There Is A Floor To The Price Of STEEM

Things are getting very interesting with the price of STEEM. Like much of the crypto market, it is falling. STEEM, however, has the ability to drop like a rock.

For this reason, we see a lot of fear. Will STEEM go to zero? Will it become worthless?

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To show how there is a floor in place, I will start with the numerical absurdity and work from there.

I can guarantee you there is a floor above zero because I, myself, would provide it. If I could get 100M STEEM for $1,000 I would do that. There is a floor above zero.

Of course, it is effectively zero because that results in a decimal point and a 1 with a lot of zeroes in between.

Let us at it another way and I will use 4 others in addition to myself who I know either are buying STEEM or are intent on doing so if the price drops.

If I am willing to buy 100M STEEM for $1,000, do you think @edicted would pony up $2,000 for that same amount? How about @stackin, would he toss $5K? Let us not forget @exyle, who is a regular buyer; would he pay $10K for 100M STEEM? And finally, @theycallmedan has a ton of STEEM, but could he pass on 100M STEEM for $100K?

I would venture to say if any of these people were liquid for that amount, they would jump at the chance in a heartbeat. Of course, even the last rate, is $.001 per STEEM.

To be honest, that floor is not much more exciting than the one I present with my $1,000. It is still a crappy price.

Now, let us be a bit more realistic. There is no need to consider 100M STEEM since the entire liquid market is about 120M STEEM. How about an amount that is 1/10th that. Having 10% of the liquid STEEM mopped up and put into stronger hands (non-sellers) would make a difference.

So now, what if STEEM was a penny?

This would provide 100 STEEM for every dollar. Think about this for a moment, one could be an instant Dolphin for $50.00. If one wanted to be a Whale, $5,000 gets him or her there.

Once again, do you think that @edicted would take $2,000 to get 200K worth of STEEM? Would @stackin pull out $5K to become an instant Whale? We know @exyle is still adding because he likes having more STEEM and all he can do with it, would 1M for 10K interest him? And finally, @theycallmedan could reel in 10M STEEM for his $100K.

I can promise you, to become instant Whale, I would be liquid for $5,000 myself.

After following these people for a while, I feel confident in saying that if they are liquid for those amounts, they would not hesitate jumping at it. If we add all that up, that is 12M STEEM that was sucked up by 5 people.

That makes the 500K or whatever Steemit Inc is selling look like nothing. It certainly buys a lot of time when 10% of the liquid STEEM is removed from the market and powered up.

So we can safely say, that 1 cent is a floor since massive buying from just 5 people would take place.

Here is a comment that Dan left on a post earlier this week. There is a price where he is a massive buyer.

Of course, Steem is a lot more than just 5 people who are committed and dedicated to its success. There are also a lot more than just these individuals who would buy STEEM.

There is also the fact we will not go from 18 cents to a penny instantly without a flash crash. Prices do not work that way. They keep moving in stages, up and down, in some kind of trend. Of late, this is obviously in a downward direction.

We have somewhere around 15K-20K different individuals on Steem each day. Are there 500 of them who will buy STEEM at a certain price? My conclusion is yes there are.

At what price is the great unknown. However, as the price drops lower, the floor gets closer. At some point, those 400-500 people are going to jump in and start taking huge blocks of STEEM off the board.

If we look at 10 cent STEEM, we realize that $500 can turn one into a Dolphin. For the aforementioned $50, one can become a Minnow. Obviously, this is not as mouth-watering as the amount of STEEM receive when priced at a penny, but it is still a nice boost to any account.

Are there 500 people are STEEM who would add thousands of SP to their accounts if the price hits 10 cents?

Perhaps it will take the last low from March of 2017, when STEEM hit 7 cents? Or maybe it is 5 cents?

Whatever the level is, there is a point where the dedicated members of STEEM will step in and buy massive amounts of STEEM simply because the opportunity is too good to pass up.

Remember, the development of applications on STEEM and what is being rolled out is already taking place. Lower STEEM pricing might be slowing the process but it is not stopping it. Just think of the Witnesses, most of who are developers and are working on projects themselves, and the buying they would do if the price is single digits.

To lay it out at 5 cents, 12M STEEM at that price is $600K. Are there 500 people on STEEM who would put up an average of $1,200, netting them 24K SP each, in this ecosystem? Would you like to have your account grow by 24K SP?

I think there are hundreds of people who would jump at the chance. The question is at what price we drop to before that happens?

5 cents? 10 cents? 15 cents? Somewhere along the way, we will see massive buying from those who are committed long term to Steem.

It simply will be too tempting to pass up.

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