I am very bullish on Steem right now, just powered up to double SP, here is why.
Steemit is more useful than ever and the price is recovering. I think the price is now sustainable. It may be a good time to invest.
I remember the first and latest Steem bubble
The Steem price rose over 2100 percent in a period of only two weeks. Trending posts were earning more than 10.000 dollar and the quality of the content was relatively low. Most trending content was in the category ‘Introduce yourself’ or were posts explaining how interesting Steemit is. This was definitely not sustainable and a huge crash followed.
The price of Steem fell down to less than 0.10 USD, a huge loss of value. The devaluation of the Steem price directly effected the earnings and it became very hard to earn something. This stopped the hype and the Steemit platform left over with the part of the community that found satisfaction in using the platform without earning (or small earnings). A lot of people were questioning the future of Steemit.
Steemit survived and improved, now there is a strong fundament supporting the price
Steemit survived and several forks changed the way how the Steem distribution to the users was done. During the bubble there were huge earnings for a tiny part of the content. This created the hype, but left many content creators disappointed, because they didn't earn anything while delivering high quality content.
A long periode of price consolidation followed while positive changes were made and the user base became more healthy. Posts were written about more different subjects and the earnings were better spread over the users. This created a sustainable grow of the platform without a rising price (there was still fear under investors).
Maybe the Steem price will follow the same path as Bitcoin after 2014
I see a paralel with the Bitcoin price in 2014 after the crash. The price kept steady, but the innovation on the network and infrastructure was bigger than ever. The fear of the crash kept the price down while the network was growing. This created a deviation in price and value and made Bitcoin heavily undervalued. This was followed by a sustainable and relatively steady rise in price till today.
For Steem I expect the same path. In this period of consolidation the price was relatively stable, but the innovation and expansion of the network went on. I think Steemit is undervalued now and for the coming years a sustainable rise to and over a new all time high is very possible. I am a happy user of Steemit, a lot of interesting content is available and it is not to hard to earn something.
For the first time after the crash I am very BULLISH now!
This is no investment advice, I just tell the reasons why I am powering up today. Investing comes with risk and the responsibility is on yourself.