Selling STEEM? Are you nuts?
In their recent article titled "Bubble? Think Stocks and Real Estate, Not Bitcoin" The Cointelegraph tells us that crypto may not be as overvalued as many might have it.
Even after the rapid increase in price, the total market capitalization of all cryptocurrencies is dwarfed by other asset classes like equities, bonds, or real estate. A single company - Apple - commands five times the market capitalization of all cryptocurrencies in the world put together.
Indeed, the total market capitalization of the whole of crypto is still less than 1/5 of the capitalization of Apple. What's more, the relative percentage of world base money supply is still infinitesimal. Remember this post of mine from just a few short months ago, The Crypto Boom! Part 1: Keeping Perspective? Well, putting aside the approximate relative change of 0.1% , things are pretty much the same. 😄
There’s no significant change in the amount of that “unrestricted printing of fiat” either, and that means that the inflation threat is far from disappearing. In May, ZeroHedge reported on this from BofA:
BofA's Michael Hartnett noted that supersized central bank intervention which he dubbed a "liquidity supernova" is "the best explanation why global stocks & bonds both annualizing double-digit gains YTD despite Trump, Le Pen, China, macro..."
Just look at the chart from Citi!
Which brings me to STEEM.
If this is the financial backdrop of broad money supply that is starting to flood into the ultimate hedge against fiat debasement, that is to say, into a cryptocurrency composite that is still less than one third of a percent of that total composite broad based money supply, how in the world are you selling STEEM at these prices? Now, I can understand sophisticated investors playing short term moves to get some minor price improvement, but you whales who have an incredible price basis to begin with, my question to you is: are you nuts? Okay, if you’re just taking minor profits to buy your dream home, or to fix up the one you have, I guess we’ve got to enjoy some of the fruits of our labors, but if you’re cashing out hard, I can only shake my head and wish you the best of luck in finding another long term investment that beats STEEM. Finding something better than cutting edge crypto is not going to be an easy task, and the best of luck to you.
In finishing, I’ll just leave you one more long term view, this time of a logarithmic BTC chart tweeted by @ KRMA_0 yesterday with the following caption:
There is no coming back from kamehameha.
In log terms it doesn’t look like such a big run-up, until now, does it? And look at where it might go (and we're not the only people out there talking about 6 and 7 figure long term estimates either).
And where is STEEM going in the meantime?
Got to keep perspective. 😎
Good luck.
waoooov perfect . i want just one vote please
There is no coming back from kamehameha! HAHAHAHA i love it.
Let´s see what happen, exiting times are coming
Saludos!
Very good article. The traditional investors have to change their mentality soon and better focus on the crypto world. We have to be ready for that moment.
Let's keep Steem alive forever!
Resteemed to improve visibility of this post.
I think it's already happening. Little by little those traditional investors are making their way to crypto.
https://www.forbes.com/sites/laurashin/2017/07/12/crypto-boom-15-new-hedge-funds-want-in-on-84000-returns
http://www.businessinsider.com/bitcoin-price-surge-leads-to-growth-in-hedge-funds-2017-8
https://qz.com/1064821/bitcoin-and-ethereum-could-help-hedge-funds-juice-their-returns/?utm_content=buffer8d457&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
My favorite is this CNBC Brian Kelly piece from last month with his "wall of [institutional] money ready to come towards this market" and how he'd take that BTC 10 to 1 investment "any day of the week and twice on Sunday". Love his enthusiasm, coverage and delivery. Great clip!
https://twitter.com/CNBCFastMoney/status/894680240890548225
And thanks for the Resteem! Much appreciated.
Disclaimer: I am just a bot trying to be helpful.
Great read. following you.
Nice. I see!!
Judging by the number of views, I think that makes two of us.
I know summer vacation still isn't officially over, but this is ridiculous. 😝
Lulzz!!
Very interesting, hope steemit will grow and grow...upvoted, resteemed and now followed
Thanks
Nice analysis. With this recent dip, I feel even better about diverting some more money into steem.
They're very enticing prices indeed. Bon appétit!
IDK why people would be powering down now especially with STEEM at multi month lows! I get it if they started back in May or June when the currency was higher but good lord why not wait awhile? Why not support the platform and earn dividends through curation rewards and (yes I know this is controversial) the occasional self-vote? Most all of the whales here do it. Some do it over 50% of the time (self voting). I'm not judging the self voters. If people invest their money here they can do what they want with their votes.
I've been doing the opposite...I've been buying STEEM regularly since mid August to supplement my earnings from blogging. And I hold over 95% of my account value in SP and I'm not powering down for YEARS.
I saw a post about the highest payout ever a few weeks ago (it was $30,000 and it happend in 2016) and I did a little research and the girl who owned the account raked in tens (maybe hundreds) of thousands of dollars and then quit posting many months ago and has been powering down and withdrawing STEEM ever since. Like almost ALL of it at this point.
I can't imagine why people wouldn't want to keep their SP. I see tremendous potential and selling STEEM right now and powering down is kind of like selling Apple stock for a 10% gain if you bought many years ago. Everyone knows how that story turned out...biggest market cap in the world. I don't think STEEM is gonna hit $50 or $100 per coin or anything crazy like that but I think we could see it double or triple in the next year. And the curation rewards alone if you have a decent sized account make it worth staying invested.
Obviously I feel pretty strongly about this lol. Nice post my friend.
Great article!