Steem is priced roughly $100 million less than Bitshares, does that make sense?
If you look at coinmarketcap.com today, you can see that steem has fallen all the way down to number 37 on the list.
Roughly $100 million behind Bitshares:
(Source: https://coinmarketcap.com/)
Yikes!
This is interesting because Bitshares was the older brother of Steem, created by the same person.
Steem arguably has a better blockchain and a better development team behind it, plus it has loads of cash (in theory) and large plans for the future which includes a social media site built on top of it as well as a multitude of other apps.
All that doesn't even include SMTs, which are supposed to potentially be one of the main value drivers for the cryptocurrency.
Given all of that, why in the world is steem valued close to $100 million LESS than Bitshares?
Honestly I don't have a good answer for that.
In fact, I don't have any answer at all.
Steem sitting at number 37 on coinmarketcap can make some sense in that there has been no marketing done for the flagship application; steemit.com.
Many of the coins listed ahead of steem have spent money on promotion, advertising, and basically getting their product out there.
Although I take that back, there has been word of mouth marketing and a few meetups where the CEO attended to talk about steem, but beyond that, pretty much nothing.
Which is shame considering the potential of the blockchain and the potential social media app built on top of it.
(Source: https://www.quora.com/How-do-I-make-millions-of-money-with-no-money)
Why has there been no money spent on promoting steem?
Again, I don't really have a good answer to that one other than perhaps the developers are waiting until the blockchain is ready to handle a large influx of users, which would actually make a lot of sense.
Build a blockchain that can scale, get a working social media site, THEN advertise and promote the heck out of it.
Though I am not fully convinced once the blockchain is ready to scale that much money will be spent on advertising, which again is a shame.
Though I have gotten off topic a bit here... Why is Bitshares, a coin that isn't doing any more advertising than steem, has less potential than steem, and has less money backing it worth more than steem is currently?
This goes to show how ridiculous the pricing mechanisms in the crypto space currently are.
None of the prices are really based on anything other than sentiment.
There is some pricing based off of potential, but mostly it is based off of promotion and sentiment.
If you can win the sentiment war, you can have a well priced coin.
That being said, I do think that we are getting closer and closer to each project being more accurately priced, however, I think we are still a long ways off.
For that to happen we probably need coins to diverge from being price in terms of bitcoin.
Right now bitcoin moves everything, with some small surges here and there based off their own merits.
Why should the price of the largest cryptocurrency directly impact other cryptocurrencies that may have nothing to do with bitcoin?
Until that changes we are going to continue to see miss-allocation of prices.
Stay informed my friends.
Follow me: @jrcornel
On BTS one has to pay to transact.
This means one has to consider before spamming the blockchain.
This means a more sustainable blockchain.
Would you pay the market price of 100 STEEM to get what 100 STEEM can give you?
I took this question from freebornangel.
I do feel that the entire digital currency market has more downside to it, due to multitude of ICOs and USDT in particular.
Sovereign monetary inflation supports cryptocurrency prices, but I feel that not to the extent of cryptocurrencies' inflation, which is much higher.
If that is your thesis, than prices should mostly only trend down, correct?
USDT creation/inflation is the main reason for the rises since its inception.
BitFinEx' control over the aggregate digital currencies' market capitalization is only surpassed by central banks' control over the stock and bonds markets.
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Does that make sense? Not even a little.
Steem could literrally revolutionize social media today, if people came and used it. Its not some distant project, with an obscure use-case, its a ready-made, highly scalable, social media platform.
HOW IS THIS THING NOT HUGE?!
Why is it so hard to get friends to signup and use this amazing platform. There is litterally nothing to lose, and everything to gain.
Oh well, to quote the infamous Montgomery Burns, "patience Monty, climb the ladder."
They haven't come yet because they haven't heard about it on TV and seen it plastered all over billboards and magazines as the next big thing, like it should have been. Which is somewhat what I alluded to above.
@jrcornel, I know what you are saying, but when I talk to friends there is something else going on as well.
I tell people who I know very well, "you should sign up, its free, its fun, it pays something back to you for your contributions", and they say, "what's the catch?".
What do you say to that? I tell them all, exactly how it works, most are reluctant, and its not because they haven't heard about it, its some innate distrust of crypto, or of a system that sounds too good to be true maybe.
Exactly, the catch is that 90% of people who don't buy in will earn nothing. That is the catch. It is not free money for anyone who signs up like it sounds on first glance.
The catch is that you have to spend a lot of time building up followers and producing quality content with no guaranteed of monetary reward. If you tell them it's "free money," of course they will think it's a scam.
Bingo, well said. More than 90% will not earn anything unless they buy steem, then they can only earn via self voting. It is far from free money on this place. Most must invest to earn.
I think we are debating volume of success, clearly you can make something on Steemit with not too much effort. Of course a person has to put something in to get something out, but keeping in mind all the hours most people spend on traditional social media, posting photos of life and commenting on one another's posts, if they put that effort into Steemit, facilitating conversation, growing community, I believe deeply they would be rewarded with SOME upvotes, and therefore some income.
To show my point, I upvote people on Steemit with no Steempower, I dont even ask myself how much SP they have, probably same with you both, so clearly we are proving that people can make some money on steemit without buying steem.
But if you are asking me, "do you think you can become rich on Steemit without buying steem?", my answer is firm no, with a only the smallest hint of maybe, cause one in a million might make it work.
But my sales pitch of Steemit is not now and never has been, "join today, get rich for free". My sales pitch is has always been, "join today, do what you love doing on social media already, and if you are sincere, genuine and putting out interesting content you will earn something, which is a LOT more than nothing."
In conclusion, when you say "most must invest to earn", I agree and disagree at the same time. Depends what you mean on "earn", do you mean "make a living?", then yes I agree. Do you mean, "earn $0.10 USD per day?", if so then I strongly disagree. To have a modicum of success on Steemit I really believe this: all you have to do is write posts and comments with earnest effort behind them, and then your sincerity and thoughtfulness will come through and some upvotes will as well.
The question really is, can one earn enough money on steemit, for free, that will change your life? And to that question, you have to first answer, how much money will change your life?
Very true Sir, Please, don't let them know about it..
Tell me it ain’t so STEEM 😩👎😩
I totally agree that sentiment determine the price. However, STEEM has higher inflation to sustain a rewardpool. Therefore, more percentage of STEEM are produced daily compared to other top PoW coins or ICOs (which has a fixed supply). Therefore, STEEM needs the growth of investors, who need to consume these extra supply which is not happening in this bear market and luck of positive sentiment.
While BTS has zero (I am not sure, but it looks like) inflation. Therefore, there is no pressure to consume new supply.
One of the solutions could be to reduce the STEEM's current inflation drastically to 2% from current 8.7% by eliminating rewardpool using STEEM.
Assuming that STEEM distribution has completed reasonably (better than ICOs such as EOS). New STEEM production will only be used for interest on staking (i.e. PoS mining) and witness compensation.
Demand for STEEM will come from bandwidth purchases from the companies behind the SMTs, scarcity and speculation.
STINC, as a owner of Steemit will lunch their own SMT. Perhaps they can airdrop their SMTs on SP holders.
All the experimentation about rewardpool distribution on Steemit and other DApps will bottled out. The controversies around #rewardpoolrape will affect STEEM a little, since SMTs rewards will be the problem of the DApp owner and communities. STEEM will not be involved in conspiracy scheme to abuse the reward pool which is the main negative sentiment about STEEM.
The very DApp developers and community will decide on their own reward pool distribution for their SMT.
STEEM inflation will reduced severely, which will create scarcity, therefore, STEEM's demand will rise. Moreover, STEEM's valuation will also depend of DApps/SMT's success and DApp/SMT's bandwidth requirements.
Some very interesting thoughts here. I take it you are not the only one who has been proposing something like this?
I am not sure who thought it first. I wrote a blog on the idea a month back. However, @liberosist also had similar idea. If you like it, you can write a blog on it, due to your strong follower base, the idea may get more attention.
The sentiment about Steemit or any DApp should be decoupled from STEEM. Moreover, STEEM should be as scarce as possible to ride on strong speculation and HODLing.
Well said, I agree completely. Though is there much support for cutting off the inflation? I mean it drops every year as is and is really only about double what bitcoin is currently.
Well said @jrcornel. Marketing and promotion are key and crucial. The pricing mechanism tied to the rise and fall of BTC are signs of a yet fledgling asset class (cryptocurrency) being perceived as some monolithic use case defined primarily to the value of one ‘coin’ versus another. It’s apparent that the actual functional aspects of the different ‘blockchain’ apps appearing across the universe of blockchain has yet to penetrate the collective financial consciousness of the ‘consuming’ public. Once that happens STEEM-enabled apps should be the driving enablers of STEEM value. It is indeed a marketing issue -
Very well said! Paging steemit.inc!
This is it, its really that simple. We think "logically" that technology is what drives public sentiment, but I think we give people too much credit.
Most people who would buy 10 Steem, 20 Steem the tiny potential investors or would be micro hodlers only see the valuation. Anything else is not as relevant because it does not speak to their emotions.
Funny enough, this is precisely why we as a community as users of Steem actually have control of the price too. Yes, its really that simple, my claim is nothing out of this world.
If the people who are participating of the platform are not willing to hold it when it passes 24000 Satoshis because they believe it will come back down, that doesn't say anything about the technology of Steem (the blockchain) but speaks volumes of the would be "believers".
So the truth is ugly but its not that complicated. Short term mentality is keeping the prices low, if everyone here is fearful of holding the coins because they think tomorrow they will wake up with wallets that induce chronic depression, then they are the builders of their current reality.
I say this, and also say that blind cheerleading is also hurtful because its not rooted on facts, and overpromising and under-delivering (as it happens in the cryptosphere quite often) is the fastest track to changing market sentiment.
People are predictable, and we can plan for them being consistently inconsistent. Wearing the jersey one day, screaming of joy, announcing to the winds undying alliance, knowing full well tomorrow they will be singing a different tune.
So, to whoever my message happens to reach. Want Steem do be better? Want valuation to go up? It starts with us, leaving out negative attitudes behind in search for solutions to the obvious challenges we have, that mind you are cultural and not so much "THE CODE" as people love to say.
In any case... sorry for the rant, it's just one of those days...
Personally I can't blame any whales or normies who powered down or shoved as much as they could into their own pockets as a hedge against the fall in price, the trend is still down even with tether still in operation, imagine the carnage that will happen if tether gets raided.
Yes, there is a lot that people on steemit could do to change the culture here, how people vote and behave, and our perception to the outside world, but in addition to that there are still elements largely out of our control that have been driving the price up to begin with (to the benefit of holders, actually).
Agreed. Though thousands of years has shown us that you can't fix human nature. Rules/protocols need to be adopted where the entire platform can have people working to maximize their profit potential while also not having it cannibalize the entire system because of it. Not an easy task, but one that can be done better than it is currently.
Yeah, a system with potentials to min-max just hurts those who don't want to max, they really do need to flatten those sorts of extraneous loopholes while retaining value for investors.
Very True Sir.
Very Well Analysed Sir.
Because the plebs are suspicious. Lol
With all the fear surrounding tether there seems to have been a large influx of money into the BTS economy, especially bitCNY, because of their misguided assumption that the collateral will hold fast in the case of a widespread collapse in crypto prices.
So to me it seems that while they've seen an influx of Chinese investor money we've seen nothing but reduced "excitement" coming from Upbit (Korean money) ever since they got raided.
Just my 0.02 stu.
That actually makes a lot of sense and explains at least some of the price action I have been seeing regarding the two coins. Thanks for sharing.
Good Analysis Sir.
@jrcornel Perhaps they are waiting for the iron to be hot then they will hit so hard means promotion, i hope so, & what do you think when and how all other crypto will exist, grow without any positive or negative effect of BTC?
The valuation of any price in the crypto space is often irrational!
Quite True.