Every day for the last few weeks I have seen a significant drop in the price of Steem and just when I think it won't go any lower, the next day it does! As I wrote about recently, Steem's value depends on the successful evolution of the social networking aspects, moreso than the purely financial aspects.. Here's how the situation can turn around in the next 6 months...
As you can see, the current price of $0.67USD for Steem is as low as it has been since May 2017, according to CoinMarketCap.
As always in crypto markets, there are numerous factors involved that are influencing the price changes and there are so many people and groups involved that it is not always a simple matter to understand what is motivating markets on a daily basis. In some senses, it is easier to predict a horse race than it is to predict crypto markets accurately. However, when it comes to specific cryptocurrencies, we can certainly look at the unique forces involved, such as the features of the coin/token, the team involved, any community that is attached and also the actions of direct competitors.
In the case of Steem, it is no secret that EOS is live and threatens Steem directly, partially due to the dispute between @dan Larimer (original designer of Steem and EOS) and the current CEO of Steemit Inc. @ned. It is certainly likely that some holders of Steem will sell up and move across to EOS. However, EOS's price has also nosedived recently, not holding up as much as Bitcoin (or even Dogecoin!).
Given that crypto is largely unregulated and can produce massive gains in short time periods, it is no surprise that there might be heavy market manipulation from numerous sources. I can't help but notice that each time there is a large spike in the price of Dogecoin, for example, other coins nosedive - inferring that perhaps some large holders deliberately move their tokens across to Dogecoin every few months to play out a tried and tested strategy for profit taking. This kind of move is not one that benefits from any kind of improvement to human life or service being given, it is literally just taking money from one group and giving it to another - for no reason other than that they have gone into a form of financial combat.
Non Greedy Co-Creation!
The answer most likely lies in being productive and creative. Creativity is always the root of the value that money is intended to represent - so by being creative, we are inherently creating value and thereby also forms of wealth too.
As I pointed out in my previous blog, some of the money used to buy Steem consistently gets paid in rewards, meaning that Steem has to receive investment if it is to even stand still in terms of value. Therefore, we must creatively use Steem to attract investment if we want to see a solid recovery.
There is massive money available in social networks such as Reddit, Facebook, Twitter and G+ - if only through advertising - and so it is important that Steem capitalises on that if it is to thrive into the future. The community features that will be coming in the next few months will likely provide a massive boost in that direction and once people have a valid way to form real communities on the blockchain, I feel it is likely we will see greater adoption and intention to use Steem as a tool for social networking, rather than a novel way to get paid for posts. As long as competing social sites provide much better features, Steem's financial aspect will just be a single benefit, rather than being a killer feature that makes the difference between someone using Steem and someone not using it.
Our own creativity will make the difference here, both in terms of how we use the new features and also in terms of how we promote Steem to others. It isn't enough to just hope someone else will do it, Steem is much more of a community and DIY project than the large corporate networks and the quicker we realise this, the better for us all.
When we use a consistently balanced approach to growth that takes a long term view, the results are much more beneficial overall than short term exploitation. It is this kind of thinking that will turn Steem from an immature concept into a household name in coming months/years!
Wishing you well,
Vote @ura-soul for Steem Witness!
(Witnesses are the computer servers that run the Steem Blockchain.
Without witnesses there is no Steem, Steemit, DTube, Utopian or
Busy... You can really help Steem by making your 30 witness votes count!)