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RE: Massive power-downs versus less investment. Perhaps the reason why the price of Steem could further take a hit in the coming weeks and why it's a win-win situation.
Thanks for calling attention to the selling pressure from new writers who earned a lot of SD from their first post and (I have to admit, prudently) cashed out.
There's also selling pressure from the miners, many of which want to cash out to finance the power for their rigs.
Right now, that selling is not being met with corresponding buying pressure. STEEM's success as an investment is going to depend a lot of the latter. Right now, there are only two reasons to buy: to power up or to bet on STTEM rising (speculative demand). As long as STEEM's falling, the latter is iffy. Let's hope bargain hunters overpower trend followers!
Haha. I didn't know about the selling pressure from miners, but if that's true, there's another reason drawing the price down although the use of the funds to further their mining rigs is probably a good thing. I'm also assuming there's less buy pressure versus sell. Powering up for cheap is one thing encouraging buys but then again people may hold off to bet on Steem as we both said. Thanks for your feedback. Steemit is a great idea and i hope that is more than enough to withstand all this. Hoping for the best for Steemit too :) Let's all hope :)