Steem - Catch 22..!!
#Promo-Steem - Promoting #Steem and the Catch 22 situation we may be facing with Investors
Why #Steem is in a Catch 22 situation
Today, I would like to share with you my opinion and is something that I strongly believe the #Steem Community is now facing.
As we watch the price of #Steem continue to drop, I would like to talk to you today about the Catch 22 situation we may be facing.
This observation has come after +18 months of talking to countless Investors looking to invest in #Steem.
To keep things simple, I have shown x5 elements that most Investors that I meet and talk with are looking at when it comes to investing in #Steem.
These are...
On the Left
Inward Investment
Perceived Value
Value Retention
Growth Potential
Return
On the Right
Development
Maintenance
Spending / Cost
Marketing
Promoting
Left vs. Right - Catch 22
Maintain and lock-in value in #Steem
You can see the dilemma that most Investors are facing when the underlying asset that they are looking to invest is continually dropping.
The flip side of this is to maintain and lock-in value in #Steem in an attempt to slow down and ultimately reverse the valuation of #Steem.
Inflationary Pressure
As well as the x5 elements above, there is also the Inflationary Pressure as time goes on where more #Steem is created and thus diluting the value of each #Steem available.
Sure, this Inflationary Pressure tapers over time, but it's the long duration that is built-in that may give Investors concerns and certainly for those who are taking a shorter view.
There is no denying it
There is absolutely no denying it, the valuation of #Steem appears to continue to drift lower as the Supply / Demand ratio still weighs towards Supply.
How long will this last, is a million dollar question, but until the Demand for #Steem reverses and is greater than the Supply then sadly the price will continue to drop.
It's easy to raise money!
Raising money against an underlying asset is pretty easy and is something that I have been doing for many years.
However, raising money for an underlying asset that is dropping in value is damn near impossible and is something that I have been faced with for the past +12 months.
Shame really
As I mentioned yesterday, it is a shame really because there are some amazing technical minds in the development team that are building some of the best applications in the Industry.
Thanks again for reading.
Stephen
The inflation is scary and 80000 new Steem is printing each day.
Gosh, I hadn't realised that it was such a large amount being printed each day.
Not surprising then that Steem price if falling due to the lack of demand and printing.
At $0.30 that's $24,000 of new cash everyday just to maintain inflation.
At $1.00 it's $80,000 a day.
This is just one issue I am having to address everytime I talk to an Investor.
Stephen
Excellent explanation - many thanks.
Just recently, I read a few articles stating the same concerns - lack of demand for Steem and its price falling.
To listen to the audio version of this article click on the play image.
Brought to you by @tts. If you find it useful please consider upvoting this reply.