So.. A while back.. Maybe around a week ago I made a post about how I read the newest update from steemitblog and it looked mostly positive with not a lot of criticism for a change...
Then I went back to that thread and read it again and there was a ton.. And some good points that the steemit "team" seemed to have some difficulty with.
I'm trying to cut through it all to try to figure out what's going on and I see there's quite a debate going on about a number of things.
The one that concerned me most was the value of steem.
For a while now I've been mostly shrugging it off as hey.. Bitcoin went down so will steem and the rest of the market.
But.. That's not quite what is happening. It wasn't long ago that bitcoin was at around $6.500 and I remember steem being around $3.00 when it was. I could be mistaken but this is what I remember.
Now steem is hovering around less than $1. And bitcoin is at around $6.500.. That's like.. A significant loss of value.
How to explain it? Does anyone know why it's bleeding value so much? I'm guessing if they do they are probably pretty high up in the power structure.
My guess is.. And I could be wrong, I'd be happy to get someone in here to help show me a different point of view. But my guess is that too many people have learned to game the system in ways in which they are pulling out more money than they deserve or earned.
And if this is the case.. Perhaps people like Haejin who posts pretty basal/simple content yet does it like 8 times a day and just makes tons.
I dunno how often he is cashing out or if he is a major factor in this or not, but I'm using him as an example.
What if there's a bunch of people sorta like him, who are just.. Putting out lousy content and RAKING it in, and continually cashing out?
How can we ever really maintain that even with all the investors in the world? And that's what steemit appears to need.. More investors to put more money in, but if there's so many people gaming the system that it's depleting the value this much.. Won't that just keep happening the more investors you get?
Seems like whatever the problem is, it has to be fixed.. Or eventually people will lose faith because they invest so much only to see their investments lose value.
Any currency works because of the faith a community has in it and if people lose too much faith in steem, it won't work very well.
I'm not suggesting anyone to panic or sell or do anything like that, I don't even know if my guess is right. Maybe it's something else entirely! But.. It is a concern, it does appear to be losing value more than just the flucuations of bitcoin.
I'm personally going to wait until AT LEAST SMT's go live before I decide, I still think there's tons of potential here.. I've seen behind the scenes enough to believe it's not a scam.. There's just too many people working on this who believe in it that are smart people at so many different levels...
If steemit was a scam, it was one of the most brilliant ones in history. I don't believe it is, but I do think something is wrong and it's bleeding value for some kind of flaw that could HOPEFULLY be addressed.
Could it have to do with the recent unannounced to my knowledge and unexplaind to my knowledge powerdown of Ned?
He claimed he's still working on steem full time, but.. In the conversation I did not see him publicly say why he was powering down and transfering that money and what it was for.
I really don't know.. Would appreciate anyone's thoughts.
Oh.. Another thing I wanted to mention was.. I've been a bit discouraged lately to get very few comments on my posts.. Often like 1 or 2 comments and it reminds me of Facebook which has a similarly gimped algorithim.
I would think.. If steemit inc could just fix the algorithim ALONE, that would solve so much.. If people didn't feel like they were talking to themselves, and that instead of 1% of your friends list/follower list getting your stuff it should be up around like 15% or maybe even more.. If they did that ALONE.. I think it would be major.. Though so many people quit cause no one even comments or reads their stuff.. Other than bots.
For example.. I just checked out Haejin's page last night and he's getting like.. 2 comments on some of his posts, ones with like 5 or more are usually all bots except for one person.. He seems to be averaging around 1 or 2 human comments a post and he has over 30 THOUSAND followers.. WHAT THE HELLL?!?!?!?!
I don't feel so bad when I only have something like 3500 I think? And I'm getting similar comments as someone who has over 30 thousand followers.. I mean.. Wow.. Something does not seem right there.
Meanwhile though, on an interesting note.. You have someone like berniesanders who posts a picture of a lightswitch in attempt to mock either steemit or Haejin or whoever, and he gets like 60 comments for posting about trivial nonsense and I'd say a majority of those comments are probably genuine humans and not bots.
So.. I mean.. It seems to be working for some people, if you have the right reputation and post the right content you'll get a lot of feedback.. Maybe Haejin's content just sucks really bad afterall? Still doesn't seem right though.. Over 30 thousand followers and a couple comments per post.. That is weird.
I've been decently optimistic for a long time about steem, though I just have to wonder.. How long it can maintain if people feel like all their investments keep losing value? I think whatever faucet is allowing so much to leak out needs to be addressed somehow. For example.. Bitshares is ranked higher with higher marketcap and so is dogecoin which I hear is suppose to be a joke coin? That doesn't seem right!
Can someone explain some of this stuff to me? I would like to feel better about all of this, and be able to continue to suggest people come over to steemit to try it out, though.. It's kind of difficult when I see a lot of these tough questions not being answered.
And lets be fair, the steemit INC team seems to be very active in the steemit blog responding to criticism, though some of the things I saw they didn't really have answers for.
I have a lot of respect for some of these people, one of them even sponsors our IFC contest that I helped come into fruition.. So once again.. I don't think this is a scam, I've got behind the scenes enough to meet a good amount of these people and they are smart people who believe in this..
However.. Something seems wrong.. Something is out of place, for some reason the value appears to be dropping more than just the relation to bitcoin, unless I'm reading something wrong? Please enlighten me if you have any good info on any of the things I mentioned. I will continue to watch and study this and form my opinion over time based on what I see and learn and share it with you. Thank you for your time.
Increase of January was too fast, things are coming back to normal, 1 usd/steem is a good price isn't ?
The problem is , they knew it was going to happen so they all cashed out and left , there are now less whales in power and the ones holding on , have to wait longer . I just hope I was not stupid enough .
I wish I cashed out Steem when it touched 9$ , life would have been different
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I'm not so sure that's the case or not. However I've theorized before that it's possible that if that did happen that it would create a vacuum and sort of like in Iraq if you take out Saddam, then ISIS will spring up and something will always spring up to take it's place, so if they leave, I think other people will come in to take their place, and some have speculated that hey.. That might even be better for the value of steem if that did happen. however, I admit I know very little. Hopefully in time I get some better answers to some of this kind of stuff.
I wish I knew myself , we need answers so we can make an effort to drive the price up
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Agreed! It can be extra difficult to try to solve a problem if you don't even really know what's causing it.
If it helps, I have seen the exact same pattern with all the alts that I follow. Bitcoin drops, they drop more. Bitcoin makes a brief recovery, they start to follow, then get hammered down even lower. Besides Steem, EOS, MANA, Etherium, and Litecoin are all lower than they were the last time BTC was at $6500. (Those are the only ones I watch).
BTC is an attention hog, and I think people put their money into dollars if they think they might get a chance to pounce on some cheap bitcoin. Or if they actually think it's going to tank.
That is very helpful! Thanks! :) I'm not invested in any other coins so that was sort of like a missing part of the puzzle for me. Doesn't answer all of my concerns, but.. That was a significant one and helps give me more faith back in things!
I appreciate this post, and I'm watching and waiting with you.
Thanks for letting me know that you appreciated the post! And well.. I suppose we should at least have fun while we wait. :) On my end we do on a contest so we'll just keep playing our game while we wait! And hopefully in time it goes in a more positive direction. ._.
I don't think that these guys cashing out or gaming the system has a direct effect on the price, you know they have been doing this for a long time, and the reward pool has remained more or less constant so in my opinion I don't think that is a big reason for the price. What really surprises me is that the price goes down all of a sudden, when we know that Steem takes a long time to power down. Could some of the bigger holders get together and all power down at the same time, causing the dump? It is a possibility but somehow I can't see something like this not filtering out.
Thanks for the feedback gduran. I'll try to address a couple of the things you mentioned from my point of view.
I'm not sure I agree, I showed how it's dropped in value compared to where it was before when bitcoin was at around this same level. Many people are complaining of the low value, it's not just me. I'm not sure I understand your point there.
This is possible I think. But.. I don't really have any evidence for it, which is one reason I made this blog post to ask people about it. So thanks again for answering and sharing your point of view! I appreciate it.
Frankly I was saying that because I saw a post by @dragosroua that I thought said the reward pool was at its highest, I looked it up again and it seems what he meant was the rewards fund and I'm not sure if that is what I originally thought it was.
https://steemit.com/steemit/@dragosroua/steem-rewards-fund-at-another-all-time-high-over-769-000
Ah. I see. Thanks for the clarification and the info. I'll check out the link you included thanks.
Yeah sorta looks like they are inflating, which would put further pressure on the value of steem sorta like what's goin on with SBD and how they're now printing steem instead, that will put further pressure on steem.. But.. hey who knows.. Maybe it will end up being a good chance for more people to get involved...
Didn’t think about comparing the cost back then before either. Doesn’t seem very good then :(. Hopefully it bounces.
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Agreed! I haven't personally invested anything, but my account is still worth quite a bit and I'd like it to be worth more, also my father has actually invested a bit and I feel a lil responsible for getting him into steemit so I'd like to see it do well now, I'd like to see my father make some money and not lose it. And.. I'd also like to make some money too, that'd be cool. I try to look at it without the money element, but once the money element is there it's kinda hard to ignore. Anyways.. I think it's a pretty fascinating adventure/journey of learning and all that kinda stuff one way or the other! Lol. ._.
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