usd as undervalued, so the demand of steem is still on.
Thank you so much @swissclive and Have a great day.
@shivohum2015 Thank you so much for adding these important points. Please continue to share valuable info like this!
Thank you so much @swissclive. Yes I would share more points as I go on experiencing more and more in this community. Wishing you happiest ever new year 2018 as well. Have a great day.
Spot on. I am one of the many users who dumped other social media platforms for Steemit. I have notifications there that i wasn't even moved to check. Trying to learn as much as i can here. Yes, with more steem power, comes control and audience which makes some people pay attention to what is written. I need to build mine too so i could give encouragement to others. Really excited i joined when i did. So much to learn and so much to give. Sadly most people just upvote without actually reading what was posted. This is all about learning for me because it brought a spark about my writing which i have lost for a long time. Makes me want to study more to give my best because you don't know who is reading. Go steemit!
I get loads of other social media notifications which I also now ignore. "10 people on Facebook want to be your friend..."
I would also like to suggest that lots of people are here for reasons which have nothing to do with the reward pool.
People read and write because they enjoy it. There does not have to be a monetary reward to make that happen.
However a monetary reward is a useful way to keep the score even if it is a few cents.
Hahahahaha "...10 people wants to be your friend".
You are absolutely right, many people are not here just for the reward pool, some wants to learn, showcase talent, improve and also socialize. I have lost count on number of people i have known through this which normally i might not even come across in life, let alone talk to. I met some that even live very close to me which i never knew. Really amazing.
Yes, the monetary reward is useful, it's sometimes like a motivation not to easily give up on what we know how to do. We really could use a little but of motivation once in a while. Steemit has been an amazing journey so far and more exciting moments to come. Writing gives me joy and getting my thoughts out there for people to know is super cool too. Thank you for being amazing. Time is money and choosing to reply and give your time and the upvote means a lot too. I don't take them for granted.
I made a little post about you. It was inspired by @everlove and i hope you check it out.
https://steemit.com/untalented/@olawalium/thank-you-for-being
Calling it vanity is a good comparison. But I'm not sure if it is good that Steem could be too independent from Steem Dollar. It might turn around the ratio for good when Steemit expands into the Mainstream and make Steem Dollar sort of an irrelevant asset as it is right now Steem when it comes to promoting articles instead of taking the 50/50 option.
Something else which I was wondering a (steemit-)long time about and which I got confirmed here is the disturbing fact of witnesses actively manipulating the Steem Dollar price - at least in the past. I'm wondering if they still do it or are able to do it at all. I will probably write an inquiry to the witnesses to find out. After all, it smells fishy and could be illegal.
I am usually skeptical of market manipulation stories. You can move the market with real buys and sells, but in my view it is not possible in a way which leaves with a profit. On the other hand market manipulation is where you change the of an asset by buying or selling it at a key time, in order to affect the price of another asset. An example would be a trader buying spot to affect the settlement price of a future.
If I understand it correctly, they don't/didn't do it for profit but for the "greater good" of the platform. When you are willing to lose money so others can't win you can surely break things.
When you look at the longer run of the SBD price you can clearly see it was pegged until their peg got broken on Nov 22nd by a Korean exchange.
The question is: What keeps them from pegging the price again? For example at 9SBD per 1 US$. To me it kind of looks like that and they do it by inflating the currency. Did you notice the big gains you can get for upvotes lately? All that gets pushed on the market to keep the price down.
I could be wrong, but this all feels to me as if they are willing to go on "printing" SBD to keep the price ratio to the US-$ stable again. I guess I'll have to wrap my head around the article first that discusses the matter..
Well it's really exciting to see that the price of steem is growing and reached a new all time high of $8.50 and it's just feel that we are not even started yet and a even more and huge future is ahed on steemit and im totally agree with you that steem is to bloggers is like lipstick is to woman and i am sure the more and more people join steemit the more and more value of steem goes up and many people including me already deactivated their Facebook account to do full time Blogging on steemit :)
Well done! You are ahead of the curve. Welcome to the future.
Thanks for welcome me dear and iam sure steemit is the future of potential bloggers and people who have talent but wasting their talents on Facebook and other social media platform because they don't knoe about steemit yet and they are struggling to get some attention of other random people.
Hi my dear friend, I wish you a Happy New Year!
Sadly true!
Interesting post, as usual! I feel the same way.
Yesterday i wrote an interesting post where i explained the reasons for the future steemit growth. Steem was at $3.5 now it is at $6.00.
The main points contained in the post was:
If you've got time to burn, you might take a look into it.. it's in italian language but you could translate it with google ;-)
@miti I looked at your post which really seems so terribly interesting that I struggled to read it in Italian (I have never learned any Italian). Whilst I could get the general idea, I wish I could have understood the detail better.
Time permitting, I will translate it in english ;-)
I put the translation in the same post.. thank for your interest ;-)
@swissclive when people entered to steemit and gathered in-depth knowledge about what the community is actually, I am damn sure they won't look back on other networks to spend time there. This is what happens in my case too. To be honest, I love spending most of the times on my own blog (Writing, SEO, Social Promotion). But after December 19, 2017 (the day my steemit journey started), I could not able to work on my blog and started spending too many hours in a day and night over here for reading, writing and engage with fellow steemians via comments. I agreed completely what you mentioned in your post, increase in both steem and steem dollars may be because of too many new accounts every day. Let's see how things change in coming days.