Is the tail wagging the dog? I always thought that higher usage and uptake would drive up the price of STEEM....but it looks to be the other way around. Increased STEEM price means increased rewards and that's attracting higher usage. Hope it lasts....
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But the upwards trend in posts and comments did start before price. Of course there's a feedback loop, so the bigger moves happen later.
I'm not sure about that. The SBD has been pumping for weeks now. STEEM has really only taken off in the last week or 2. Hard to know the true causation effect here, but you are right it is in a positive feedback loop now and it's all about momentum now.
You can see in @arcange's stat posts that the uptick in active users, posts and comments began at the start of November, before the SBD pump. I agree, causal analysis is pretty much a fools game in something as complex as this market though.
I'll take a look. Thanks for the tip!
Like everyone else here I am just trying to understand whats happening and nobody really knows for sure.
Are you able to sell steem coins somewhere ? I know poloniex is has "temporarly disabled" function of accepting any steem !!
Poloniex should be working again now. However Bittrex is the better exchange to use, they rarely have any issues.
As noted below, Bittrex isn't accepting new users, so use @blocktrades instead.
Bittrex is not taking new clients for now, however. Poloniex is working again but they are always a risk of having issues.
I wasn't aware of that. @blocktrades is your friend in that case.
Frightening thought. We need some more alt-coin exchanges to step up and take on STEEM trading. I have high hopes for Binance.
Ok, now I see. Thanks a lot ! I will try it.
Please do! Hope is the only thing holding these markets up right now.
Usage has nothing to do with price. If I send you one steem once a day, and you send me one steem back once a day - or if we do this 10000 times day does not make any difference, right?
As long as the money flows, the price is not changed. Only when there is a reason to stopping the flow (or sucking in more) the price changes.
I think you're wrong. I can tell you with 100% certainty that I, for one, am making an effort to write more frequently now that the SBD price is boosting rewards so massively.
Well, that's you, we the early adopters were active when the price was 10 cents and never stopped when there were 0's and 100's on our posts. Beeing a steemian is far more then just trying to exploit the hype.
Wow. You early adopters are so god-like.
So your writing much has increased the price?
No, usage has not increased it.
I think we are speaking a different language.
I will try to expand on my original point. In the traditional business world a new venture in social media would be valued based on its network effect. Increase in usage and adoption would mean an increase in value and that would cause investors to buy the stock. In this scenario Usage drives Price.
Here on Steemit I am suggesting that increase price for STEEM and SBD is potentially attracting new people to the platform and encouraging existing users to post more as they are now being rewarded more. In this scenario Price drives Usage.
In truth both scenarios are possibly in play and as @demotruk so succinctly put it "there's a feedback loop" and you and I could have a "chicken and egg" argument now but I think I'm done here :)
Ah, so you are not talking about usage that drives prices, but the speculators seeing an increase in usage and buy!
That is a huge difference, it's different people acting and changing the price.