RE: Best Cryptocurrency to Invest in? Analyzing Steem from an Investment Point of View and Sharing The Multiple Profitable Opportunities Presented by Steem Blockchain
Well... aren't they maybe just that greedy that they're hoping for it to go higher (people were hodling, even buying more, BTC at near $20K)? They clearly are greedy... exploiting the system to the max with the max posts/self-upvotes per day, #99 upvotes on friends' posts and a variety of other exploits to extract SBD/STEEM... and there's more and more people doing it. For now, while I'm sure it does have an effect on pushing the price down, it's not catastrophic... but what happens when we have 50 large whales doing the same?
Again, I'm not judging the "greed"... Technically it's 100% within the rules of the game. So if I weren't worried it's harming the system it would almost be admirable.
I'm just questioning my putting all this effort (and investing fiat into bots and campaigns/systems etc.) on a very vulnerable platform.
i.e. Where is this "if there is sufficient value for new investors" coming from? Would serious (new) investors only see this as nothing but a cash cow for a few and they are too late to join the party, and therefore step away.
I'm no pro in traditional markets, let alone crypto markets... so I'm legitimately curious about how all this might work, and where the value lies for potential investors. Maybe I'm looking for a reason to convince/reassure myself :-)
It should be assumed that all of the ‘rewards’ are going to be cashed out - whether it is from “whales” rewarding themselves, or minnows collecting their rewards. From an investment/price perspective, the main item of concern is that the demand is keeping up with the supply from the newly created tokens (inflation). If you compute the amount of daily rewards that are generated, and compare this with the daily volume of the tokens traded - you will see whether it should be of concern.
There are users abusing the rewards pool. Sure. That has been happening since the very beginning in various forms and will probably always continue. If you can’t see the value in the platform despite that issue, then I am not going to try and convince you..
Oh no... the value is definitely there... and very evident. I'm just worried that it might be short-lived. i.e. It's going to take me a very long time to get anywhere near the point I'm able to start actually cashing out, and I'm just concerned that by the time that happens the house of cards has collapsed.
NB: I'm not saying Steemit IS a house of cards, literally trying to read up, and ask more veteran users, why it isn't one.
P.S. The rewards cashed vs volume traded is a great example, and I'll go investigate that a bit more.
Anyway... Thanks for taking the time to respond with detailed/informative answers... You've given me some great new homework to go do.