There Is A Floor To The Price Of STEEMsteemCreated with Sketch.

in steemelo •  last month  (edited)

Things are getting very interesting with the price of STEEM. Like much of the crypto market, it is falling. STEEM, however, has the ability to drop like a rock.

For this reason, we see a lot of fear. Will STEEM go to zero? Will it become worthless?

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To show how there is a floor in place, I will start with the numerical absurdity and work from there.

I can guarantee you there is a floor above zero because I, myself, would provide it. If I could get 100M STEEM for $1,000 I would do that. There is a floor above zero.

Of course, it is effectively zero because that results in a decimal point and a 1 with a lot of zeroes in between.

Let us at it another way and I will use 4 others in addition to myself who I know either are buying STEEM or are intent on doing so if the price drops.

If I am willing to buy 100M STEEM for $1,000, do you think @edicted would pony up $2,000 for that same amount? How about @stackin, would he toss $5K? Let us not forget @exyle, who is a regular buyer; would he pay $10K for 100M STEEM? And finally, @theycallmedan has a ton of STEEM, but could he pass on 100M STEEM for $100K?

I would venture to say if any of these people were liquid for that amount, they would jump at the chance in a heartbeat. Of course, even the last rate, is $.001 per STEEM.

To be honest, that floor is not much more exciting than the one I present with my $1,000. It is still a crappy price.

Now, let us be a bit more realistic. There is no need to consider 100M STEEM since the entire liquid market is about 120M STEEM. How about an amount that is 1/10th that. Having 10% of the liquid STEEM mopped up and put into stronger hands (non-sellers) would make a difference.

So now, what if STEEM was a penny?

This would provide 100 STEEM for every dollar. Think about this for a moment, one could be an instant Dolphin for $50.00. If one wanted to be a Whale, $5,000 gets him or her there.

Once again, do you think that @edicted would take $2,000 to get 200K worth of STEEM? Would @stackin pull out $5K to become an instant Whale? We know @exyle is still adding because he likes having more STEEM and all he can do with it, would 1M for 10K interest him? And finally, @theycallmedan could reel in 10M STEEM for his $100K.

I can promise you, to become instant Whale, I would be liquid for $5,000 myself.

After following these people for a while, I feel confident in saying that if they are liquid for those amounts, they would not hesitate jumping at it. If we add all that up, that is 12M STEEM that was sucked up by 5 people.

That makes the 500K or whatever Steemit Inc is selling look like nothing. It certainly buys a lot of time when 10% of the liquid STEEM is removed from the market and powered up.

So we can safely say, that 1 cent is a floor since massive buying from just 5 people would take place.

Here is a comment that Dan left on a post earlier this week. There is a price where he is a massive buyer.

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Of course, Steem is a lot more than just 5 people who are committed and dedicated to its success. There are also a lot more than just these individuals who would buy STEEM.

There is also the fact we will not go from 18 cents to a penny instantly without a flash crash. Prices do not work that way. They keep moving in stages, up and down, in some kind of trend. Of late, this is obviously in a downward direction.

We have somewhere around 15K-20K different individuals on Steem each day. Are there 500 of them who will buy STEEM at a certain price? My conclusion is yes there are.

At what price is the great unknown. However, as the price drops lower, the floor gets closer. At some point, those 400-500 people are going to jump in and start taking huge blocks of STEEM off the board.

If we look at 10 cent STEEM, we realize that $500 can turn one into a Dolphin. For the aforementioned $50, one can become a Minnow. Obviously, this is not as mouth-watering as the amount of STEEM receive when priced at a penny, but it is still a nice boost to any account.

Are there 500 people are STEEM who would add thousands of SP to their accounts if the price hits 10 cents?

Perhaps it will take the last low from March of 2017, when STEEM hit 7 cents? Or maybe it is 5 cents?

Whatever the level is, there is a point where the dedicated members of STEEM will step in and buy massive amounts of STEEM simply because the opportunity is too good to pass up.

Remember, the development of applications on STEEM and what is being rolled out is already taking place. Lower STEEM pricing might be slowing the process but it is not stopping it. Just think of the Witnesses, most of who are developers and are working on projects themselves, and the buying they would do if the price is single digits.

To lay it out at 5 cents, 12M STEEM at that price is $600K. Are there 500 people on STEEM who would put up an average of $1,200, netting them 24K SP each, in this ecosystem? Would you like to have your account grow by 24K SP?

I think there are hundreds of people who would jump at the chance. The question is at what price we drop to before that happens?

5 cents? 10 cents? 15 cents? Somewhere along the way, we will see massive buying from those who are committed long term to Steem.

It simply will be too tempting to pass up.


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You can count me in as a buyer.

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Yes you’ll be a whale....IF prices rise again.
This could all work out but everyone here needs to know that there is a real equal possibility this blockchain could fail like stocks sometimes fail and disappear. This is high risk, high reward.

I'm not convinced it would be a price floor. If Steem would be as low as 1 cent, I would be one of the massive buyers myself. But what happens after that moment? There I am, and you, and the other 5 or 10 odd buyers, with all that Steem no one is interested in.... Where would the value come from then? If all available liquid Steem is in the hands of the last few interested buyers, what keeps then the price of Steem falling to zero? If there are no interested buyers left, there is no market value.
Understand me correctly: I do believe in the potential of Steem. But I do not believe 10 or 20 interested people guarantee a price floor. It needs a little more than that, in my opinion.

Posted using Partiko Android

I think there would be hundreds of dedicated people who buy massive amounts of Steem then.

Posted using Partiko Android

The point remains the same: if the last (10's or 100's) have bought all remaining liquid Steem, then what? No market interest and thus no value.

Probably I'm to pessimistic.

Posted using Partiko Android

Then we will sell it to businesses.

Posted using Partiko Android

The point remains the same: if the last (10's or 100's) have bought all remaining liquid Steem, then what?

Ah! don't worry @partitura. If only the last (10's or 100's) purchase the remaining liquid Steem available. They can always start a new trivia game in a big circle around the table. ;p

Those people buying a truck load of steem are prob the ones powering it up. Then supply and demand takes over. If development continues, and the majority of steem is in "strong hands", then I think it would just be a matter of time

I hope you are right. Especially when one of those "strong jamds" would happen to be one of mine. Not nearly there though. For that to happen the price would indeed need to fall to one cent. Be careful what I wish for....

Posted using Partiko Android

I think the altcoins won't rise till BTC hits an all time high again like in the last bull run. The BTC dominance decreased once it was reached and money moved into the altcoins. Therefore, I think we are a few months away from this and could see more sideways action or downwards for steem and other alts.

Don’t forget, at the time bitcoin transactions were extremely expensive so people had to buy up altcoins like litecoin, monero, ether, dash, ether classic and more ... but if bitcoin transactions stay inexpensive there won’t be as much of a spike for alts

True bitcoin is improving, but I also imagine when bitcoin hits all time highs again, people will see all the cheap alt coins they can make great returns on compared to bitcoin.

The price of downward collapsing Steem is and will be quite a bit lower if priced in appreciating satoshis.

I have a genuine question: at what price does the entire chain stop operating or is that a crazy question? When does the network cease to have enough processing power to keep verifying actions and it all grinds to a halt?

Pre-Mira it was 4 cents I think for witnesses to break even. Since most haven't upgraded to Mira, I'm guessing it's still the same. That's not a point where the chain stops functioning though, plenty of die-hard witnesses here who are willing to pay out of their own pockets for a while to keep this thing going. I mean look at EOS as an example, their break even point is around $4, but the price is lower and it's still going strong regardless.

Steem's break-even point is a factor of 100 times better than EOS? Hilarious. Silly RAM issues.

EOS block time also plays into that along with RAM. Half a second is stupidly fast for a blockchain.


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  ·  last month (edited)

Seems after my buy and powerup of 1k yesterday, I missed another opportunity during the dip at night. Moral: if you want to accumulate, have a few buy orders in all the time 😎

Posted using Partiko iOS

Definitely gonna try to power up while the price is low. That being said, since I came back i've organicly gotten a lot more than I was when I used bots before. The recent changes all seem very positive, and the dedication of people like you have not faulted. I very much think Steem has a strong future, and plan to help it grow the best I can.

Posted using Partiko Android

I bought a large chunk last time it was down around $0.10 and I've already got my finger on the button this time too. Just waiting patiently for the right time to press it.

I’m there...been buying all the way down from $.8. If it hits $.1 or even $.05, you can bet I’ll be selling out what I have on CB and buying, baby!!!
!BEER

It's almost like a game now. Everybody's racking their brains trying to predict the price at which the others will lunge at the coins up for grabs on the market.

My truck is ready.

mine is too old friend :)

You still have some time to get it ready, hehe.

The only thing I'm concerned about is the fact that Steem is keep faling down the CMC
.
Although I'm in favor of low price I assume if we keep on faling Noone will even recognize the potential steem has...
70 mil market cap is pretty fucked

It will have to be sold to businesses outside of the cryptosphere, not speculators whose eyes are glued to CMC.

I buy when steem start falling form $0.60 my last buy when it get into $0.22 since it keeps on falling, I have some fund ready to buy when steem get on the floor. My target become at least a baby dolphin hopefully see it floor at a penny. Seeing all weak hands jumping out is good.

Wow, I didn't realize that low number was as recently as March of 2017. I joined six months later, and within three or four months we were at the ATH. It just shows how quickly things can turn around, one way or the other, to me.

There will be plenty of buyers if this ever gets to sub 10 cents, and I will be one of them. And anyone on the network now who complains in a year or two's time about it being too expensive to buy in will be receiving strong words.

Large holders will not let Steem die and will be filling their boots shortly imo.

As someone here for the utility of the platform, not for investment, it is impossible to reconcile the utility of the product (steem engine especially) with the plummeting of Steem. I'm only recently taking much of an interest in the entire crypto world.

It just seems like a disastrous idea to mix a speculatively traded token of value with a developing system to do business on.

Steem-engine should also have a way to price tokens in USD and independent of the price of Steem.

I would count me in, at some arbitrary point... but you miss one little detail.
At some point, it becomes like buying junk bonds. You buy a ton of different junk, say, 100 different tickers at pennies on the dollar, and know that, while 99 will fail, that one that makes it will be enough to not only recoup losses on the 99, but provide a profit, on lost opportunity investments.

For me, I worry only about attracting not speculators (What I described above), but about attracting investors, who see long term growth. I am hoping that, there is some better plan for getting more social bloggers, more positive perception, more non-crypto people interested, and getting back to seeing growth in users.

GROWTH in users is the key to driving investment.

  ·  last month (edited)

Basically that would be the end of Steem, you know a penny price would put Steem below the 500th place in market cap better said out of sight for any potential investors, most people will have left so even ads will not bring a return, if you buy all of that Steem for a penny what you would have basically is, say, 500 people who own 3 million dollars of a coin that is going nowhere except down. I think there is a critical number, once you go below that it is goodbye, regardless of whatever positive spin anyone wants to put on it.

How GOLOS supports this theory?

https://coinmarketcap.com/currencies/golos/

Marketcap of 3M was too high, so it became 1M

Who cares? Not a single person

Change is constant, let’s continue building in Steem because Steem is ready for us! Long term is the hope!


Posted via Marlians.com

I just curiuos, why everybody is talking about Steem's price vs USD, and not vs BTC?

If i was buying at 80K satoshi, and even at 240K satoshi , I would be complete idiot not to buy more at 990 satoshi , or lover.
But... maybe <1000 satoshi price is just a dream. Looking at today's chart...+7% in the last 14h.... and it looks like a nice spike breaking out of the trend:

!COFFEEA

Posted using Partiko iOS

Dan Larimer sold $4 billion worth of EOS. Wouldn't take much of that to put STEEM back in a real happy place; although I imagine he'd wait until some specific staffing decisions had been made..

Honestly, if the price hits around ~12-14, i'll prob pull the trigger and become a whale lol. I feel like it might drop lower, but i'd i'm scared to guess the bottom with an opportunity like this!

I would pull out 10k if that were to happen hahaha

$5k for whale. I'd be there in a second. I've already picked up a bit at these tasty prices but if it keeps dropping i'll just keep adding to it.

I think you misspelled tag "steemleo" into "steemelo", @taskmaster4450

Yep! that's right @javirid.

erm... Wadda bummer @taskmaster4450. You screwed everything up on my way to become a steem whale.

I couldn't curate this post on 'steemelo' tribe platform. It's a real shame. Because I was planning to give you a ton of 'melos' tokens with my almighty staked melos SP upvoting this post at 100% of my VP over there and obviously, I was also aspiring to get back my juicy 50% rewards payout as a diligent & smart Curator of the steemelo #tag and front-end. 😞

Now, how the heck I'm gonna earn quickly those $1,000 to buy me those 100M STEEM if it drops under a dime? Huh? ;p

Idiot, a penny is 0.10 dollar cents. That's 10 for a dollar, not 100.

I am idiot @nokodemion?

There are how many pennies in a USD? 100.

Thus, if STEEM is one penny, there are 100 STEEM for a dollar. A penny = $.01....what you wrote is for a dime.

Perhaps, before calling another names, make sure you are remotely correct.

  ·  last month (edited)

People get excited to outsmart you for one brief second only to realize later what happened, haha! However, it could well be they won't realize it at all because someone along the way taught them that a penny is 0.10 USD. Not a big deal though. Learning new things is never too late. Better of course to learn before calling another person an idiot.

PS I'm buying all the time regardless of price.

Duh!!! Fail!!!

This is funny to watch. How do you feel now?

Posted using Partiko Android

I agree. We will see.

I nibble all the way down lol....maybe take a ginormous bite if it gets sub .10 :D

coffeea Lucky you @taskmaster4450 here is your COFFEEA, view all your tokens at steem-engine.com Vote for c0ff33a as Witness

That steem at 5 cents and I would be part buying 1200$ making me an Orka easy

Posted using Partiko iOS

60M more SP for Steemit Inc to dump and the floor will be reached....

I will start to accumulate below 10c but Steem might continue to fall.

Posted using Partiko Android

And when the price goes back up everyone it will say it wasn't fair that the diehards got in super cheap. The cycle continues on.

If my limit orders get filled on Binance (Steem/BNB Steem/BTC Steem/ETH) I'll have 20k more coins and very little risk taken.

Thankfully the price of Steem/USD has no bearing on development. The quest to bring value to the space chugs along regardless of specific price action.

  ·  last month (edited)

I am buying eache month for same amount last 15th month :)

!BEER

Ya if it gets down near 1 cents I will get enough to make me a dolphin with some to spare and I am sure I am not the only smaller account that will try to boost a level

Posted using Partiko iOS

When I joined, Steem was $1.60... until now, I've never seen Steem less than $0.25. Seeing the prices drop under twenty cents makes me crazy.

Posted using Partiko Android

i am agree

Posted using Partiko Android

I have a similar article: What if Steem's price goes to 1 cent- what can happen? that I wrote a day earlier :)

You can count on me to be #steemmillionaire at 1 cent even at 5 cents. We also need 140 #steemmillionaire to hold Steem in price and rank-wise.

Congratulations @taskmaster4450!
Your post was mentioned in the Steem Hit Parade in the following category:

  • Comments - Ranked 5 with 62 comments

Keep in mind at 100 million you effectively become the owner of Stinc. So they def. won't want it to go to zero they will buy back before that happens.

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