Nice post.
I wonder though... bitshares is trading at a third of a penny. Many didn't think steem could go below 10 cents. How can we know where the bottom is?
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Nice post.
I wonder though... bitshares is trading at a third of a penny. Many didn't think steem could go below 10 cents. How can we know where the bottom is?
bitshares have 10 times more coins in circulation. Also steem and bitshares do not target the same market at all.
I agree the price of steem could go lower but both are not comparable.
I wonder though, are they comparable in terms of people not fully understanding them? Dan (IMO) has created two incredible systems, but they may be so technically complicated that others aren't willing to fully accept them so they instead invest elsewhere. Maybe it's an issue with the delegated proof of stake approach. I do think there are some similarities, though, as you said, they are targeting different audiences. That said, many of the witnesses are currently the same.
I try and look for the bottom every day in my daily report. I'm finding the initial indications of it but I can't declare it yet.
I don't know enough about Bitshares to speak intelligently about it.
The old catching a falling knife routine. Not an easy thing to do. :)
Simple answer is: we can't. Guessing the bottom is pretty much impossible, so the only sensible thing to do is keep making small purchases every time the price dips, cost averaging your way into large Steem holdings over time. With this approach, as long as you are consistent and keep it up, then at least your average buy-in price will be somewhat close to the bottom when we finally hit it.
Sounds like a good plan to me. Hard to do this on a currency that's decreasing in value instead of doing it on a currency that is increasing in value though.
Yes, from a psychological point of view it's harder than buying something which is going up in value. And there's no guarantee the price will eventually turn around. But the old saying "buy low, sell high" comes to mind. Too many people seem to be doing it the other way around... and with high risk comes high reward.
I find it helps if I buy with money I don't care about losing. If I bought, say, $5000 worth at once, then I'd be pretty pissed off to see Steem subsequently drop by 50%. But if I just chuck in a couple hundred bucks every now and then, it doesn't feel like a big deal and I can just forget about that money for the time being.
It could also be a case of throwing good money after bad though.
Which is another good reason to never go all in and keep your buys small. My Steem Power holdings are roughly 7% of my entire investment portfolio. If the whole thing goes bust, losing that money won't affect me much in the long run. It's all about risk management.
Replying here due to 'nesting' restriction...
Agreed. I have committed myself (and plenty precious time) to Steemit and Steem for two years so I am basically 'all in'... but I have only spent a small bit of BTC on purchasing Steem. Here is hoping it takes off ....
Imagine steem at 0.1 cents. We, the community shall manage who get a slice of the pie, like literally!