Does a Low STEEM Price = Better Platform?
Many people have asked me lately what I think of the Price of SBD and STEEM going down and I have been asked that many times I though it a perfect question to detail in a post.
The entire crypto market has been seeing difficult times and STEEM and SBD are not escaping. I’m not too worried about this because my goals are longer term so the current price means nothing to me.
For Steemit I think the lower prices are a good thing. After going through a period of high prices and for some, very high post payout values, this has attracted many ‘get rich quick’ type people, more plagrisim, more spam. These lower prices mean lower vote value and lower payouts. If Steemit becomes less attractive my hope is that many of these will leave for more lucrative pastures.
For a long time, the price of SBD has been higher than USD$1 and many people, including me, were enjoying the ability to use this as liquid funds for other things than SP. There are many of us here on Steemit that have enjoyed this and also have a long-term vision. But the high SBD price also encouraged a growth in short term thinking and the use of steemit as a cash cow. I hope the lower price of SBD will either help change the mindset of these people or weed them out.
If you are concerned about the price of STEEM and SBD then the best thing you can do is Hodl. The more that people hold, the less the supply. If supply can not meet demand, then the price will go up. Well that’s the theory anyway.
Taking the lower prices as a good thing for Steemit and those with a long-term vision, now while prices are low is the best time to be active on steemit. Its shows commitment, loyalty and dedication. And if we weed out some of the crap, then there are more vests in the rewards pool for those working hard.
I believe a low price of STEEM will create a better platform for content discovery. Would you agree or disagree? Please do comment below and let me know your thoughts on this.
Then there is the technical side of SBD and its role in Steemit. Although I have read a lot about it, it still confuses me a little. So, to try keep it simple, the market has dictated the price of SBD but the blochchain code includes mechanisms that helps peg SBD to US$1. It also has mechanisms to reduce the debt ratio because too much SBD in circulation is not good for the price of STEEM as it makes STEEM less attractive for investors. Taking this into consideration, my feeling is the best thing to do with SBD at the moment is hold on it to for use it to buy STEEM and Power up.
I am a keen believer that Steemit needs more long-term thinkers. We are still in beta and the STEEM blockchain needs time to flourish and the ecosystem grow.
I said it before and I will say it again, the accounts that will keep my support on Steemit are the accounts that show long term promise, not those that want to use it as a cash cow. And I am not the only one that feels this way. I am aware of many others with much higher SP than me that stop supporting accounts that don’t have long term vision and I know others that wont even begin to support accounts till long term vision has been proven.
STEEM ON
xx
Paula
A shameless plug now @abh12345 and myself run the witness @steemcommunity – please do consider us for a vote
I'm not sure I agree that lower steem and SBD prices will improve content quality because I'm not sure I agree that people spam, scam, plagarize because they are seeking high SBD/Steem, but in fact because they are looking to acquire a crypto, regardless of its price.
If Steem was like 0.01 USD perhaps that would mean lame spam/scammers would disappear because then the reward would be perhaps too minimal, but unless we get down that low, I think spam/scammers will stay, unfortunately.
you may be right. but there is always hope
all whale complainers could buy Steem now, to at least become a dolphin.
you are so right. I am not a whale complainer, but I'm just waiting to have some funds to buy some :-)
If a few thousand active people bought 100 steem and powered up, it wpuld make a difference. Unfortunately, very few want to buy-in, just take out.
i never powered down the last 1,5years
Between the 1st and 11th I plan on picking up a min of 100 steem to power up. I am hoping the price does not go up. I plan on being active until at least 2135 , Apr or Nov. Not to sure on the mont, it's a long way out
Who is this @abh12345 guy. Is he part of the Indonesia League, Which is going great BTW
@felix.herrmann, I agree, it's time to buy steem, to increase Steem Power :)
It's pretty difficult to keep positive mind set when all the markets are falling down, but reading posts like yours definitely encourage to hodl. We truly believe in potential of steem and it's ecosystem, that's why we are writing our blog only on this platform and nowhere else. Hopefully this downtrend will shake off most off spammers and get rich quick thinkers. Good luck to you in everything and steem on!
I think this drops in the markets are fine, everybody here is a long term investor, so this dips can't scares us!
We can see that the "commercial war" is influenciating global markets, and crypto is no exception, we are going down in the same way, the tendency is to go down, so we follow, which in my opinion shows that we are getting bigger in the global scale, because we have seen before some drops in stock markets that didn't influentiated us, for me that meant that we were too small and not enough people were reacting to what was going on in the world.
Concluding, I would say Yes, to your question, even if the FUD slows us down for a while.
This is a well writen post,i agree with almost everything.
I celebrated one year on Steemit just 5 days ago and have witnessed the prices when they are high and down!
As you stated,the high prices always bring scammers who want to make quick money...the get rich mentality. I have seen this in my 1 year here
It is fascinating to note that right now we get more SP from posts because of low activity.It is only the long term thinkers who can stick tothe lows of crypto.
I am happy because i am a longterm thinker....I am also sure Steemit will stick around and deliver results to us the long term thinkers.
This hard times(low prices) is the time to separate serious folks from the unserious(get rich quick!) guys.
I will stick for the longterm .
A long-term thinker here. I have been investing my own money and powering up ever since I joined Steemit more than a year ago, and I will continue to hodl for as long as necessary. And although I would have liked to see the price of Steem go up, you have a good point that the lower current prices somewhat cleanse the platform.
I didn't think too much about people that have invested cash as well as time. For those that bought while the price was high, this must be a difficult time.
Well, the high SBD value did indeed make it a bit easier, I paid most of my Smartnode (smartcash) with it. But apart from that I just prefer to keep the SP and power up the steem we are getting now.
This will allow for more growth in my account.
This is also a reason we are running @swisswitness ,
we believe in this blockchain and are investing by blogging and by running the witness (servers do cost money)
I personally like having steem at a lower price, it allows for better accumulation
although the high SBD prices were enjoyable, personally I like the lower prices to give steemit that room to grow
high prices attract more people but then when they are here they realize that it is actually very hard to earn
I have to agree that steem needs to grow a bit more, lets hope it grows sensibly
any chance that you would replace @justinadams who seems to be a dead witness with @swisswitness ( a group of which I am a part?)
Great points. However, those that came here for the quick bucks when price was high, will come back again when price rises. I also think that next uptrend will be caused by more adoption and therefore new users will come at an exponential rate, meaning there will also be more "get rich quick, post spam" kind of people.
I don't know if steem price causes every bad element to leave as many have figured out and adopted ways to use bots to get paid for spam. And some of them will be happy with whatever they earn. Other point that i can think of, low price means more volume is needed to sustain similar level of earnings, therefore much more spam.
with no offence meant, I do hope that you are wrong! we can only wait and see.
None taken, i was only offering a different perspective. I would prefer your viewpoint becoming a reality.
We're losing the people who want dollars, and keeping the people who want SP.
Fine by me :)
more than fine by me too
I think it is a good thing for those looking long. It is times like these that have been the most beneficial for smaller accounts looking to grow but most only look at price.
have to think of a way to change the mindset of some people then :-)