Does a Low STEEM Price = Better Platform?

in #steemit6 years ago

Many people have asked me lately what I think of the Price of SBD and STEEM going down and I have been asked that many times I though it a perfect question to detail in a post.

source

The entire crypto market has been seeing difficult times and STEEM and SBD are not escaping. I’m not too worried about this because my goals are longer term so the current price means nothing to me.

For Steemit I think the lower prices are a good thing. After going through a period of high prices and for some, very high post payout values, this has attracted many ‘get rich quick’ type people, more plagrisim, more spam.  These lower prices mean lower vote value and lower payouts. If Steemit becomes less attractive my hope is that many of these will leave for more lucrative pastures.

For a long time, the price of SBD has been higher than USD$1 and many people, including me, were enjoying the ability to use this as liquid funds for other things than SP.  There are many of us here on Steemit that have enjoyed this and also have a long-term vision. But the high SBD price also encouraged a growth in short term thinking and the use of steemit as a cash cow.  I hope the lower price of SBD will either help change the mindset of these people or weed them out.

If you are concerned about the price of STEEM and SBD then the best thing you can do is Hodl. The more that people hold, the less the supply.  If supply can not meet demand, then the price will go up.  Well that’s the theory anyway.  

Taking the lower prices as a good thing for Steemit and those with a long-term vision, now while prices are low is the best time to be active on steemit.  Its shows commitment, loyalty and dedication.  And if we weed out some of the crap, then there are more vests in the rewards pool for those working hard.

I believe a low price of STEEM will create a better platform for content discovery.  Would you agree or disagree?  Please do comment below and let me know your thoughts on this.

Then there is the technical side of SBD and its role in Steemit.  Although I have read a lot about it, it still confuses me a little.  So, to try keep it simple, the market has dictated the price of SBD but the blochchain code includes mechanisms that helps peg SBD to US$1.  It also has mechanisms to reduce the debt ratio because too much SBD in circulation is not good for the price of STEEM as it makes STEEM less attractive for investors.  Taking this into consideration, my feeling is the best thing to do with SBD at the moment is hold on it to for use it to buy STEEM and Power up.

I am a keen believer that Steemit needs more long-term thinkers.  We are still in beta and the STEEM blockchain needs time to flourish and the ecosystem grow.  

I said it before and I will say it again, the accounts that will keep my support on Steemit are the accounts that show long term promise, not those that want to use it as a cash cow.  And I am not the only one that feels this way.  I am aware of many others with much higher SP than me that stop supporting accounts that don’t have long term vision and I know others that wont even begin to support accounts till long term vision has been proven.

STEEM ON

xx

Paula

  A shameless plug now @abh12345 and myself run the witness @steemcommunity – please do consider us for a vote 

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I'm not sure I agree that lower steem and SBD prices will improve content quality because I'm not sure I agree that people spam, scam, plagarize because they are seeking high SBD/Steem, but in fact because they are looking to acquire a crypto, regardless of its price.

If Steem was like 0.01 USD perhaps that would mean lame spam/scammers would disappear because then the reward would be perhaps too minimal, but unless we get down that low, I think spam/scammers will stay, unfortunately.

you may be right. but there is always hope

all whale complainers could buy Steem now, to at least become a dolphin.

you are so right. I am not a whale complainer, but I'm just waiting to have some funds to buy some :-)

If a few thousand active people bought 100 steem and powered up, it wpuld make a difference. Unfortunately, very few want to buy-in, just take out.

i never powered down the last 1,5years

Between the 1st and 11th I plan on picking up a min of 100 steem to power up. I am hoping the price does not go up. I plan on being active until at least 2135 , Apr or Nov. Not to sure on the mont, it's a long way out

Who is this @abh12345 guy. Is he part of the Indonesia League, Which is going great BTW

@felix.herrmann, I agree, it's time to buy steem, to increase Steem Power :)

I also wrote a bit about this last week, and I totally agree with you.

Yes, of course it is not so super rewarding seeing your good post payout only a couple of cents to a buck, but on the other hand. It is still free money.

I also enjoy the engaging at this moment a lot more, because so many more people are now like 'stuck' together. These relations seems more meaningful in a way. Its not bad having these kinds of times

(but yeah in the end we all want steem to moon again hihi)

I would rather STEEM moon than SBD :-)

Totally agree..! SBD should go to where it is designed for ($1) and then Steem can come to its full potential.

Yes the high SBD was attractive but that will not hold in the long run, and this is a marathon not a sprint ;)

It's pretty difficult to keep positive mind set when all the markets are falling down, but reading posts like yours definitely encourage to hodl. We truly believe in potential of steem and it's ecosystem, that's why we are writing our blog only on this platform and nowhere else. Hopefully this downtrend will shake off most off spammers and get rich quick thinkers. Good luck to you in everything and steem on!

This is a well writen post,i agree with almost everything.

I celebrated one year on Steemit just 5 days ago and have witnessed the prices when they are high and down!

As you stated,the high prices always bring scammers who want to make quick money...the get rich mentality. I have seen this in my 1 year here

After going through a period of high prices and for some, very high post payout values, this has attracted many ‘get rich quick’ type people, more plagrisim, more spam.

It is fascinating to note that right now we get more SP from posts because of low activity.It is only the long term thinkers who can stick tothe lows of crypto.

I am happy because i am a longterm thinker....I am also sure Steemit will stick around and deliver results to us the long term thinkers.

This hard times(low prices) is the time to separate serious folks from the unserious(get rich quick!) guys.

I will stick for the longterm .

I think this drops in the markets are fine, everybody here is a long term investor, so this dips can't scares us!

We can see that the "commercial war" is influenciating global markets, and crypto is no exception, we are going down in the same way, the tendency is to go down, so we follow, which in my opinion shows that we are getting bigger in the global scale, because we have seen before some drops in stock markets that didn't influentiated us, for me that meant that we were too small and not enough people were reacting to what was going on in the world.

Concluding, I would say Yes, to your question, even if the FUD slows us down for a while.

Well, the high SBD value did indeed make it a bit easier, I paid most of my Smartnode (smartcash) with it. But apart from that I just prefer to keep the SP and power up the steem we are getting now.
This will allow for more growth in my account.

This is also a reason we are running @swisswitness ,

we believe in this blockchain and are investing by blogging and by running the witness (servers do cost money)

I personally like having steem at a lower price, it allows for better accumulation

although the high SBD prices were enjoyable, personally I like the lower prices to give steemit that room to grow

high prices attract more people but then when they are here they realize that it is actually very hard to earn
I have to agree that steem needs to grow a bit more, lets hope it grows sensibly

any chance that you would replace @justinadams who seems to be a dead witness with @swisswitness ( a group of which I am a part?)

A long-term thinker here. I have been investing my own money and powering up ever since I joined Steemit more than a year ago, and I will continue to hodl for as long as necessary. And although I would have liked to see the price of Steem go up, you have a good point that the lower current prices somewhat cleanse the platform.

I didn't think too much about people that have invested cash as well as time. For those that bought while the price was high, this must be a difficult time.

Great points. However, those that came here for the quick bucks when price was high, will come back again when price rises. I also think that next uptrend will be caused by more adoption and therefore new users will come at an exponential rate, meaning there will also be more "get rich quick, post spam" kind of people.

I don't know if steem price causes every bad element to leave as many have figured out and adopted ways to use bots to get paid for spam. And some of them will be happy with whatever they earn. Other point that i can think of, low price means more volume is needed to sustain similar level of earnings, therefore much more spam.

with no offence meant, I do hope that you are wrong! we can only wait and see.

None taken, i was only offering a different perspective. I would prefer your viewpoint becoming a reality.

We're losing the people who want dollars, and keeping the people who want SP.
Fine by me :)

more than fine by me too

I think it is a good thing for those looking long. It is times like these that have been the most beneficial for smaller accounts looking to grow but most only look at price.

have to think of a way to change the mindset of some people then :-)

Great post!

I am super happy to see the low prices as that increases the amount of SP paid out to us. The last few weeks were as good as the few months before that for me. More Steem Power is the ultimate goal.

I always beside you mom, steem ON

Personally I see it as an opportunity to buy more, I might power up a few thousand at some point soon.

However, if I'm thinking this way, there's almost certainly going to be some mega wealthy individuals eyeing up the opportunity to power up hundreds of thousands.

So in terms of equality and posting quality, I doubt very much if the low price alone will improve things in the long term... more of the same in the future I think.

What I can't explain is my completely irrational commitment to the platform: it's probably because it's the only place I can get any reward for posting personal interest material and it is sociologically fascinating to say the least!

now that would be nice, load of people investing :-)

I am hoping to make a purchase myself too soon

I've just been waiting for my flat sale to go through before I pile in, it's been delayed for a few weeks, just as well it turns out! Then again, I was born lucky, things like this always happen to me. Should be going through next week, so if my charmed life is anything to go by, the bottom's just around the corner.

And I can say this much about my way of working out an 'in point' for investing more (i.e. just buy when a fat wad of cash lands in my bank account), it has as much validity as any other self-proclaimed crypto-expert's so called 'analysis'.

No bastards. Everywhere else you get ranting, foaming, rage monkeys.
They don't like it here.

I = better platform. :) lol

Well said, since the drop in Steem and SBD, we have less auto followers when we post. Likely the get rich guys.

The Steemit community need to encourage and support original content, whether it’s blogging, photography or like us automotive video reviews.

Far to many people regurgitate or in some cases plagiarise content they find and expect to profit off other people’s hard work.

If your still posting oc and enjoying it your here for the long haul.

Just our 2 pence.

To the question in your title, my Magic 8-Ball says:

You may rely on it

Hi! I'm a bot, and this answer was posted automatically. Check this post out for more information.

Firmly standing with you, Ma'am. 😎

Many small dolphin steamians despair desperately with the current state of SBD I little whale keeps excited at Steemit and always gets the spirit of the great whales crypto, thanks

when the price sbd or steem cheap, this is a chance we to buy steem and do the power up. And I keep stand with steemit when the price is cheaper and when many other platforms keep coming.

But a lot of people who are really good creators will also leave, I think on the whole the price slump is negative. The main reason you point out for the slump being good is that scammers, spammers will leave because the price is too low to make much money here, but also you say it is a long time investment therefore you expect the price to go back up, wouldn't that bring the scammers-spammers back?

do you really think we could lose a lot of good creators? Personally I don't. If they are really that good, then they also know it takes hard work.

as for the scammers coming back - yes i guess that would happen, but it would give steemit time to develop more and maybe have improved systems in place to combat it

I think it is obvious that people will leave if they are making just cents, even in third world countries that doesn't go that far, so the logical thing is to leave and try to find a place where they can make more money. And with the probability of new platforms similar to Steem they would probably go there to see what happens.

Prices of Steem and SBD are very low. In this situation many opportunists may think to ditch steemit (Every steem based apps) and go somewhere else but the true and dedicated admirers of this platform will never leave this platform. I hope this low price period is the perfect time to judge who really loves this platform and who just see it as an opportunity to earn. I am hopeful that this platform will be the most successful social media platform of this century.

I've started my experience here on Steemit last January,when crypto values were quite high and SBD was around 7 dollars, so payouts were higher and there were lots of newcomers every day. Today I see a huge difference, of course; sometimes I wonder why I stay, because it's not just for the money, it is because I see some good potential and the possibility to create communities and projects inside and outside Steemit itself. I stay for the people, for the projects I am involved in. I am interested in SBD and Steem, I can't deny it, but if at the beginning this interest was almost primary, now it is somehow secondary. I am part of the italian community, for example; that's one of the reasons I stay and I am still involved and excited even if crypto now are going down. I believe this platform can be precious if its contents have a good quality and if everyone shares his knowledge honestly and tries to create involving experiences/challenges/contests/project/etc. It can be a source of money, it will surely enrich you in many other ways as well. This moment, I agree, can be like "natural selection": only the ones really interested in will keep believing in Steemit and will stay here; the others, maybe, will come back as soon as SBD and Steem values will rise again.
You wrote: I believe a low price of STEEM will create a better platform for content discovery. Well, I totally agree! Always look at the bright side!

Thank you for sharing :)

always look on the bright side is so true. That you for your comment. The communities and people on steemit are awesome and is the reason many many people stay, including me :-)

I couldn't agree more that we need people with long-term vision. People don't understand that beta phase is actually still testing phase and how great potential Steemit has for the future. I've watched today Ned explaining new changes that will change whole system ( Oracle technology and cancelling SP, you can see it here

)

I just hope this will keep those get-rich-quickly people on the low, and raise the amount of quality content on the network.

I'm really excited for these oracle-powered SMTs. I've been waiting for something like this since discovering Bitcoin in late 2014.

Will be beautiful in its time master @birdinc.

yes I have watched this video in the past. SMTs and Oracles do set to change things. Im also very excited about the community features. that is so long overdue :-)

Yeah, I've heard also somewhere that every niche is supposed to have its moderator in the future and that could be great plan to try to eliminate shitposting and also to have bigger rewards :)

I'm really torn on this. One the one hand:

And if we weed out some of the crap, then there are more vests in the rewards pool for those working hard.

Absolutely true.

On the other hand, 90% of anything is crap, so if that ratio is constant* then all that's really happening is that we're losing people who want to make an above-minimum wage rate on an article.

  • I won't even get into whether or not a lot of the low-quality content comes from areas where the economy is such that even a few bucks are a major income except to say if that perception is true, then a falling STEEM value actually enriches the crap %.

"I won't even get into whether or not a lot of the low-quality content comes from areas where the economy is such that even a few bucks are a major income except to say if that perception is true, then a falling STEEM value actually enriches the crap %."

valid point, lets hope that it does not enrich the % crap

The best I could think of is to power up Steem. Otherwise, we have to find an alternative solution during this downtrend. The good news is there is another project support us with better rewards such as SteemPress plugin for WordPress.

Hi @paulag nice to see you again, I am 100% that low prices of SBD and steem will reduce the number of short term commitment user, and it will remain with long term consistent user. I don't really care about the prices actually, because my concern is developing my account for really long term commitment. @el-nailul. Just able to check the thing on again...

i agree low prices will aid quality of content and discovery but on their being more vest to go around normally this is the case but due to the amount of whales powering down its reducing vests POS system's rewards are calculated by the total amount staked.

Also with the amount of whales powering down it would be a poor decision to buy into a market when at least 500k Steem will be powered down this week and most likely sold the best time to buy would be after whales sell

What i think is there should be a normal way of upvoting as well, with no price associated. With this way upvotes number can surely increase and people will know that the posts are reaching out.

I'm a little bit concerned because the popularity is of Steemit is goding down

Without some major improvements of UX, I think it will go into oblivion, or it will be the playground of the chosen few.

Another concern is that besides the high value of rewards, even in my country *(where it's possible to double the monthly income), Steemit wasn't able to become popular.

My friends simply chose to stay on FB instead. Not 1, but 10 or 20.

Youtubers never came to dTube and so on...

This does not concern me at all. You see steemit now had all of these other user interfaces that are growing with popularity. Esteem, dlive and so on. So the rating are down for steemit.com but well u elsewhere