The price of STEEM has been declining over the past week
Oh no! That's Terrible!
Or is it?
When the price of STEEM falls, author rewards earn more SP.
With all the talk lately of whales, and dolphins, and minnows, one thing is obvious. Many of us are HUNGRY to close the gap between the small fish and the whales.
Now is our chance!
A short term decline in the price of Steem might be the best thing that can happen for the long term health of the community we've come to love. It will provide us with an opportunity to level the playing field a bit, and give some of the less established users a chance to catch up. It may be just what we need to work towards a fairer, more enjoyable experience for everybody.
STEEM will be volatile. It will go up, and it will go down... The ebbs and flows are not to be feared, though! We benefit from both in different ways.
When the price is up, we enjoy larger rewards and extra Steem Dollars. When the price goes down, it's our chance to Power Up with more SP from rewards. Cheap STEEM is a good chance to buy Steem to power up with, too.
It's a win/win, and part of the beauty of Steem's unique economics.
Full disclosure: I am a jellyfish.
I'm glad we have a jellyfish in our community. Are you pre-op or post-op? Or just born that way?
Thanks for pointing out a great opportunity
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I don't even know how to respond. :P
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A dropping steemprice will also limit the influx of quick buck artists who aren't interested in the platform, but just spam in order to (hopefully) make money. This in turn will make the platform more enjoyable, and thus, valuable :)
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Steemit is long play project!
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It is the spawning period for dolphins, minnows, small fish and plankton
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I have same conclusion, i don't care if price go up or down, i win in both situation.
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Indeed, it may make some users butthurt (me for example) but it would greatly help being able to hold the market and the dumps of bloggers, eitherway its a process that develops itself naturally in the steem enviroment.
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Yup. People are panicking. Now's the time to stock up. Trading 101. :)
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Hello my Jellyfish Comrade. Interesting read.
I never realized we get more SP when prices are lower.
This IS actually not bad news for authors like myself.
STEEM is a long term thing for me, I view SP as an investment into the future.
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Thanks for sharing! I really hadn't thought of this way! Have to look to buy some steem now! :D
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now's the perfect time to buy steem, i've been converting a little of all my earnings.
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i still think it will fall further, and i`m totally fine with that, it will equal itself out eventually!
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Excellent article. Many people don't recognize steem as a commodity. When the price is low, but more.
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wow! cool, i was able to add $50 to this post...
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You're awesome!
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I've never had the pleasure to meet you, great post my invertebrate brother!
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what does the jellyfish do on Steemit?
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I mostly float around and hope food bumps into me.
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I like the way you see things and the work too.
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Don't tell me this is good news, I switched all my coins to steem and I'm fucking depressed
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price dump
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Not bad....
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So how is it that rewards from activity in SP are more valuable when the price of steem is lower? How does that work exactly?
Still learning how this all works.
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Also, I've just powered up $100 steem dollars i got from author rewards etc. yesterday...
Based on this down swing in steem value am I getting more or less for my money?
If you can answer this, thanks in advance!
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The Steem you purchased are worth a little less today than they were yesterday. But since you powered up, you don't have to worry about it.
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Well I haven't powered up yet (just realised I said that wrong above) just transferred $100 SD to Steem with the intention of powering up which takes 7 days apparently? So I've basically just bought Steem that is decreasing in value.
Do you know if it gives me the value at the point I initiated the transaction or 7 days down the line when it actually appears as steem?
Thanks for the explanation btw!
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It gives you the average price over that 7 day period.
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It's specifically author rewards, from posting and commenting. Curation rewards (from voting) are not affected.
When you receive a payout, 50% is paid in SBD, and the other 50% in SP. When the price of STEEM goes down, it takes more SP to make up 50% of the payout.
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I thought it's time to convert SD to Steem. When Steem will go up it's a profit. Or I'm wrong?
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There are benefits to both. When STEEM goes up, you do profit. But you can also take advantage of lower prices as well.
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The only problem here is that the lower the price goes the lower the order book depth. When Steem was trading in the $4-5 range, the buy-side of the orderbook on Bittrex was 600-700 btc, today it's only about 184btc!!
So I'm not so sure that a rapidly declining price is such a good thing. It seems to me that a lot of Steemers are cashing out their rewards.
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I think the market is still in the process of figuring out what a fair price will be under normal market conditions... and we haven't really seen anything like "normal" yet... I expect it to stabilize at some point, but it might be a lot lower than some people expect. There will always be selling pressure from people powering down... we just have to find out at what price we see equal interest in buying steem to power up. It's going to be a process.
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Im sad to have to cash out a little steem today from bittrex because of a Dr. Bill. But i have SD converting to STEEM that i am waiting patiently to appear in my wallet again. Seriously Steemit devs, if you fix ONLY ONE THING please add a transaction ledger for the conversion of steem dollars to steem if they are just going to dissapear for the waiting period. It is a white knuckle, nail biting week not knowing if they will ever come back. There is nothing to prove they ever existed... i now know to convert them instantly with the buy/sell drop down, but i didnt before. If my 725 SD don't return as steem in a week im going postal
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Thanks for the analysis, I didn't realize this.
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It's also very nice for those that wish to purchase some to get started with steem, as they'll have to spend a bit less "out-of-pocket"! Great post! :)
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