This scene from the Golden Child starring Eddie Murphy comes to mind when I have a look at the markets and my portfolio at the moment. It is hard not to get a little bit worried at exactly how far it will decline but one thing is certain, there is a ground. Zero.
What I have found interesting so far is my lack of emotional response to the situation. Perhaps it is because I have seen worse or it could be that I believe that it will go up again in time. I wasn't expecting the dip to dip quite so far and for quite so long but there is a lot of engineered FUD going around now which is affecting the markets. The thing is though that as of yet, not much has really changed and it is all sentiment driven.
What I do think though is that as regulation and legislation get introduced, it will be a good thing for Steem as it already is up and running with deep proof of concept and as other coins get dropped off due to their unproven nature, invesors will arrive for Steem. These are just my thoughts.
What do you think?
Taraz
I hope you're right about regulation driving people to STEEM. It makes sense that simply slowing down the pace of ICOs will strengthen markets for existing coins, particularly any that are up and running delivering a solution the market places a value on.
My big concern for STEEM is not how low the overall market can go, but how low the problems with Poloniex wallets can drive down the price of this one coin artificially. It is dropping at a faster rate than the overall market, and there's just no fundamentals reason for that.
If you look at the markets tab on coinmarketcap or other such sites, you'll see that Poloniex's price is always about .10-.20 lower than the other exchanges, and then a few hours later the other exchanges wind up where Poloniex had been. Seems pretty clear to me that that is the primary price influence for STEEM right now. As long as Poloniex folks can't withdraw their STEEM, they just keep trying to make sure someone else is left holding the bag, while they get out of it and buy coins they can actually withdraw. So what is the natural bottom to THAT situation?
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Yes, poloniex is one problem but most volume actually goes through upbit now on the korean markets. Quite crazy really.
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Well, as everything in life, there is always a proper saying for each situation. And after watching that Eddie Murphy scene, here's the saying that comes to my mind:
"When I think I've already hit bottom, there's never a lack of SunOfABeaches who lends me a shovel"
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I tend to carry my own ;)
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I hope you're right, @taraz, about all of the above. Truth be told, past initial concern (okay, mild panic) I'm not terribly alarmed & think situation will correct itself, soon...
When I read your post title, this koan-of-a-quote came to mind:
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Most people only know about Bitcoin. Until the mainstream investor, who is probably someone who was introduced to Bitcoin over the last year and had no idea that any other coins exist besides what they see on coinbase... Until that person understands that Blockchain isn't all about cryptocurrency, and that cryptocurrency isn't all about replacing Fiat currency, we will see these dips on "negative news" related strictly to transactional cryptocurrency.
Just ride the wave and keep up to date on regulations that affect you and your investments. If something changes, adjust your strategy accordingly. Don't blindly HODL, but don't always buy into the mainstream FUD. Make decisions based on your own risk tolerance and only invest what you are able to lose.
Make sure that whatever you're doing becomes a life lesson that you can afford to live through. Maybe it will be a great life lesson. Maybe it will be a tough one. Just make sure you're not putting yourself in a potentially bad situation. 👍☺️
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