The discussion of late is about the potential to fork the Steem blockchain to get rid of the accounts that ninjamined the tokens. Well, actually, I do not know if that is true. The idea is to fork the blockchain to get rid of Steemit's accounts that are holding tokens which were ninjamined. I cannot speak for other accounts that acquired their stake in a similar fashion. If anyone knows the answer to that, please let us know in the comments.
I saw a couple of posts that supported this idea although the overwhelming number of witnesses are against it. One of the reasons mentioned by those supporting this move is the fact that Steemit Inc is continually selling their stake, thus having an impact on the price of STEEM. This makes sense since that does create a lot of selling pressure.
@aggroed tried to get an answer out of @ned in the Town Hall Meeting about this topic. The number thrown out was 800K STEEM sold per month. It never was verified. Nevertheless, the premise of the questioning was the downward pressure this put upon the STEEM token.
I understand how this does impact the ecosystem Developers often require these funds to get things done on their applications. With STEEM so low, it is hard to entice coders to take payment in STEEM. If they do, the amount is so high because of the low price that one can go through their stake quickly.
A couple things that come into play with this. To start, we cannot ignore the tremendous bear market that we were subject to. The FUD was excessive and consistent. There were many real life Whales who decided they wanted the price of cryptocurrency lower. They accomplished that.
The other point is even more important. While the selling of STEEM by Steemit Inc might have negatively affected some developers, it was a good thing for the ecosystem. Isn't one of the biggest complaints on here the fact that the Whales have too much power? Do we not want a more equal distribution of the tokens? When the STEEM sold by Steemit Inc hits the open market, aren't we seeing a number of other people buy up those tokens?
Judging by the statistics, that is exactly what we are seeing.
The reward pool is a wonderful way to distribute new tokens. Over time, we are seeing a positive impact here. That said, it is a very slow process. Smaller accounts do not have enough of a stake to get a significant amount of the reward pool. I do not feel there is anything wrong with this because the model does payout over time. I see a lot of accounts working their way into larger categories. It is painstaking though.
A shortcut is to buy STEEM. This is, of course, a lot easier when the price of STEEM is down. Those who took advantage of the low price over the last 3-4 months were able to add a nice position without spending a fortune. Sadly, we did not see more smaller accounts taking advantage of this.
I personally was fortunate enough to take advantage of the situation and add to my stake. I am a believer in the Steem blockchain and what is being created on here. I am glad for whatever drove the price of STEEM down, including Steemit Inc selling off part of their stake to pay the bills.
This activity takes on added meaning if one feels the "ethics" behind the accumulation of those tokens is questionable. Getting them on the open market to be bought by others who believe in the ecosystem is a healthy thing.
I maintain that the difference between cryptocurrency and the fiat system is the direction the currency is flowing. Under the fiat world we live in, a larger percentage is going into fewer hands. Cryptocurrency, while new, is the exact opposite. Less than 3 years ago, the all the tokens were in the hands of a few accounts.
For over a year, I put up a monthly report that followed the breakdown of MVests by category. During that time, we saw a major shift in the number that each category is holding. The non-whale categories all saw their numbers grow.
Since the end of November, I also am monitoring the number of accounts that reach different levels of SP from 5,000 on down. In that time, we saw each interval grow in number.
Certainly, the best resolution for the entire ecosystem is for Steemit Inc and the community to work in harmony to grow the entire platform. That said, I do not think it negative that they sell a part of their stake to get it in the hands of others. This is a natural process and one that should take place over time.
Down prices hurt in many ways. One area that it does help is it allows smaller players to increase their stake without investing an astronomical amount of money.
To me, a large account selling out is not necessarily a bad thing. Over time, it enhances the health of the ecosystem even if it does hurt a bit in the short term.
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less for whales more for us
I agree with you. So many people are asking @ned to stop Powering Down and I say the opposite:
Sell it all so we can get a truly decentralised Network, not as dependent on what a single account does or doesn't do. 😂
I fully agree
I completly agree! It is true that, for the short to mid term, Steemit inc. Market downward pressure isn't helping. But for the long term I see:
A more decentralized social network where the capital is better distributed and kept in circulation!
With the present steem price I see it much easier to power up, and so do probably the new comers. The HF20 made it more dificult for plancton, but with the steem at this price it becomes more atainable to be a minnow as a start investing 300$...
Bad, or less good times can be a period to reflect about the comunity and be active and creative! Look at all the apps around the steem blockchain!
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I just hope we're not in a pump and dump situation, that is a hell of a lot of steem to put on the market, isn't it?
Hi @clumsysilverdad
We can only hope that not much of that Steem will be dumped. But yeah, price is clearly pumped already. I wonder where this current demand is coming from.
Yours
Piotr
They picked a helluva time to dump, lol. If you want to sell a dump would be terrible. If you want to buy a dump would be great. It's just a matter of perspective.
I think they are powering down just to tumble and mix the stake into anonymous accounts. I'm not expecting much more downward pressure. We were pretty oversold at rank 52.
Dear @edicted
Great comment buddy
Downward pressure can be created easily by spreading another wave of panic, which may start with people selling STEEM now since price went up way over 50% within few days. Wouldn't you agree?
Yours
Piotr
Dear @martusamak
Great post buddy. It seem that we're both on the same page with our approach towards current events.
ps.
I found it quite amusing that for past few days everyone seem to be worried of STEEM being dumped into market by Steemit Inc which could cause price to drop, and at the same time we're experiencing over 50% increase in price. Which noone can explain.
Yours
Piotr
Truly! Thanks for putting to words what i hav3 been thinking. I for one am beyond grateful to have a chance to build my stake during this downturn. And, quite honestly, hope to grow it more so i am selfish hoping the price stays down. My blogging efforts bring in a trickle of growth but investing fiat has grown it the most. All of this is quite a learning curve. When buying Steem i found fees so exorbitant that i started talking to the community about it and have come up with another idea to buy Steem direct from my peers who want to sell their stake, skip the exchange. I'd love to try this and grow in this way!! It's not like tokens are going anywhere. My 4 year old nephew was over yesterday. He found a quarter. But, he called it a token. Not money or a coin. I found that interesting too. Great article as always Task. Have a fantastic day!!
I agree that having the Steem more spread out would be a good thing. From what I've read though, Steemit Inc isn't planning on selling the Steem they power down, they're just moving it to more secure wallets. Regardless, it will mean that more of the inflation goes to other people if they have theirs stored as liquid Steem, not SP.
Dear @themanwithnoname
We're clearly on the same page here.
ps.
I found it quite amusing that for past few days everyone seem to be worried of STEEM being dumped into market by Steemit Inc which could cause price to drop, and at the same time we're experiencing over 50% increase in price. Which noone can explain.
Yours
Piotr
I agree, thanks for sharing.
Also, I suggest that you describe the plot you have included or at least label the axis, add a caption and title it so it becomes readable.
What I am looking to see is who is buying right now... The huge powerdowns have not been sent to exchanges yet but proces have increased in a flat market. I think it could signal a potential whale buying up stake for a project of some sorts. It is clear that volumes are higher than usual so it will be interesting to see how it plays out.
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Dear @newageinv
And would you have any suggestions?
ps.
I found it quite amusing that for past few days everyone seem to be worried of STEEM being dumped into market by Steemit Inc which could cause price to drop, and at the same time we're experiencing over 50% increase in price. Which noone can explain.
Yours
Piotr
I would suspect that there may be a group of investors are buying some up to launch a blockchain project on Steem. However, some are saying it has to do with Bithumb opening their wallets.
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Hi @newageinv
Thank you for your kind and mature reply. I really appreciate and value your comments a lot.
Yours
Piotr
My understanding wasn't so much that Steemit's stake was sold off (although I think that was a concern), it was that the stake was going to leave to exchanges, and then come back under different accounts which may then vote for different witnesses.
Surely if that was the case and the accounts all voted in sync they would be quite easy to spot.
I totally agree.... but, I mean, if you were smart about it, you'd be a little bit more subtle... like gtg has been the number 1 witness for the entire time that I've been on the platform... and then overnight he's number 10. Could totally be a co-incidence... but...
I have a feeling they are not selling, if they where selling the price would be diving down to new lows as they hold over 10% of all the steem. Instead its doing to opposite. If they do sell off I think its going to be a flash crash and not what we are seeing right now.
But yes steemit should sell to cover costs but should also contribute some how to the price of steem by running ads etc. From what I recall steemit takes 25% of every upvote
I've been waiting for the price to fall down to $0.20. We did hit $0.21, but that wasn't $0.20 so I didn't buy. Is this the beginning of the rise up or will we fall a little bit further before rising up again?
I was thinking at the end of January we would dip down more before really taking off in or around March.... now I'm not so sure.
Dear @jeezzle
Im sorry to hear that you didn't manage to buy while price was almost hitting your target
I strongly believe that this price will drop very fast, very soon.
Yours
Piotr
What's your prediction?
I would expect coming back to latest levels @jeezzle
I don't expect @ned is going to change his mind on the powering down. Just my opinion. Although it is somewhat comforting to see support for Steemit Inc to stop the power down.
Yes, the current situation can make STEEM more affordable. The price can be turned around though and the reward pool can be improved indirectly through price.
It is all relative to the price of STEEM. The ecosystem and individual rewards can improve if STEEM and SBD are listed on more exchanges which drives trading volume and then drives price. The recent STEEM pump is due to the news that Bithumb reinstating deposits and withdrawals. It is almost equivalent to the exchange listing STEEM for the first time. That is the power of listing STEEM on exchanges.
Since Steemit Inc is doing such a horrific job getting STEEM listed on many exchanges, the task needs to be accomplished by someone else. I have built an incentive for witnesses to execute this task. I have a large group of people willing to cast a witness vote for the witness that accomplishes this goal. We now have reached the threshold of an equivalent whale witness vote to incentivize witnesses to go out and accomplish this task.
We are in an interesting position now. Since Steemit Inc has done such a poor job getting STEEM and SBD listed everywhere, we now have enormous options to get STEEM and SBD listed. There is a large selection of exchanges to choose from. The listing fees are also discounted. When the price of the entire market soars, listing fees are going to be sky high. Now is the time to jump on this opportunity.
I would like more participation in the form of people to volunteer one witness vote to a highly motivated witness that accomplishes the challenge of getting STEEM or SBD listed on a major exchange.
https://steemit.com/witness/@socky/witness-bounty-we-now-have-an-equivalent-whale-vote
Most importantly, Steemit Inc has a lot of expenses because development and running nodes and hosting images costs money. Because Steemit Inc has no fiat revenue stream other than selling its stake, it is unavoidable that the selling will go on.
That is true although their recent moves have dropped the price of running the nodes a great deal. If my understanding is correct, we will see a further drop when RocksDB is completed.
And they did add in advertising which might help their cash flow. I am not sure of the success of it yet but it is something.
Consistent selling by a big fish is not the worst thing in the world. Let others get their hands on that STEEM.
I agree. I wonder how much on ad revenue Steemit Inc is making from ads shown to the users of Steemit.
Hi @taskmaster4450
What do you mean? You mind telling me?
Yours
Piotr
That's a very good point @markkujantunen
Bad for us in the short term, but good in the long run 😉and don't forget if it's possible to sell someone must be buying!
I have been buying where I could. So were a few other people who I interact with.
But yes, there was not the widespread buying that you would hope.
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ninjamined? ... in first sentence
This whole powerdown debacle doesn't matter much in the great scheme of things.
What happens when the Federal Reserve done goofs? No problem!
Just print 15 trillion more dollars and bail out the broken system! Who pays for that mistake? Everyone holding USD.
This is not fractional reserve central banking. When Steemit screws the pooch, they foot the bill, permanently. No double spending allowed; no printing out of thin air.
Everyone who holds Steem has an incentive to make it worth more because of the rules we've chosen. No one has any incentive to make USD worth more because the fed can just print more whenever.
Agreed. Good post.
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Excellent @taskmaster4450.
Seriously such a good read.
Really interesting point of view. Thanks for sharing.
I found it quite amusing that for past few days everyone seem to be worried of STEEM being dumped into market by Steemit Inc which could cause price to drop, and at the same time we're experiencing over 50% increase in price. Which noone can explain.
That's a way to go :)
Is there any tool that allows you to do it? Or did you create one yourself?
Yours
Piotr