I invested $1,000 into Steem 2 weeks ago, now I have $500
Two weeks ago I decided to buy $1k of Steem. This was after becoming frustrated with how little SP I had and by not having the ability to reward followers with a profitable upvote. I bought $1k of Ethereum, transferred to Binance and bought 230 Steem at a price of $4.3.
At first things started off great, I was able to generate $0.06 with a single upvote and I was getting much higher engagement from comments I was posting on articles where I had also upvoted. My follower count was also starting to accelerate.
Then the Steem price started to slide, I saw my Steem wallet depreciate from $1k to $900, from $900 to $800, and so on and so forth to where I am now: $500.
How many other investment opportunities exist where you can lose half your money in two weeks when the fundamentals of your investment have hardly changed? The slide in portfolio value has vastly outweighed any Steem I have been able to accumulate from posting over the last two weeks.
But wait, you haven't sold right?
Well no, so all of this is a paper loss, it is unrealised unless I sell and I believe Steem will bounce back from here to hopefully reach new heights once adoption really picks up.
If the value of Steem continues to fall from here, I would consider buying more at the $1 mark and significantly dollar cost average down my initial investment, but time will tell where things go from this point.
What's caused the big depreciation?
There are many theories circulating about what the underlying reason for this 2018 bear market. The most recent is some analysis on a Mount Gox trustee who has sold off significant portions of Bitcoin for Fiat in order to repay their creditors. Each dump has coincided with a large devaluation of Bitcoin.
Now I'm no expert in Japanese bankruptcy law, but this theory is by far the most credible I have seen to explain the systematic Bitcoin crashes we have seen this year. Far more credible than the Korea FUD and especially the China FUD.
This trustee still holds circa 160k of Bitcoins but some argue that enough has already been converted to Fiat to cover the creditor's losses and therefore no more of this stack will be systemically dumped onto the open market.
If true, this could be the start of the next bull market.
What are your thoughts on Steem's future? How has the depreciation of the Steem price affected you?
The crypto game is not for the faint of heart. The first alt coin I bought was Cardano.... At 66 cents... I'm still holding it😭
There's a lot of risk but a whole lot of reward to be had as well. However, every time the market dips, it seems to bounce back... Eventually 💱
On the bright side, you got more SP. The pendulum will swing back your way, just be patient.
Timing the market is tough and dangerous. I’ve done it and regretted many times. A steady, dollar cost averaging your buys is the best way in.
Yep as long as the underlying asset is strong and will recover, I don't think we have to worry about that for Steem!
I think you'll be fine...but I've been there, done that...(silver)..owned it a 8.00 and saw almost 50.00 and did not sell..(now 16.50) simetimes I'm too "long term...lol...And I did not pay attention to Crawford..who would have had nme out at about 40.00..
That's the thing with investing, if the underlying goes down, you lose money. If it goes up, you wish you'd invested more money!
such situations can sometimes be frustrating. But you're actually investing in the future with Steem. So I think it will be in a good position in the future.
For future viewers: price of bitcoin at the moment of posting is 9173.00USD
I believe in Steemit and have also invested a bit here. But we have to live the fact that the price will fluctuate like all the cryptos does.
The best way to handle this is remind yourself on all the great stuff that is happening on this blockchain and create a investment strategy to follow.
My inspiration comes from a guy here on Steemit called @exyle, check his vlogs out