Gypsy Thoughts – Why I love Steem volatility and stopped worrying about

Hi Friends,

If you look at the Steem quotations in the last weeks, so it went properly up and down. After a prolonged downtrend, the trend reversed on Thursday: within four days, the price rose by a considerable 100% and is currently roughly back at the initial value of a month ago. All together around 100 percent up and down within 30 days, that’s a rally :)

Why I do not worry about this volatility of Steem ?

On the one hand Steem ( and Steemit ) is still an experiment, which is easy to forget after a lot of price gains within the last month. And not just an economic experiment, but also a social one. Experiments must also be able to deliver unpredictable results, otherwise they would be dull.
In the case of Steem, volatility is now one of the most important indications that it will be still exciting, as well as in recent weeks. That something happens that offers space for unforeseen things. If you are interested in the findings of the Steem and Steemit experiment, volatility is therefore a very important indicator.

Volatility gains momentum

Volatility also frightens. It hinders institutionalized large-scale investors and other speculators, who are less concerned about the project than primarily about profits, thereby gaining access.
This is important inasmuch as Steem is still a comparatively small phenomenon with a market capitalization of little more than US $ 370,000,000 and a large number of investors who are purely fixed on income would certainly distort and slow down the experiment. The volatility here prevents the entry of too many (large) investors and opens up the chance that Steem’s user base will be further widened and the price will continue to rise. Both would give the project further freedom to stabilize itself, allow for dynamic development, and limit the impact of potentially large players.

Volatility is adjusting

Moreover, the volatility cleans the ecosystem of precisely those speculators who are concerned mainly about the money. If the price decreases massively, this can trigger a chain reaction, in the course of which mainly those who sell their Steems, who least know the topic or are interested in the idea and the concept behind Steem. This adjustment is positive in that no one should invest in Steem anyway, who has not understood it (or not at least tried). The volatility thus provides for a self-correction of the ecosystem of too many speculators, excessive expectations and should ultimately also remind you that money is not the only factor on which the success of Steem and Steemit can be measured.

I am quite confident about the future of Steem and wonder what the results of this project are - due to unexpected findings, despite enormous volatility in the last month.

Happy Steeming !

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