People Need to Stop Worrying About the Price of Steem
Disclaimer: I'm not an expert on this stuff and these are just some observations I've made as a long-time member of the crypto community.
As the price of Steem rocketed sky-high from $0.24 on July 4th to $4.31 on July 14th, the Steemit community went wild. All over the front page you'd see people celebrating the rise. Tons of people profited from it, including me. So, it might seem a little crazy to be wary of all the excitement. But please hear me out.
I've been involved in cryptocurrencies for about 2 years now and I've seen tons of them come and go. Some get pumped to extreme prices, dumped, then (most of the time) forgotten about for a while. Even coins with arguable utility - which is what scares me. If Steemit becomes highly dependent on speculation on what it could become for growth instead of what it is now, there's a chance the when the bubble pops (as it always eventually does), lots of people could get upset. Even now people are dismissing Steemit as a pump and dump.
Also, a site full of investors constantly posting about the price isn't attractive to the everyday social media user and it definitely isn't sustainable. A small shift in the price can turn into a sharp downtrend and then a sudden crash, prompting most users (investors) to jump ship. That isn't to say it couldn't make a comeback - many coins usually do. It just takes a long time for the hype to be replaced with meaningful demand.
An unstable currency is also pretty unattractive to people, but that's less of an issue because it doesn't necessarily affect everyone (not everyone buys from exchanges; some just use the 10 SP from registration). Creating a bubble right now makes it more difficult for the project to gain traction further down the line because some people and news sources might write off any advancements as temporary or unimportant because of what happened in the past.
I don't expect people to listen to this post, I'm just making it to voice my opinion. And yes, I do realize how hypocritical it is to complain about others talking about the price while talking about the price myself. I felt like this was something I had to make.
You mentioned that you've seen many coins come can go "even coins with arguable utility", but I've been around crypto for quite a while and can not remember a coin that has immediate and unique utility that only IT can fill. Most coins have utility that can be used in the future, (Ethereum), or that have many other viable alternatives which demand far less of a learning curve (bitcoin or others). Steem is the only coin that has utility NOW which only it can fill. That's why it is so unique.
Like the post. I agree with you, the value of steem isnt about the price of it. I would love (feeling like a broken record now) to see the $ symbol in upvote replaced by the steem symbol itself. Its a little difficult to navigate currently, but thats changing every day. A social networking site that allows users to provide their content, while still owning their content. That's the real value
Great insight. However, as a noob here, I think the fact that it's a utility as a social medium will outshine any pump and dump fears.
I kinda agree with you, prices go up and down in cryptos and Steem has been doing great so id be happy where we are now for a while.
I'll also drop my small guideline here :).
https://steemit.com/cryptocurrency/@andu/welcome-to-cryptos-and-beware
Price don't reflect the value Steemit.com...same as in traditional finance, the price of stock is different from the value of the company.
I have a few friends that tell me Steemit is legit, and I had one friend said its a pump and dump, so far I'm really loving Steemit. Steemit for the future!