Investing in Bitcoin vs Steem vs LEO: gain vs risk
Bitcoin can be the safest bet but potential gain (according to my assumption) in next two years is 3X which is around $30K.
On the other hand, if so called altcoin bull run returns after BTC's ATH, then Steem can too break ATH too. Then at $8 a Steem, Steem's gain will be at 50X.
Now, we have seen how high LEO can go on FOMO. During ATH of Steem, if LEO can reach at least 0.5 Steem, then its gain would be 120X from current price point.
Therefore, LEO has the highest potential gain after Steem and BTC.
The only question is the which case the most possible. Off course, probability of BTC's case is the highest since all the news and talk is with BTC. But gain is also limited.
Now, Steem at current price of 15-16 cents can be bargain of a lifetime.One may ask why?
Think of when Steem hit all time low of 7 cents during April, 2016. It was a chaos, @dan left and Steem was at 100% inflation rate.
Now Steem is stronger than ever. It has one of the highest number of DApps and most successful DApps in the cryptoworld. The setback related to rewardpool almost found a solution in EIP. Though SMT has not arrived yet, but SCOTs with @steem-engine is flourishing.
As SMT developments are finally get progressed, SMT is definitely on the horizon this time. The biggest difference between SMT and SCOT is that SMT can added to major exchanges where Steem has already been there.
Moreover, given the large number of active and die-hard Steemians, there is threshold that Steem can dropped further. It could be 14 cents, or at worst 10 cents. It can't dropped to one cents due to this number game. Therefore, downside from this price point is very low.
Now, there are more than 50 tribes and more than 200 SE tokens. Some has unrealistic marketcap due to supply and liquidity issues. However, looking into the tokens LEO is one of the best maintained tribes with development, involvements and sinks. It is a tribe for investors after all who understand how to HODL too. Therefore, there is a good chance it will see more growth in its marketcap.
Recently, its marketcap went up as high as $1M momentarily. If it keeps growing and Steem breaks ATH again in the next altcoin bull run, then 60X gain is not impossible.
However, there is a good chance that LEO's price can fall in Steem if Steem price goes up in fiat. It happens to Steem all the time against BTC. To get out of Steem's trading pair, when SMT will be finally released, then LEO can be piggy backed on an SMT to be listed on external exchanges such as @binance or @huobi. It will bring large number external investors and reduce dependency on Steem's pair.
LEO probably has the highest gain potential and so does the highest risk. However, given the low price of Steem and low marketcap of LEO (less than $100K), downward correction possibility is quite low.
Finally, it depends on the investor's mindset to achieve asymmetric growth such as 60X vs 3X. For me, personally investing $1000 in LEO or $5000 in Steem rather than buying any BTC is risk well worth taking.
Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions.
Thanks for reading.
@dtrade
Cryptominer, trader and blogger since 2013
I am a big fan of LEO.
One thing you mentioned is the supply. There are only 4.2M tokens out and SteemLeo appears to have one of the more aggressive burn strategies out there.
This is a reason for users to hold the token. We already see very little sell pressure.
If we can see some additions that move this towards a financial resource center, then we could really see a nice explosion.
Have you ever considered converting all into LEO?
Converting all of what into LEO.
Your Steem and other tokens?
I believe the real supply is around 2.3M since 1.6M sell wall will be eventually burned.
Source: https://steempeak.com/steemleo/@steem.leo/steemleo-burn-report-2-we-ve-burned-half-a-million-leo-already
I think those tokens could someday sell.
Love the way u analyzed the market, it's always a game of numbers most of the tribes token are on downward trend because of the massive airdrop done by most communities and I think things are settling now, but when the price of steem starts pumping alot of these communities will take serious heat as most writers will start dumping which may cause serious down trend to most steem-engine tokens just the way btc dumps alts when every it pumps. Another token that has Leo's property is NEOXAG as they have done a good job with there token. But anyways lets keep our fingers crossed and continue playing the money game
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leo is still in starting phase but has a lot of potential
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Can I ask how you see steem being a 20x return at ATH when 0.16 x 20 = 3.20?
Steem reaching ATH from here would of course be a roughly 55x? Kind of seems like are you playing fast and loose with numbers to justify buying LEO.
Other than that your points are entirely valid. Steem has a much higher potential rate of return than bitcoin short-medium term(long term IMO). Development and community sentiment is gaining momentum
Sorry my bad, corrected. It's due to playing with too much numbers in head. For disclaimer, I have also significant amount of Steem.
To achieve more gain in LEO than Steem, one has to take more risk. My Steem has costed me 65 cents each from mid of 2017.
The purpose of the article is not to pump LEO but educate risk vs gain. I can happily consume another 100K LEO at 0.1-0.15 Steem if holders want to dump ;)
No worries bud. Enjoy your 60k steem. I will catch you someday :)
Guess i will edit my comment also. I only rejoined steem today so I can't comment on the viability of LEO. Just saw numbers that did not add up. Can you explain where you get those numbers from? In your initial post LEO would have a return 2.5x more than steem and now that you rewrote it the return is 2x steem?
EDIT EDIT: Ok I understand. You can save your time replying. LEO price is based on steem and you are working things out at 0.5 steem. Enjoy your day/night :)
LEO is traded very recently between 0.15 to 1.5 Steem. I have just picked a justified random number of 0.25 Steem (https://steem-engine.com/?p=market&t=LEO). Rest of the numbers is just for examples. BTC can reach $250K, Steem can reach $50 or LEO can be $1, who knows.
For my personal reference, I have bought BTC at $75, LTC at $1.5 and off course Steem as high as $2 and low as 16 cents. I have to yet make any profit from my investment since I lost all my earlier coins in daytrading and future trading. However, never a mistake, always a lesson. May be this time, I am prepared enough!
More on LEO's price history: https://www.steemleo.com/steemleo/@dtrade/leo-and-pal-tribe-updates-from-a-trader-s-perspective-leo-fomo-continues-and-pal-in-downward-spiral-without-whale-s-support
Cool thanks for the info bud. Day trading is a tough game but a damn fun one(over 2mln in traded volume). I bought steem all from 0.75 up to 1.50 and got out near the top so I was lucky. Future trading, margin trading I tend to avoid. Like you say it is all about risk management. It sucks you didn't get your bags out in time but you are so right in realizing now may be a once in a lifetime opportunity.Average down as much as you can stomach and enjoy the ride. This is now a 2021 game in my opinion.
Me personally I will continue to buy steem weekly until next summer and try my arm at being a socialite :)
I will actually learn a bit about LEO since you took the time to inform me.
Welcome abroad ;) If you write blogs about your projections and experience, you can add #steemleo tag to showup in steemleo.com frontend or write directly at steemleo.com. I have also added you in my up voting list.
Aww isn't that just lovely :)
I must make an introduce myself post tomorrow. After that I will blog for sure. Thinking of starting with what I learned from going from noob to decent trader to exiting the market and blowing most of everything I earned on holidays etc hahahaha
Also where is this marketplace for LEO and other tribes? super noob question haha
https://steem-engine.com/?p=tokens
You have to login to steem-engine using steem keychain (a chrome extension) or using you steem posting key.
Awesome thanks bud. You have given me a lot of homework today ^^
No problem.
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