Is Steemit Dying?

https://tool.steem.world/Post/Stat

https://www.alexa.com/siteinfo/bitchute.com

Much as I hate to have to post this, I feel someone's got to do it so that steemiens are aware of the situation, in the hope that the reason/s for this can be ascertained and corrective measures taken to remedy the situation.

I've been looking at a few statistics. Now I'm no statistician but the stats for Steemit don't look good. Indeed it looks to me that if it continues on the same trajectory the value of Steem could well fall to zero.

I realize that cryptos in general have been taking a bit of a beating lately but I haven't seen any other crypto decline to this extent.

Besides that we have that huge drop off in posts and authors.

I also took a glimpse at the trajectory of Bitchute (above) and noticed it was steadily rising.

This seems somewhat counter intuitive. Whereas you have two very similar platforms, one that pays it's participants and the other which doesn't. One would naturally expect that the paying platform would outperform the non paying one, but that doesn't appear to be the case here.

I must admit when I first read the Steemit White paper I strongly suspected that the Steem currency wouldn't be able to compete with coins like Bitcoin. Even though it could apparently far outperform Bitcoin in speed and efficiency it lacked one of it's most important key features.i.e. the hard cap on the amount of coins that can ever be created which makes it deflationary by design(Satoshi was wiser than most give him credit for) whereas Steem is inflationary by design.

I wrote a small article on this issue called Bitcoin and Deflation at: https://steemit.com/bitcoin/@amd64/bitcoin-and-deflation

While there other issues which could discourage the use of Steemit such as the lack of a view count(so you have no idea how many views any of your posts get, if any)which can be very frustrating and like being in a rifle range and never being able to know whether you've hit the target or not.
There's also no private messaging which makes communication with other participants very difficult, and there seems to be a lot of inequity in the system.

There's some possibility that some of these issues could be causing a decline in user ship which could in turn be partially to blame for the drop in the value of Steem. However I believe It's almost certainly the other way round.

If you think about it...Why would anyone buy Steem? You wouldn't want to buy it to hold it if you had any sense, since it's value will decline over time due to it's inflationary nature. (although it's inflation rate is decreasing dramatically due to recent changes to the system there are no plans to reduce it to zero or below, which is what would be required to make it competitive on the crypto market) So the only reason I can think of would be to invest in Steemit in the form of Steem Power.

Now...Why would anyone sell Steem? Well once you earn it on Steemit, unless you want to use it to power up, you'd be be wise to convert it to Bitcoin if you want to save it or convert that to fiat if you want to spend it.

So if we look at this from the point of view of the crypto market as a whole, what we'd see is a whole lot of Steem being sold but not so much being bought i.e the supply is greater than the demand. As long as this is the case the price/value can only go down.

I believe the Steem blockchain was created by Daniel Larimer who also created Bitshares and Eos. While Dan is certainly a genius when it comes to designing crypto currency systems it seems he's not so bright when it comes to crypto economics e.g. despite Bitshares being around for years it's currently valued at $0.01. and Steem at $0.7318.

So if the value of Steem goes much lower I can see a lot of the big players bailing out and putting their SP on the market. This will only cause steem to crash even further. Probably down to 1cent like Bitshares.

The only way I can see out of this dilemma is to reduce and/or cap the the supply of Steem such that it becomes deflationary. Then it could hold it's own even as a stand alone currency in the market where it could be highly competitive due to it's speed an efficiency.

Then with a few tweaks like View Counts and Private messaging we could see a major revival of Steemit.

Please Resteem this post to try and get it some visibility, as it could possibly save the day if see by enough people.

Thanks