Steem Is Dropping Fast. Is It A Good Time To Buy?
The price of steem is dropping so fast today!
I'm not sure what to do. It seems like it's just leveling out to what it was before steemit opened to the public. You can see that the price of steem shot straight up and has been slowly coming down ever since.
What is getting me is, when is it going to stop?
Will it be $0.40, $0.30, $0.20, or even lower?
The point that it stops, I will transfer all my steem dollars (SBD) into steem power (SP). I can see this site really taking off. Especially, once it makes its way out of beta. The trouble is going to be trying to time it right.
The problem is, there is a couple of days wait for buying steem from your SBD account. That is going to be tricky to time.
I think I will try and time it a few days before it reaches $0.30 and buy as much steem as I can.
I wouldn't be fooled by the fact that it's falling. I think it's just the market correcting for all the people joining the site back in July. Although, I could be wrong and steem will just drop into oblivion. If I'm wrong, it's not like I spent any of my actual money to buy steem; just the author / curation rewards that I've been getting.
Well, let us think a little. Steem goes down as most people, especially newcomers, do not get proper reward for posts, so they have no interest to buy steems. People just see unfair reward system where the limited number of authors get thousands because they are in whale's white lists , and the rest get pennies. The whales just can not track every post, and the others have too little SP to create meaningfull reward. So whales do power down and releases SP. Supply of steems for this reason is bigger than demand so steem price is falling. I guess this situation will change only if most whales stop power down or steem power distribution will be more such that awerage post will be rewarded at least a dollar. In this case the demand for steems will be biggeg then supply and steem price will rise. So, from my point of view, we should track SP distribution ratio, average post author reward and number of whales powering down in order to decide to buy steems or not to buy.
That is why I won't be investing with outside money right now. You could be exactly right. The whales powering down could do the whole thing in. I'm hoping not, so I'll take the chance and use the SBD instead of cashing it out. Even as I type this right now, the price has gone back up to $0.90 so maybe it's going to start going back up, or maybe it will fall back down some more first.
Steem VS Bitcoin VS Fiat, based on intuition and my experience of money
Very good thoughts. Pretty much what I think will happen.
True! You don't need to spend your own money, just manage what you earn here. I think it's an awesome time to spend money on Steem.
Exactly. No need to invest with outside money. If everybody did this, the price would go back up.
If you believe in the underlying principles of Steem and Steemit, there is not a bad time to buy it. Price goes down, price goes up, your purchase is an investment in the future of the platform. Should you wait? I don't know. That more depends on whether you are looking to turn a quick profit or are investing more mid to long term.
It's long term for me. The thing is... If you buy steem now at $0.85, then it drops to $0.20, that's a whole lot of steem you could have bought. Plus, when the price goes back up to $3/5/10 etc. it would have been better to buy at $0.20 for the profit side of it.
Of course, but how low is it going to go, and if it does go back up how quickly will that happen? If you are waiting for $0.20 and it never makes it, what do you do when all of the sudden its $3 again?
That's the tricky part indeed. Especially with a 7 day wait on buying steem from SBD. I'm not waiting for any special number right now. I'll be clicking that button very soon. When? I'm not sure yet.
I did read a post about @steemit causing this whole drop by powering down. Maybe keep an eye out and if they/it stops powering down it would be good indication things will start turning.
Best of luck on figuring out when to do it! Have a great one man!