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RE: Don't waste you money on RESTEEM BOTS!!!

in #steem7 years ago

Why will Steem increase in value? The value of Steem is entirely independent of the number of users on steemit. People buying Steem is the only thing that will make the price increase. Therefore for the price to go up, there needs to be an incentive to buy and hold Steem. And if you remove that incentive, people will sell not buy!

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Are you familiar with Metcalfe's law? It applies in this scenario.

Iam well aware of Metcalf’s law, however in an open system such as Steem where Steemit is not the only function operating on the Steem blockchain, an increase in users alone will not drive the price higher.
In fact, if some tip named youtubers joined Steemit, they will be withdrawing their earnings putting downward pressure on price!

Withdrawing doesn't drop price. They could sell it, but for every seller you need a buyer. So yes please, let them sell! All that does is to increase the trading volume of Steem - once again increasing price.

More sellers than buyers drops the price! Simples.

I think you're grossly underestimating the effects of increased liquidity and awareness.