In case you haven't noticed the price of Steem went up 100% in the last 24 hours to over $1.00 and does not seem to be slowing down.
This post is to ask you, the users, one simple question.
Why do you think the price of Steem doubled in one day?
I'm sure you all have as many opinions as there are users on Steemit and I would love to hear why you think the price has climbed steadily this past week and then just took off today. Do you think it will last?
In case you haven't noticed the price of Steem doubled in the last 24 hours. Here's a chart showing the rise of the price of Steem.
Please share your opinions, insights, and ideas about the increase in the price of Steem in the comments below.
Thanks.
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Steem Explodes Higher It S Time Everyone Looks At Steemit Again --- by @dollarvigilante
@luzcypher I had an earlier conversation with @kevinwong on this subject and I think it's a speculative bubble. It's an unpopular viewpoint, but I think it's the most rational explanation.
It was believed Mt.Gox had liquidity issues as early as July 2013 when they took a two week hiatus on all USD withdrawals from the exchange. At that time, Mt. Gox faced the prospect of losing their key USD payments processor.
As early as August 2013, people were paying as much as a 14% premium to purchase Bitcoin on Mt. Gox to exit the exchange. Since uncertainty arose around the solvency of Mt. Gox, Bitcoin on Mt. Gox has a significant risk premium attached to it. Speculators did not want to eat a loss of 14% on another exchange, so how did they recoup their risk premium? A Litecoin pump - the only available altcoin at the time. November 29, 2013 Bitcoin hits ATH of $1,242 on Mt Gox and coincidentally, it should be no surprise Litecoin rose 400% in three days - more than covering a 14% risk premium paid to exit Mt. Gox. Subsequently Bitcoin crashed to $600 per coin only days later.
Sound familiar? It is often said history never repeats itself, but it often rhymes.
I think the speculative bubble has everything to do with the Gox-like issues at Bitfinex. The reality is possibly hundreds of millions in USD is frozen in Bitfinex, while they pedal the same rational as Mt. Gox did for why USD transfers cannot happen at this time. Questions about the solvency of Bitfinex are echoes of Mt. Gox and now speculators are willing to pay a risk premium (possibly double digit as well) on all Bitcoin just to exit Bitfinex. Now, however, there is a whole marketplace full of altcoins to pump and dump to recapture the risk premium.
My $0.02 on the subject at any rate.
That does make a lot of sense and would explain the sudden rise in price in a handful of altcoins with no real news about them or any recent developments concerning those coins.
There are so many to choose from now as compared to the time of the Mt. Gox incident.
I don't see a spike in new users signing up to Steemit or any new news about it that would justify the price spike. Very informative and insightful comment. Thanks.
@luzcypher it would also explain why Bitcoin has "lost" 30 percent of its market share to altcoins in recent weeks. I would suggest to you, the start of the erosion in market share could probably be traced back to the liquidity issues related to Bitfinex (while I have not confirmed this for myself). Were I a betting man, I would imagine in the coming weeks Bitcoin will recover at least half the market share it lost once liquidity returns to the Bitcoin market.
When you can take Bitcoins and leverage them for 2.5 times on Poloniex for altcoins, it makes recovering your risk premium easy. Liquidity issues at Poloniex would explain the $100 premiums on Poloniex for a short period the past two weeks s well.
Interesting corollary/sidebar is the recent developments related the volume of trading issues related to Poloniex as well.
Not sure if there is any merit to it, but there appears to be some smoke which would cause one to consider problems may be afoot there as well. I recall about two week ago when LISK spiked, Poloniex halted all LISK withdrawals. Not sure if they have resumed, but it's cause for concern because traders are now having issues with other coins as well.
Interesting times.
@gavett wrote a post yesterday about how sign ups on Steemit is spiking in Asia. That may account for some of the price increase as well. I've noticed more Asian language posts here too. You can read his post here
@luzcypher that's an interesting post. I gather he's getting his data from steemd or piston.
I generally like to look at third party sites for some of my own traffic analysis, and Similar Web did show an overall increase of 400,000 website visits from March to April, with most of the incoming traffic generated by organic search results (just north of 43%). Seems the site is getting some good traction and traffic, which I am very happy about. I guess the big question is: did the traffic come as a result of marketing efforts about the community and new user discovery, or did it come from the Bitfinex related altcoin pump and dump and hype of posts earning thousands again?
I'm hoping it's the latter, my friend. If it's any indicator, I have started to trade STEEM on Poloniex/BTC on Poloniex, which is something I have always stayed away from. Let's see if the new user base remains sticky.
I have noticed more Asian language posts from new users. I'm upvoting them so they will stick around. Can't read them but voting anyway.
I think Dan's recent conversation on Block Talk was excellent. As he teased EOS he talked a lot about Steem and was very compelling. I feel that perhaps as he's getting out there with his new projects, people may be taking a second look at what has come before and realizing the incredible capabilities of this system. Bitshares is doing incredibly well too. Graphene in general may be getting a good look from investors.
I noticed Bitshares climbing lately too. Can you share the link to Dan's recent talk here? Would like to see that.
Thanks. I noticed that bitshares, which Dan started as well, increased in price too recently. Could have something to do with the Bitfinex's recent illiquidity issues that @lpfaust mentioned in the comments above.
People holding bitcoin on that exchange transferring into other coins so they can cash out would explain the spike in price of some altcoins, including Steem, without any major news.
I think it will reach $10!!
no, because it will be over $100!
Oh really? Why do you think that?
There are three points:
1, it has the basic application.
2, the transfer speed is very fast.
3, now is the golden age of digital currency
You forgot to say that there are no fees for withdrawals.
Good points. But why do you think it doubled in 24 hours? I can't find any news that would explain the sudden interest.
I don't know either. It should have gone up.
I believe it's closer to its true value but for the life of me can't understand the sudden price spike. There must be a lot if buyers coming from somewhere suddenly to make the price climb so quickly. But where are they coming from?
China!of course china!
Steem has been undervalued for a long time, even $1 is undervalued .Most investors seem to be misinformed about the inflation, the japanese aren't though.
Strongly agree. Undervalued for sure. Just saw this whole thread of comments, very interesting guys! I don't know much about these things yet so it's kinda cool that I can use "our community" to find out about these things and learn through other users etc.
I agree Steem is undervalued even now. Can you elaborate on the Japanese take on the inflation? Are a lot of Japanese people investing in Steemit right now?
Volume on Japanese exchanges is through the roof, they are investing in all cryptos :)
my boy Gregory Mannarino just recommended and others like The Dollar Vigilante have recommended in the past. I just heard about it through Greg the other day, he is who brought me here. I love the concept. I could see it blowing up.
Because Bitcoin is about to go Prime Time this summer.
I agree. So, you think that just suddenly made the Steem price jump up overnight?
Your guess is as good as mine, but I suspect that it will go up and down just like every other cryptocurrency has, but rise over the long haul because Steemit is a great platform.
So, you're saying it's one of the mysteries of life? Perhaps. There must be some explanation for it and someone here must have some idea.
I think bitcoin holders are diversifying into steem in case the btc bull run is a bubble.
That is an interesting thought. Why Steem though? There are so many other coins they could choose from. I am trying to understand the sudden spike in the price. Never seen it do that before.
Other alts are doing well at the moment too.
It wouldn't take much of that skittish btc to cause a big jump in the steem price.
I did the same when I first came to steemit. Eggs and baskets and such.
you are smarter than i thought...
we are displaying it on other socials medias. It just makes sense to get paid to post!
It does and we do. I've been Tweeting it and Facebooking it to different groups I'm on. All I use my other social media for these days is to promote Steemit posts. The Open Mic contest I've been running for 32 weeks now on Steemit has people uploading videos on YouTube to enter the songs they play, and they mention Steemit Open Mic.
Where do you promote Steemit?
facebook, twitter, youtube etc . We will have our official site up soon too.
For Vandalizm Recordz?
yeah it's being worked on as we speak
let bring it on... !!!
I think some investors are buying cryptos that are below their all time high. Interestingly steems high in market cap and price per coin are wildly different.
I noticed this too on some coins. Most that have a high market cap but a low price have mined a lot of coins.
there are no major news related to steem, so I can say that it is simply pump and dump actions... it started with xrp, str, bcn, dodge and now steem.... well just ride the tide and take profits... and hope the price of steem stays stable....
That's an interesting theory. But how can you pump up a coin without any recent major news about it?
if you have insane amount of btc in hand then certainly you can pump up a coin... i see steem is playing around 400 btc in poloniex buy orders... if someone uses up 400 btc to buy up all the order then steem will skyrocket more i guess... and if that happens then more ppl will join the bandwagon... its just my theory...
Great idea for a thread as people are always looking to know latest thoughts on the price of steem! The steem market was initially realised as a great model, but emotions got involved and last July (2016) the price went un-sustainably high. Since then the communities' perceived affect of the inflation shook almost everyone out apart from the hard core. Now that the inflation has been fully priced in, along with several other key issues (forks + youtube limiting earnings) the word is spreading and the market is trying to see if it can go higher. My concern is that a market rising this fast is usually unstable. So best thing for all is for us to have caution, don't over react and take some very small profits if you must (but very small). I hope steem continues its rise, but at a much slower pace!!
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I've been busy with other things for a few months, coinmarketcap.com when from 14 Billion or so to 40 plus Billion. I'm super impressed. I'm going to get more involved, and start to do some mining. Until now I just bought coins on a hunch, a million at a pop if they were cheap enough. Hoping for 1 to reach a $1 hehe.
A million at a time! Wow! Hope one hits for you. Incredible growth lately.
Great discussion point. I was about to start a similair discussion. The cryptospace definitely feels a bit inflated. However we also said that about the S&P 500 40 years ago This is quite an interesting website I found: https://www.coincheckup.com They seem to give this complete indepth analysis of all cryptocoins. See: https://www.coincheckup.com/coins/Steem#analysis To check Steem Research report