Why you SHOULD NOT INVEST in STEEM

in steem •  8 years ago 

Why would anyone buy STEEM? You don't need more than your 10 starting STEEM to post, comment or read stuff on steemit.

The only reason to own STEEM that I can see is to get even more STEEM by posting and curating content. If the price of STEEM remained steady or increased, that would be good enough.

However, there is a 100% yearly inflation. Assuming the market cap remains constant, that means each STEEM will lose half of its value by next year. That is a tremendous downward pressure: why would anybody invest into something that loses half of its value every year? Unless the market cap increases, but that brings us back to the first point: why would anybody buy STEEM with USD or any other fiat?

There is also another risk: even if you buy STEEM and power them up, you might end up losing more money to inflation than you will make from contributing on steemit, if you are a less popular than average contributor.

I really cannot figure out the economic model of STEEM.
If nobody has a good reason to buy STEEM, then the currently rising price is a bubble resulting from pure speculation. What is going to happen 2 years from now, when huge volumes of STEEM have been powered down and nobody is there to buy it?

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

I guess we shall wait and see :))

So much misinformation here:

However, there is a 100% yearly inflation. Assuming the market cap remains constant, that means each STEEM will lose half of its value by next year.

No, 90% of that inflation goes back to Steem Power holders

There is also another risk: even if you buy STEEM and power them up, you might end up losing more money to inflation than you will make from contributing on steemit

Same answer as above.

My suggestions: Actually read the whitepaper! It covers all this stuff!

most be a good reason to be powering down???????

What? Do you mean? Because onubense speaks out what he thinks? And how he interpretate this? This is just a good post, it does not mean that it is true, but it lets us shure think.

90% back to Steem Power holders? Great.
I invested in Steem Power; am I correct in saying that is the way to invest in this if you intend to be a long term holder looking for growth in the overall market cap?
Thanks!

  ·  8 years ago (edited)

STEEM is not meant to be kept, and as you stated it will loose it's value ... Unless more and more people are drawn here ... we don't know yet.
That's why you convert STEEM to STEEM POWER, and then you will get compensated for the devaluation of STEEM
If you buy STEEM POWER, you are not really speculating, you are investing in something you believe in.
Steemit is a new paradigm on the internet, a new experiment, a redistribution of wealth. How much do you think facebook and twitter make yearly ?
Don't you think this kind of money can be redistributed ?

Nobody knows what will happen in two years from now, but the adventure so far is absolutely great !

Agree, but fb and twitter have lot of advertisements

I'm a new minnow here but I mine ETH and would like to invest some into this platform. Do you believe steem power is the better option? (I'm not trying so much to get rich as I would like to have the most enjoyable experience here and promote articles that I bring over from my website/s). I for one am VERY interested in seeing where this platform goes within the next few years.

Steemit is currently growing at the same speed as Twitter did for the first 2 years. Almost 1 million users.

Glad you stuck around for 2 years. Good to see some people have some loyalty.

You can invest just as much as you fell comfortable loosing. One might say to not keep all your eggs in one basket.

Pretty interesting thread, I fully understand what you're talking about. It's surprising how much uneducated investors the crypto space has. You still see people invest in this shady and scammy coins. We really need more insights in the market and previous investment results. Besides coinmarketcap.com there is: https://www.coincheckup.com This site gives you a complete in depth investment analysis on every crypto in the market.

I hate the fact that you can not resteem older articles.

  ·  7 years ago Reveal Comment