Is Steemit about to enter the crypto-recession?

in steemit •  7 years ago 

Are we entering into a crypto recession or is Bitcoin draining all the net money into useless forks?

Steem is now under $1 again and crypto is being banned. At the same time many exciting developments are taking place such as SMT and the future looks bright. I do think Steemit needs to focus a bit more on the user interface and UX of the website as that is lagging a bit but overall the future looks bright. The question is how will Steemit as a community adapt if we enter back into the recession of sub 50 cent Steem?

More than likely these price drops are temporary because of Bitcoin forks being pumped. Of course these Bitcoin forks are the new altcoins and almost all of them will be useless. There might however be that one fork which really forks Bitcoin and people want to stay in Bitcoin so as not to miss out on that or to avoid the risk of being in the wrong fork.

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I'd be very disappointed seeing it under $1 it's been a while since it's been rolling around $1 and under , I hope within a month or so , it rises . Under then we can all save up

It will be quite disappointing if steem price tanks, but it seems to be a strong and stable currency, if it does experience a downward price movement, with a community like steemit it should get better in no time

Things will be better once the next bitcoin fork occurs in November.

I hate those bitcoin forks too. Even funnier is forks having their own forks, like Bitcoin cash is going to have one in November.

I really do hope that steem will surge higher going forward. Though I am also a bit skeptical seeing the dropping in the price of steem.
Thanks for sharing this

I think we're also seeing a generational shift in both the altcoins themselves and the class of investors entering the space. The forks are the obvious explanation, but there are several other factors that will determine the future of altcoins and Steem specifically.

True question is for people with plenty steem should you trade for BTC now or Hodl.. I think I would trade if I were rich in steem

I recommend being patient and just holding.

Wich one? Steem?

The Bitcoin forks are a backdoor dividend for Bitcoin holders. Steem got rid of it's dividends but used to have Steem Dollar dividends. So now Steem is at an unfair advantage.

I guess that it would be a good time to buy if you are a steemian? I am not planning on leaving as this is what sets the people that will be successful apart...just keep on steemin! Thanks for the post. Great learning experience here.

Don't worry, we all just have to be patient.

Will all the crypto combine into one?

I think it doesn´t have something to do with Bitcoin forks, but rather with powering down of people frustrated and not enough new people powering up or buying Steem. If most of the reward pool goes to whales shifting their voting power basically to themselves and friends and using bots excessively instead of curating good content, then no wonder that the active user base is not increasing. Greed kills in the long term.

In other words you believe the quality of the content is decreasing? At the same time it's a vicious circle. As the price of Steem goes down the rewards decrease and when the rewards decrease the quality of the content soon follows. If you expect people to spend 4-5 hours a day writing or planning content for Steemit to meet a standard of quality then the rewards have to remain.

This isn't to say you cannot produce quality content for lower rewards but the strategy shifts. Commenting on popular posts might become more effective than posting blogs of your own. Or posting very brief posts might become popular. Ultimately in order for people to power up you need incentives to hold Steem long term compared to the opportunity costs.

Bitcoin going up, and several altcoins (including BitConnect) produce an opportunity cost because now people can park large amounts of wealth into BitConnect, or go into Bitcoin to get free "dividends" from the forks.

By the way I'll be honest with you and say I do think the quality of the content can decrease. I try to keep my content at a minimum standard where it provides some value to the reader at any point in time. Added value to the life of the reader or follower is the strategy which means sometimes providing information, results, new knowledge about various topics I follow, or in some cases initiating discussions which are interesting enough to attract lots of people.

As long as bloggers continue adding value with every blog and comment the discussions may become timeless and produce lasting value as people months or years from now can discover Steemit through these discussions.

I am not saying that the quality is decreasing (overall it is still light years better than on other social media), just that the mass of people are not incentivised enough to stay for a longer term, mainly due to the unequal share of the reward pool. I agree that many people here, like yourself, are doing a phantastic Job, and indeed this is kept in time but it may not be enough eventually to lead the steem price out of this valley of sorrow. Because too many here don´t get an equivalent return for their time invested (like spending hours on a well researched post for 2 dollars, e.g. for me this is not sustainable). If rewards are slightly focused away from the whales, more people could be attracted. Of course, this would initially decrease the ROI on early steem Investments, but would probably pay off in the long run. And secondly the majority of people with very high voting power curate content predominantly for themselves, double accounts & friends. Not all, but too many. It is their good right of course, but again not helpful for the community.

Hi Dana, can you explain how the steem token generation works, I read something about the token generated doubles every year (scary dilution), and there is a 9.5% inflation build in?

How does this all factor into the drop from $1.x to $0.50....that's a big loss to lose half of one's investment.

Why would anyone want to keep building their steem account and funnelling hard earn investmetn $ -> STEEM/SBD?

The token does not double every year.

The rate that new tokens are generated was set to 9.5% per year starting in December 2016,and decreases at a rate of 0.01% every 250,000 blocks, or about 0.5% per year. The inflation will continue decreasing at this rate until it reaches 0.95%, after a period of approximately 20.5 years.

Source: Blue Paper page 2

Hi onthewayout, thanks for responding. I'm still new to steem, but I'm still sitting on the fence on how much to invest (resource, time, even $), I was thinking maybe slow get in say a few $100 a week or something until I see the price stabilize at $0.5? or I get proof that this is viable, now I'm already reading 1-2 hour a day when I'm not doing real world things, it's mostly junk, but a few authors are amazing.

What's your advise on this currency, do you know why there is already over 250,000,000 million steem tokens? How much did they generate out of the gate? or In the first year? 200 million? Please continue sharing. Thanks

I'm Upvoted for awareness, thanks @dana-edwards

It's sad to see steem go under $1 and now this seems to be loop, Steem go up we celebrate for short time and again it go down and hopefully we don't freak out, anything can happen, for now let's make sure steem still empowers the great communities uprising everyday.

Cheers,

@davidfumo

Hi @dana-edwards, if Steemit is the community that most of us here envision and aspire for it to be then I think in a world where content is increasingly becoming king (at least in the UX world anyway) then we may suffer short term losses but stand to gain in the long term if all the wonderful people here continue to support it the best way we know how, which is to produce quality content and support each other.

I would like to think that the community has the power to determine the future prosperity of its members, so if we don't want to end up like just another social media site driven and dependent on external economic factors, there is no better time to up our efforts.

The question will be how to maintain quality content even when the token price goes into recession. It's going to happen but the people who stick through the recession will gain followers and better position themselves for the next growth period.