Weeks ago, I published my post on Steemit on how to increase Steem’s value and make it skyrocket. Today, Steem is trading at $0.90 and I read an article on CoinTelegraph about the decline. “Steemit and Ethereum Classic Fad Can Be Over As Newcomers Enter Scene“. Now, I think it is time to start thinking of Steemit’s future.
As I said, Steem is trading at ~$0.9 on all exchanges and has lost over 3/4 its value. “Whales”, people with the most Steempower, are too powerful. Steempay has been released and new Steem is continuing to enter the Steemit economy. Lastly, the Whales are powering down which does not quite help with the value whatsoever.
Steem’s peak price was over $4 but is now at $0.9, why? The more you sell, the more it brings down the value. These are the laws of trade. In order to maintain or increase the value, you must increase the number of buy orders. I was expecting Steem to hover around a position of $2 and then, increase in value again but I was dead wrong. The price continued to drop and I saw my Steemit account value drop as well.
The decision point (Steemit)
Right now, it is both the decision point for Steemit and its users. But right now, let’s just focus on Steemit. Steemit has 2 choices, redesign Steemit’s whole voting system to ensure Whales do not have the most voting weight so people can earn more, which will increase interest again. Or, they can continue what they are doing and gradually lose its users to DECENT and Synereo, its competitors.
The decision point (users)
Now, this is the party that will decide Steemit’s fate, the users. Right now, Steem is on a negative trend is showing no signs of regaining its value. This puts users at a decision point to either hold, sell or buy. Certainly, all 3 are good options but let’s think about this. Take the gamble and see what happens in the long-term? Sell it all while the price is still not at an all-time low and still pull out with a profit? Or buy more and hope for the best that it will increase?
Why is the value dropping?
Personally, I have no idea but logically, it is the demand. Ever since Steem became tradeable on some of the most popular exchanges, value soared, then dropped. Reason? Too many orders to sell the coin. When the coin hit $4, there were a lot of buy orders as well to balance out the sell orders because everyone was expecting it to rise. Well, it is almost what we call a “bubble”. A bubble is when a stock or something goes up sky-high and suddenly drops, continuously. Since Steem lacks high demand from merchants, users, etc, the demand cannot be increased. Thus, the value drops.
Could this be the end?
Without proper change and stopping all the voting power to be in favor of the whales, Steemit will have quite a difficult time competing, I am sorry but this is my thoughts. Either get your friends on Steemit, or start getting people to accept Steem to raise demand.
I fully understand Steemit is still in Beta and developers are hard at work but even without a change, demand needs to be increased to keep it awesome!
Why say it’s the beginning?
Like Steem, Bitcoin experienced a lot of downs and it has developed a lot to become something that is accepted on Shopify stores! This negative trend might mean that there either might be a breakout, or it might come back even stronger, like Bitcoin or the US economy after the Great Depression (which is still debatable).
Full Steem ahead!