In the News: The Strange Dance of Bitcoin and Steem

So, after a really long downturn, it appears that Bitcoin has finally found a bit of strength, and has made it back above the $6,000 mark, for the first time since November 13th, 2018.

Woo-hoo!

And this in spite of some evidently sketchy news about hacking and losses on Binance...

Sunrise... or flower petals?

Meanwhile, our local Steem token seems to be acting like a wilting flower as it sinks below 0.00005 vs. BTC for the first time... ever. Seems like every time Bitcoin rallies, Steem takes a dump. There's perhaps some "logic" to that, if you subscribe to the idea that people pull their money out of Alt Coins to invest in BTC to catch the upswing.

But then when BTC takes a dump for whatever reason... Steem seems to inevitably take a "sympathy dump," usually bigger than the dump taken by BTC.

The "net effect" being that there's just this long slow decline going on.

Hairy Little Leaves

Crying in Their Soup...

I see more and more posts from people who are "crying in their soup" and are ready to give up and turn their back on Steem, and even on the various apps that drive this place.

Oddly enough, it's similar to a dynamic we see in completely unrelated fields of investing.

I mentioned in a comment yesterday that perhaps Steem just isn't a "Glamour" token. We have a working blockchain that's transacting and we have lots of dApps already in place and running.

How... BORING!

I am reminded of "Biotech" stocks some years ago... the stocks of some startup having nothing but "a promise" of some drug that might cure "XYZ ailment" would go from $0.50 to $100+ in a matter of months before vanishing like morning fog before the sun (but not until the founders took their IPO millions and moved to a beach in Puerto Rico) while someone with a pharmaceutical company efficiently producing a drug that already helps millions on a daily basis.... their stock would go from $30 to $15 in the same period.

A tiny purple flower...

Strange as it might seem, we tend to prefer POSSIBLE winners over PROVEN winners.

This is just a hypothesis, of course... I'm not an investment expert, and this is not investment advice. These are just observations.

Seems to me, though, that if you examine the underlying premise here, and the "first mover advantage," something doesn't make sense. And thus, this might actually be a really good time to slowly accumulate Steem while people are not interested and the lower activity levels here is making it (relatively speaking) easier to get.

At some point reality is going to set in and the value investors are likely to start buying here. These are not the wild gamblers or the speculators waiting to gain 10x on their money in a month... but the the people who buy and hold in expectations of long term gain.

Like those "delusional" people who bought Bitcoin eight years ago, and have been through about 200 "Bitcoin is DEAD" cycles, by now.

But then again... I could be just pissing into the wind...

Thanks for reading!

Comments, feedback and other interaction is invited and welcomed! Because — after all — SOCIAL content is about interacting, right? Leave a comment-- share your experiences-- be part of the conversation!

(As usual, all text and images by the author, unless otherwise credited. This is original content, created expressly for Steemit)
Created at 190509 23:08 PST
1010