Steem Feels Very Undervalued

in steem •  2 months ago 

Okay as a steem holder I am obviously very bias. And I know people will say things like there is no such thing as undervalued or overvalued the price is what the price is and the market decides. That being said I think steem feels very undervalued. What am I basing this on? The price of Ethereum.

Steem is a blockchain just like ethereum. You can make dapps on it and it is open source so any developer can join in the fun. We now have a pretty sweet keychain wallet which will make third party dapps easier to use and we scale well especially compared to other blockchains. Sure we do not have the numbers of programmers working on a project like ethereum does or the reach but still steem is a solid blockchain that has a lot of potential.

If you directly compare it to ethereum we have three times their supply. But we are not a third of their price. If we were we would be at $100. That sounds high but it really isn't that crazy. But instead we are at $0.34. We have one of the most successful social media/content sites in the crypto space and have the capabilities of eth and we are at this time below a dollar. I'm not saying we should pass ethereu but we are not a coin that should be in the 70s on the market cap list.

I don't know why. And I know we had a bit of a bad rap with steemit but I think we can turn it around. Look at at all the great sites popping up that use the steem blockchain. Look at the games that are coming. It might take months before we gain some traction but we are heading in the right direction.

In the future there can be hundreds of dapps running on this blockchain and we can run some really great social media sites that excel in specific types of media. Plus there is communities coming and the ad revenue should really help increase the value.

Like always this is not financial advice. But I really think we are undervalued at this price. We should at least be worth $5-10 dollars or even $2-3 in this alt slump.

Am I crazy? Or has the world not caught up yet?

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Look at at all the great sites popping up that use the steem blockchain. Look at the games that are coming. It might take months before we gain some traction but we are heading in the right direction.

These are some of the big reasons I see potential in higher prices for the future when it comes to steem. There is so much going on with it and revolving around it, that traction is bound to build soon and the price will see a rise.

One thing I see being talked about a lot is how all of these dapps are starting to develop their own tokens and such and that that could draw capital away from steem directly, but I don’t honestly see that happening. With things such as steem-engine using steem as the trading pair for all of the tokens on there, if anything, I see that giving steem a boost instead of a dip. Having the ability to trade it as a pair with all the other coins, gives it that versatility and real application that we love to see. It goes hand in hand with the growth of these other steem-based or steem-derived tokens. Just my thoughts on things. I think steem is great and getting better. I may not have been here long, but I’ve found a lot of good in this place and I don’t see that positive force going anywhere any time soon.

Posted using Partiko iOS

I think we have some real value, but to be fair I also think we haven't capitalized on that value yet. What I would say is we have a good base to grow on.

While we do have many great apps and a great community, we have not stopped endusers, haejin and others from devaluing our investment. It's like having a really nice store, but not fighting shoplifters.

Also we've done almost no marketing, so it's like having a really nice store in an unusual neighborhood, but not telling anyone we are there.

Also our largest partner, SteemIt Inc is selling 800k Steem a month, so it is also like having a great store but your partner owns a lot more stock than you and keeps selling.

While I agree we are building a great foundation, we really need to get the NewSteem attitude out there in the world and let people know we are here and open for business. We have to fight bad actors and if we can raise the price and demand maybe we can offset SteemIt Inc.'s selling.

The economics that you pointed out can be simplified to the fact that there is excessive steem out there right now. In a normal economy that operates on an inflationary currency, they would aim to reduce inflation. In the case of STEEM, inflation is programmed and can only be changed with a HF. Its sort of like playing the role of the FEDs. Not everyone would agree with this method since it sort of ties into the whole centralized idea, but none of the less it is the traditional model to control the downward spiral of a currency.

What can we do to combat this if we aren't willing to change inflation rate?

Reduce the supply by adding new users? Thats a secondary problem. The primary problem to solve is why people arent willing to power up their liquid steem to constrict the supply.

One reason is steemit inc is dumping hard and the other reason is inflation is high enough that it becomes a free piggy bank for people to extract money out of. All bad things that can be controlled by the classic method of changing the inflation rate, but then the rewards for the honest users dry up. Quite frankly, its a double edge sword no matter how you cut it and while you can be optimistic that the growth can save us, the reality is that we have no mechanism to stabilize the steem economy right now, its purely free market.

Agreed, it's complicated. Since we have such a poor distribution another tactic is to just know the value will continue to come down some until we can create more value, more things to spend Steem on and some demand for new accounts.

The digital economy (pure digital transactions, similar to steem monsters) is not a reliable economy right now because it produces nothing of useful to keep us living and breathing (at least that i can see right now).

And thats where I'm divided the most. If steem is treated like a real world currency, then its value in USD has great importance. If steem is treated like a digital world currency, how its priced in USD has no meaning, so as long as we price things in steem and keep it stable for digital goods. If that is the case then people may continue to pour in cash (similar to how a traveler goes on vacation where they can leverage exchange rates).

It can go so many ways, and unfortunately there is no driver for it to go anyway at the moment except down because of market forces.

Hey @whatsup
Thanks for the reply. You are one of the names I look out for in my feed.

I didn't know it was as much as 800k, glad to see that is being worked on. Hopefully enough ad revenue comes in that we can actually start a buyback.

I'm in for new steem. :) There seems to be a lot more positive people here and it is great to see.

There is nothing to add to your comment - perfectly said

Indeed, we need another way to stop those frauds from parasiting off this chain other than downvotes that will never do anything than just mildly annoy someone.

Lacks exposure is what I feel. I don't think there is enough knowledge about Steem as a platform. Million odd users won't tip the balance in our favor or improve the price.

But, yes, I do agree all the games and dapps should help, especially, if they are able to attract non-steemians into the equation.

Staying positive!

Posted using Partiko Android

Yeah I agree that games and social sites that work as well as non-crypto games can get a lot of new people interested.

Steemit is always the busiest DApp:

https://www.stateofthedapps.com/dapps/steemit

So... from my rather limited experience, I would agree that Steem is undervalued.

On the ad revenue ...

I've been collecting BAT for a few months now. I know it's ETH, but it would be nice to be able to exchange that for STEEM... through some sort of tip jar.

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Information of BAT:

https://publishers.basicattentiontoken.org/

I read an article on how to get BAT out of Brave if that is what you are referring to. I tried it myself and am still waiting to receive the pay out as it is only paid out on specific dates. What I did was set up a youtube channel and link it to my Brave creator profile. Once that was set up I tipped my own youtube channel with all the BAT that I earned in Brave. If this works it is a way to get the BAT you earned out of Brave and into your own uphold wallet (which is what Brave uses for creators). Once it is in that wallet you should be able to move it to an exchange to buy Steem.

Sounds about right at the moment... hoping there will be some method with less friction later on in the development process of BAT. Since all incoming BAT payments to a publisher are from browser addresses, it should be possible for some service like Steemit to ask users if they wish to identity their browser using the "Rewards" crypto address. Then any incoming monthly payments could be converted by the platform rather than the user...

However, I'm relatively new to the inner workings of how to interconnect everything.

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Having bought into to Steem at 4x the price we are at now I would certainly agree with your statement. We seem to be bouncing about at that same price whilst BTC has nearly 4x over the last few months. Would like to see Steem at least double or 3x what it is now for sure. I too am hoping all of the Dapps will help make that happen.

I am just praying steemmonsters gets us new users and does the trick :D

-Not an expert

That's Amazing!

I think this is because the post rewards are very much dependent on big whales. If you post something that is not liked by whales they will blacklist and downvotes you. They have their own rules and regulation by different whale. For new comers this will gives bad impressions and they move away from steemit. and spread negative words in market. Over a time this is increasing and increasing. One of the factor.

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I often think the same as I make similar comparison. You would think that after Ethereum announced they would move towards Proof of Stake it would be even more exciting given how DPOS is proving itself with both EOS and Steem.

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Exactly

With a good marketing plan, all this new communities and some luck, we will be at $2.00 next year.

Or at least that's what I hope....

Have a nice day.

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Thanks for this post.

I think all the hard work down on the steem blockchain will be rewarded in no time we might see price jump in the coming months as steem-engine is really doing a great job with the ability for communities to create there own tokens on top the steem block chain! Wat a time to be blogging on the steem blockchain keep filling your bags the rocket is about to take off to the moon

Yeah I agree

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