It’s a new era, an era of Steemit :
What is better than than a dynamic fusion of both social media and cryptocurrency, Steemit was my first choice for investment, before the bitcoin “hype”, I was almost sure it would crash, and recently it was down 22% in three days, even though the price is still absurdly high, the Bitcoin price drop was more than expected. Besides the fact that its fees were gradually rising for years thanks to crowding on the network, once the cryptocurrency got famous, it payed the price, and it’s all due to this intense civil war it has created after surfacing all over the internet, and once articles were shared all over the internet, investors started buying Bitcoin and trying to use it for purchases, except that they discovered the amount of money they are losing due to the transaction fees. Some perceived the drop as a consequence of infrastructure problems, and the difficulty of digital currency scaling, but how was it so obvious to me, and why is Steemit very important ?
A Great Depression-esque crash in the 1995-2000 was very well-known to drive many businesses towards bankruptcy, I am interested in one specific example, Amazon, and how it managed to survive the immense bubble crash. The infrastructure and the investors were the main base to keep the structure from collapsing like dominoes, and whitin less than 3 years, Amazon proved that it’s viable business structure has a strong base, not only financially, it was a great matter of extreme organisation, shareholders and inverstors’ motivation, the timing was nothing less than perfect, the stocks were regaining value slowly after the destructive damage wave. The long-term strategy of capturing market shares at the expense of short term returns which led the company to making profit that grew consistently despite the dot-com crash. As the market was fragile, it was apparent to all investors that dividend expectation in the short term is very unlikely to happen but Jeff Bezzos’ promise to maintain market share increase was delivered as promised, one of the few companies to summit directly after the stock value severe fall, and it was all thanks to the solid strategy, it was very important for the company to keep investing and running which helped the revenues grow consistently. Now you probably wonder why I focused on this specific occuring, as many of you know the current Bitcoin crash is nothing but one of the somewhat inevitable consequence of mass exodus of investors all rushing in at the same time, which will never cease to cause a bubble as the market can only handle so much, but can a digital currency handle it?
After all, the absurdly high transaction fees are not as absurd as they may seem, they wihthold the substantially high value of Bitcoin itself, holding 20,000 $ before its crash to 15,262 $ currently, which stocks’ are constantly subjected to the leverage effect, just like an option, the common form of a derivative that promises uncertain high profit accompanied by a very high level of risk, and what should be noted is the uncertainty part, as it is the key to every trade, purchase, investment.
Steemit is important, and you might be risk lover or risk-averse, it won’t be an obstacle, with not only highly promising stock values, but the strong loyal community that is built through a firm strategy, a very supportive and constructive community of positive and intelligent people, as the cryptocurrency market keeps getting more competitive, if there is one thing that I’ve learned in my years of finance studies, is that predecting the future is impossible, and that working around the pros and cons of the many methods of investing and trading are so numerous and interesting yet the one rule that we end up hearing is to simply avoid anything with high risk, unless it is certain, which is possible (a specific method that I will explain in details on my next post, it will require technical information and some definitions for beginners too). Steem developers have bootsrapped an entire economic system with its own crypto-currencies, the fact fact that it is peer-to-peer, uncensorable makes it unstoppable, the flexible content creativity, and the solid base. In my research, I went through many different cryptocurrencies, the weak algorithm establishment limits access to the system, and the less people that have access, the lesser the chances are to increase profit and develop high revenue, unlike Steemit, the social media aspect is more than a community creator, it establishes the core of a system that insures success, motivation, innovation and creativity. Having a long-term perspective on Steemit allows the constant expansion of platform, and the willingness to share trading ideas and innovative methods in order to build a stronger and crash resistant infrastructure that ensures development and value increase.