based grapic of poloniex price of steem continued to decline from the first to appear until 26 August, I think these prices continue to decline due to the selling price more than the purchase price. resulting in an unstable market prices. but I believe this is only temporary because steemit can still grow bigger.
What are the underlying reasons of the decline? Just major correction? or is there more? Anyone knows?
Way more supply than demand. "The whales" keep dumping it onto the market (ie, selling it, cashing out) faster than people are buying it so the price goes down. People complain about that, but not me I don't blame them at all. The thing is, Steemit is still way under 100,000 users. Add a few million more or so and that won't be such a factor. If you are reading this now, you are metaphorically in the position of hearing about AND being able to buy into both Bitcoin and Facebook before anybody ever heard about them - while they were still "in Beta"... I'm not a financial advisor and do your own research, but anyone that has just $5-$100 to spare would do well to "Buy this lottery ticket" if you get my drift.
I think Steem is still finding its level. Posts earning thousands is just not sustainable IMHO. Either the value of Steem goes down or the algorithm is tweaked to give a fairer distribution. It's still early days, so a lot could change. Stemmit is still relatively small. It could be very different when it gets to a million users
100% agree. We're in Beta, everything will be tweaked eventually. The founders/whales doing the dumping will (likely) stretch it just to the "no longer sustainable" point, then change the structure in the exact way all of us little guys are clamoring for. They are brilliant, know what they're doing, and I forget which one was with Bitcoin in it's early days.
They are obviously clever people, but this is very tricky technology to get right. Bitcoin has had to be tweaked along the way. I find the technology interesting, so I want to see where it goes. If I make some money then that's a bonus
Agreed. Then you'll maybe love my article https://steemit.com/steemit/@ibringawareness/would-you-be-on-steemit-without-the-financial-incentive-for-the-record
I love the platform, can't believe it's all free, and will hopefully be using it 10 years from now even if the payout structure goes completely bust.
I'll have a read. We really cannot know how long any internet service will last, but I assume that the Steemit blockchain is a permanent record that anyone could make available. When Tsu ran out of money their site went dark. I can export my posts, but I'd need to process the data if I want to put it back on the web. I may look at doing that as a little project.
I agree with you that Steemit will only grow bigger.... and "Buy low, Sell high" is the mantra older than anyone here!
I just initiated a $25 purchase from my bank account to Coinbase to purchase Bitcoin, to then trade for Steem. I don't care if Steem is a penny by the time the transfer clears, I'm buying. While of course I could lose it all I think most here believe that Steemit will grow to millions of users within the next couple of years, and even a small purchase now could be multiplied hundreds or thousands of times. Nobody knows, but here's a good link to save about a $27 Bitcoin purchase a guy forgot about for four years... https://www.theguardian.com/technology/2015/dec/09/bitcoin-forgotten-currency-norway-oslo-home
wait for it...
yeah lets wait
This made me lol
Where do you see steemit in 6 months? What's your steemit strategy. I'm curious.