So, this is my first ever post on Steemit, having just received my invitation to join and it's great to be here.
I have a problem though..... and I've had a quick look for answers but haven't found any yet, so am coming to the community to see if together we can solve this strange problem...
Why are Steem coins FALLING in value while the popularity of Steemit.com is RISING?
It just doesn't make sense. To make this post a bit more personal, I've recorded a short(ish) video to explain:
Please give your suggestions and let's see if together we can find an answer.
Thanks. Paul.
You are asking a good question here. I will try to give you an answer in plain language, so it's easy to understand. (I'm an arm-chair financial hobbyist. I have been stacking silver for 6 or 7 years, and I am new to cryptos but have had 2 of my own businesses in the past. The first one failed - but I took only small losses, the second one held it's own - but I grew tired of it and let it go. I also have many years of experience with Sales, High-Pressure Sales, & Customer Service industries.)
Every successful business model is driven by SALES. Part of this is the "hype" and the emotional energy that is created by its' initial successes. This "hype" or social awareness tends to go in up & down cycles - people are intitally excited about an opportunity or a product, then find out that there is no such thing as a free lunch, they are going to have to work at it to be successful, and then the enthusiasm dies down. It's a very normal and well understood cycle to people who are involved in sales and business.
Crypto-currencies are not immune to this "hype" phenomenon. They will have upswings and downswings. This is why it is important to understand longer-term financial charting of various asset classes, and the various factors involved in its' price or value cycle.
When it comes to Steem, we have limited information because it is a relatively new type of asset. We can loosely relate it to other cryptocurrencies - and there have been cycles in their values as well. Bitcoin has only been around since about 2009. To understand the true value and staying-power of cryptocurrencies, you have to understand what each ones' underlying product, service, or benefit actually is based on. And, you must understand the power of Blockchain technology.
Bitcoin is based on being a medium of currency exchange that cuts out the banks & middle-men, enabling people of all cultures and coutries to exchange money quickly & without banking or international interference. SteemIt is based on a social media platform which is directed by it's participants.
As various SteemIt participants and users come into the platform, leave the platform, invest in it, and take profits from it - the value of the Steem coin will fluctuate. Sometimes it can be very volatile and unsettling to people who are not used to the roller-coaster ride. However, you must look at longer-term indicators.
For example, Bitcoin goes up and down, but the low parts of the cycle are higher and higher each time. It goes up in value by about $200 with each new downward trend. Overall, it has outperformed every other known asset since it's initial creation. Let that sink in for a while... I have absolutely no doubt in my mind that BlockChain technology is going to overtake the worlds' monetary systems within a few years, unless the world banksters decide they need to completely nuke the world, destroy the internet, and ravage humanity in order to maintain their control of the current debt-slavery system.
The Dollar is closely tied-into the Oil energy economy. The most successful cryptocurrencies are going to be the ones which are tied into the coming Graphene/Cryptocurrency revolution. The technological advances and practical applications of Graphene technology will be tied-into cryptocurrencies which have been created to support the Research & Development of new manufacturing processes involved in reducing the costs of bringing new, superior products to the worlds' markets.
Do yourself a favor and take your own time for due diligence. Go and research "Graphene" and "Graphene Coins" or "Graphene Cryptocurrency" on your favorite search engine. Also, learn about "Blockchain" technology. There are about 22 crypto-currencies that are closely related to Graphene research. And, here is the real kicker:
Graphene technology, paired with Blockchain technology, are going to alter the course of human history MORE than the creation of the Internet. And, RIGHT NOW, only a tiny group of individuals on the planet are aware of this trend. Believe me - you want to own cryptocurrency right now, hold onto it for 10 years. With 1 single Bitcoin, and a few hundred dollars in other cryptos like Ethereum, Litecoin, Dash, Doge, Ripple, Monero, etc. Just spread a few hundred dollars across 7 or 8 of those cryptocurrencies, hold them for 10 or 20 years - you will be able to retire as a wealthy man. Listen to me now, believe me later - you will not be disappointed if you hold for a decade or more. It may not even take that long.
I would love to learn more about this. Do you know of any specific articles that would be helpful for a know-nothing such as myself?
Enjoyable post Good to see I'm not the only one that is thinking about this. The Trustworthiness the cryoto space brings with it one thing nobody seemingly cares about. This is quite an interesting website I found: https://www.coincheckup.com. Amazing opportunities came to light when I started using this coins to analyze cryptos.
Demand is lower then supply - check basic economic textbooks.
Basically: Steemit currency was overrated (hyped) after IPO, now goes back to realism.
Check yourself: Most contributions here (like this) are of the quality you see on any Bulletin Board. Why pay for this shit?
Fair answer thanks. Anyone else anything to contribute?
User adoption, posts and active accounts are not rising, so I am not sure where you got the idea it is getting more popular.
SteemIt, the platform is asking for "Quality Content", but the power voters are not supporting, "That". I personally don't feel the Internet is short on Essay like stories the platform supports.
Steem the currency is based on a combo of mining and posting. It did receive some hype.
Both Steem and SteemIt need to prove there is something here worth investing in. I am not saying there isn't. I am just saying, I am participating.. but holding on to my wallet for now. (Thus not purchasing Steem, and that seems to be a trend".
Thanks for your reply. The reason I say that Steemit is getting more popular is from the Alexa rankings - putting now in the top 11,000 most visited websites in the planet - that's a pretty impressive feat in just a few months. Of course it could also be a popularity bubble that will burst especially as there could be a good number of people who are only on Steemit due to the financial incentive.
It will be interesting (from a personal view) just how much people interact and whether the quality content really does filter to the top or whether the scammers and spammers will find a way to take Steemit for their own advantage.
Ultimately, only time will tell , but whilst on that journey, as a speculative investor, it will be interesting to see if I/we can "work out" where it's all going.
Hi Paul. Just want to say thanks for posing this most important question and for getting back to me so quickly on YouTube. I am going to keep researching and will post any answers should I find them. Looking forward to to seeing that graph rise back up again! Followed & upvoted :)