We're Going to Need A Lot More Powerups
The chart above is from @penguinpablo's daily reports. It shows how much Steem has been powered up and powered down each day. It also shows the sum. As you can see, in recent days Steemians have been powering up like mad!
Unfortunately, to have any real impact on supply (which as basic economics tells us, affects price), we're going to need a lot more powering up. A heck of a lot more.
This chart by @socky is that of liquid and total supply of Steem (note that the axes don't start from 0, you can find that chart on his post too). With increased SBD conversions at a low Steem price, total supply is increasing faster than normal. Also, the recent power ups are only a blip compared to the overall trend of increasing liquid supply. While Steem inflation is supposed to happen at 8.5% per year at the current rate, liquid Steem can inflate and deflate more dynamically due to power ups and power downs. You can see in this chart that Liquid Steem has increased by over 10% in 7-8 months.
Further, SBD conversions actually make total Steem inflation much less predictable than the algorithm would suggest. Some of the Steem created by the algorithm is 'virtual steem' hidden behind SBD. When the SBD conversions happen, that virtual Steem becomes real Steem but at a rate determined by the price feed. 1 virtual Steem created in January can potentially become 10 real Steem in November. This is the reason for the sudden uptick in total Steem at the end of the graph.
Conclusion
In order to combat the increasing supply which is happening at a faster rate than normal, we will need to see a lot more power ups, or we will need to see current levels sustained for quite a while. Otherwise we will likely to see faster than normal supply increases exacerbate the problem of the falling price in this bear market.
I don't see logic behind not powering up right now. :)
We have some interesting times ahead of us, and it is nice to see that people are powering up - but I think investors do it... and people who already have lets say big accounts - early steem adopters. Which is great again, more people are becoming influencers. :)
I can't wait what the steem will look like in few months and how it develops with various communities looking forward.
Cheers,
Svemirac!
This has been a concern of mine for quite sometime and like you say, it is a simple supply/demand economic principle.
One of the things that I think may well have a huge impact, is Christmas.
At the end of the day, there are a lot of retail crypto investors that are speculating on a short term basis and these are the ones that may need to sell out to pay for Christmas.
The biggest concern though that I really have is that Steem is slipping down the leader board and could soon pass the other-side of the Top 50.
When I first joined, it was Ranked No. 7..!!
Shame really, because it's a great idea.
Stephen
Yes steem's relative position in CoinMarketCap is a more important indicator than price at present.
I think it has been as high as #25 while I have been on board. I never realised it had been as high as #7. Up that way is where it deserves to be.
Stephen, would you like to join in the second UK Virtual Meetup on Thursday, 8pm - 11pm?
MSP Waves radio show host.
Co-ordinator of SteemClub-UK.
Editor of the weekly listing of steem radio shows, podcasts & open space broadcast.
Founder of the A Dollar A Day charitable giving project.
When I joined it was #3. Above everything except Bitcoin and Ethereum.
This is exactly the point I was trying to get across and surely must be setting off alarm bells in the #Steem Community now.
Personally, I am not bothered what price the Market puts on the value of the #Steem Blockchain whether it is $20 million or $20 billion, but I am bothered where the Market ranks the Blockchain.
For me, this is the worrying part.
Stephen
😮
I´m powering up as much as i can. Excelent community!
I guess if there is a support system from large accounts supporting people who power up what they get from posting. I think this will help.
It will take more than that. Powering up post rewards will only help to reduce the rate of increase. Right now we really need to see liquid supply go down.
Oh, OK. I see.
It is evident that at this point everyone is a major contributor to the growth of this community with their own piece of cake - Steem Power. We can only ensure and encourage a lot more of people to understand the dynamics behind Powering Up STEEM. Thank you for this Demo!
Sadly, I won't be helping the cause at present. We'll see though, LinkedIN profile updated :)
this is the time to bet for steem
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STOPDear @demotruk
This is really valuable tool. I've never seen it before. Thank you for sharing.
My biggest concern right now is that Steemit Inc will be flooding market with cheap STEEM to be able to survive.
Yours
Piotr