3 reasons that hold me back to invest in STEEM

in steem •  5 years ago  (edited)

The STEEM community is the best and most loyal community in the crypto space in my view but still I have issues investing in STEEM. Why is that, misconceptions or facts? You tell me!

Photo by Linda Eller-Shein from Pexels

1. Steemit.Inc

  • Steemit.Inc develops, upgrades and maintains the STEEM blockchain.
  • Steemit.Inc directs and prioritizes work for the STEEM blockchain.
  • Steemit.Inc owns and maintains the largest used STEEM community frontend, Steemit.com.
  • Steemit. Inc is the biggest holder of STEEM tokens, by far.

You might noticed that all of the critical components like development, direction, responsibility and funding are with one organization. I find that very risky and we actually saw a negative impact earlier this year when Steemit.Inc was in the press.

My thoughts on Steemit.Inc:

  1. Steemit.Inc team should focus on blockchain development only and leave the front-end development to others who are better at it.
  2. If Steemit.Inc management would have listen to their users 2 years ago or even to their own developers, we probably would have sorted the sign-up process much earlier allowing users to join immediately and not wait for days/ weeks. We probably would have communities on Steemit.com, the most requested feature by the community.

2. Witnesses

  • Witnesses run nodes in order to produce blocks .... that's pretty much it. (with a few exceptions!)

My thoughts on Witnesses:

If you compare the #EOS eco system with #Steem, well there is no fair comparison to be blunt. #EOS witnesses build in 1 year things like wallets, games, applications, block explorers, decentralized voting platform, ... more than anything the STEEM witnesses produced in 3 years!

From the 21 witnesses I honestly know about a few who do more than "just" running a node that produces blocks. Some good witnesses I can think of are:


3. Price and MarketCap

  • Probably the most important reason that hold me back to re-invest in STEEM is the price development. We are currently at 0.17 USD. That is the same price I bought STEEM 2,5 years ago and in my wildest dreams I couldn't have imagined that we go back here after STEEM was 7 USD!
  • Another thing is the trading volume of STEEM. If you go to coinmarketcap and filter by trading volume you will find STEEM to be in the top 10 of lowest volume!

My thoughts on Price:

The price development of STEEM is probably the most honest and unbiased reflection of what people think of STEEM as an investment.

  • The reason for the price development is that STEEM is pouring out to exchanges and no big investors coming in. I asked in a previous post why the SP lock down period is still 13 weeks? This is clearly not working and attracting new investors to buy and hold STEEM.

Ok that's it. This post was not supposed to be a rant but shows my view of things.
If you think I am wrong, than please let me know what I missed.

All the best.

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Well, I think 10 weeks is better than 13 weeks.10% power down every week is looking good.

Posted using Partiko Android

I would like to see the power down period to be even less (e.g. 4 weeks) but 10 weeks is already an improvement.

Posted using Partiko iOS

well if they would leave it to open hands the one with most power i have strong feeling that they would ruin it for sure

The Market looks very bad lately, but somehow I have a feeling that everything will be better in the next months. Just living with hope. Dont really understand if it is the right time to invest or not, as everything became unpredictable :(

I believe the price level is good to invest but I am hesitant to lock SteemPower for 13 weeks. That is holding me back to be honest.

I was seeing as a very long time from the beginning, but what can we do against the system :D

Witnesses are here to produce blocks and keep security and reliability of the platform. And yes, that's it. They can wear their developer hat on and contribute with code, or any other hat to do other stuff, but that's not the role of a witness.
(It was different before HF16, after which huge reduction in witness rewards was made).
There's SteemDAO now that can be used for funding other projects by chain itself.
Low volume these days isn't a surprise, we just had a HardFork (actually two), exchanges are in the process of resuming their wallet operations.

That by the way doesn't look bad at all
https://www.stateofthedapps.com/rankings

Thank you for adding perspective from the witness side. I agree that if the rewards are just enough to run the nodes it is getting difficult to do more than what is expected.

On the volume side I disagree. STEEM dropped long before the recent Hardfork. I still believe that there aren’t enough people interested to buy and hold, probably because not many people want to have their tokens locked for 13 weeks.

Posted using Partiko iOS

Before HF21 there was really doubtful reason to Power Up, given that one could milk author rewards (that are supposed to be in hands of SP holders) without having any of funds locked in, just by using paid voting services.
By the way, running nodes when it comes to hardware doesn't cost that much. It's experienced, skilled, trustworthy human beings that are of value.
Actually I was OK with 2 year vesting and no delegations possible :-)