China bans Bitcoin, China pumps Bitcoin. But the major victim is Steem!
"China bans Bitcoin" is the perennial theme for Bitcoin bears. When bitcoin shows weakness in a key support level (e.g. $7500) and there is a news on Chinese regulator's hard stance, Bitcoin goes south. This time bitcoin went below $7000, 33% down from last month.
Previously, when Chinese president Xi Jinping declared that blockchain is an emerging technology and China wants to be leader in this field. Bulls pumped bitcoin from $7.5 to $10K.
Bulls make money, bears make money but pigs get slaughtered. It is the market makers (or market manipulators) who make money in both direction. Noob traders with leverage get caught.
However, the biggest victims are altcoins. When Bitcoin gets pumped up, altcoins see moderate jump. But when Bitcoin gets dumped, alcoins crash like domino.
In this, "China loves Bitcoin" or "China bans Bitcoin", altcoins get slaughtered regardless of their progress. One of the biggest victim is Steem since its major trade pair is Bitcoin in Binance and Bittrex. Steem is flirting with all time low (7 cents). One has to remember, when Steem hit 7 cents, it was a very sad position- 100% inflation, @dan and @ned split and loss of major confidence.
Today's #newSteem is more than 10X better than #oldSteem and Bitcoin is still 10X higher when Steem was 7 cents. How come on the Earth, Steem is flirting with all time low (only 4 cents to go). Is it the failure of Steem ecosystem or tyranny of the Bitcoin, the master and king of cryptocurrencies.
I would say both. STINC have failed measurably to re-brand Steem after all these bad news after bad news. Outside investors had very bad image about Steem: 100% inflation, project is ded since @dan left, 70% fire of its employees, bot farming, tyranny of whales, circle-jerks, delays in SMT release, oh..Steemit is Steem etc. STINC have failed to address these issues publicly in very bad fashion. No wonder Steem's ranking dropped form top 30s to low 80s.
On the other, having no major fiat pair in @binance and @bittrex, hit hard steem too. By the way, @hitbtc and @poloniex did not help either. Three million Steem can be dumped in coming months. Where are the owners of these 3 million Steem? Also, I don't see any effort from STINC to push @poloniex to send them to @null. There is no major attempt from STINC to add steem to more exchanges either.
Though the developments through STINC and community is at all time high, it is shame that Steem is trading at 11-12 cents. Steem community and STINC needs to brainstorm to work out a solution. A major solution could be have Steem in Coinbase, fiat/stable coin pair at Bittrex, Binance, Bitfinex, DigiFinex etc. Also, design a bot to provide liquidity to the market. Generate sinks for Steem through different sources. The idea from sinks can easily borrowed from a successful tribe @steem.leo.
Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions. This opinion is only for educational purpose.
Image sources: Most images are open sourced (e.g. Pixabay, Wikimedia etc.) with Creative common license. Some images are used with due courtesy to respected owners.
Thanks for reading.
@dtrade
Cryptominer , occasional trader and tech blogger since 2013
You can look from the bright side if you believe in Steem of course.
Buy opportunity?
We're sinking further and I'm waiting patiently.
I bought 1600 Steem at 12.4 cents it went down 1 more cents ;)
The problem is that now I am cash-starve, it is hitting low.
I bought 10Ks Steem in last December when it was 22 cents thinking catching low of bear market. Bear market amazes us with inconceivable prices.
As well as the bull market. I bought a lot at $3 in 2016. Auch! But also later on at 8 cents. This time will go even lower and I'm waiting. If not I'm good anyway. I have 100K and a shit load of other coins.
I am waiting as well... the EIP really pushed long term investors out... so almost nobody is left here... nobody wants to foot the bill of not being able to sell their votes like before and this way hedge the inflation of steem... the logic of EIP is that those passive hodlers should fuck themselves and leave...
Now steemit inc still has to go on dumping in order to pay their bills and nobody wants to enter with that shitty rewards curve and bot-hating... so I guess that the rate will keep going lower... exchanges removing Steem.. plenty of time to buy with even lower prices... only working SMTs and a correction to the linear rewards curve could help here... but I do not see this in the next few months...
I'm kind of the same opinion as you.
Dear @dtrade
I've learned about your post thanks to @gerber
Thank you for this update. I wasn't aware that China just (again?) banned bitcoin recently. That would surely explain current drops on the market.
STINC indeed has been nothing but disappointment for very long time already. My worry is that SMT will become failure and that will crash most of our hopes.
Upvote on the way :)
Yours, @crypto.Piotr
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