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RE: Thoughts on the future of Steem and its success (or downfall) by Federico Pistono, best-selling author
Any chart with such a steep rice is to fall down. The question is whether it will be a correction or a definitive end of the underlying asset.
If you don't know how Steem works then you might think the whole point is to buy and sell Steem for quick profits without realizing that if you just power the Steem into Steem Power you get compound interest. Compound interest takes longer but it's a lot less risky and a lot more profitable. Steem Power is like the retirement fund for bloggers.
I think this post and a lot of others may come from the confusion about the value proposition of Steem Power vs Steem. Steem Power is why long term supporters of Steem get more curation power but it's also where the most money will be made because every day new Steem is created and given to the holders of Steem Power
PLEASE PLEASE, anyone reading these exchanges should please learn about Steem Dollars and Steem Power!!
Steem Dollars allow you to day trade Steem and when you hold Steem Dollars you can get 10% interest. This is better than cashing out into fiat and less risking than cashing out into BTC. So if you do decide to buy Steem in order to later dump back into dollars you should probably dump into Steem Dollars if you're trying to be smart.
Steeemit has a built in exchange right here: https://steemit.com/market.html
I encourage people to use that.
I don´t think Steem will fall because there is a real value behind it. Comparison with altcoins having no useful function is not good. I have read white paper and I have some Steem power and some Steem Dollars and I do not want to sell.
Anyway nothing rise to sky and it is not easy decision to buy Steem at 3 or tomorrow 10 or maybe later 100 SMD. Buying (anything)at high levels is driven by greed and panic selling is driven by fear.
I am sure at some point correction is inevitable. Remember BTC at more than 1100 USD and the correction to near 200 USD.
Correction may be inevitable but might not be as violent as we see with Bitcoin. Steem seems to have a virtuous cycle where the people who earn are given incentive to power up, which seems to raise the market cap, which seems to increase the payouts, which makes it even easier for new people to power up.
I could be wrong but that is a way it could go.
Exactly.