STEEM price falling by 8% per day, barely remains in the top 100
Yesterday I noted STEEM had fallen under the 0.2 USD level, leaving it down 97.7% from its all-time high set in early 2018.
I asked if it was time to sell for whatever value could be had, or time to buy as much STEEM as possible? The answer came quickly - we should have sold yesterday!
That's because the price just fell another 8.5%, to below 0.183 USD. It continues to tumble against the other cryptocurrencies, nearly dropping off the top 100 list on cryptocap.com:
STEEM is traded for mostly in BTC, meaning most people who buy and sell STEEM don't do so from fiat currency accounts, they do so on crypto exchanges, where they use Bitcoin (predominantly). That's why it's more useful to look at STEEM charts priced in BTC rather than in USD.
But here's a price chart for STEEM from day 1, measured in USD:
This shows that it has only been cheaper to buy STEEM using USD once - the last few months of 2016 and the first few months of 2017. Before and since, the price has always been higher than it is today.
Priced in BTC, the more accurate measure, things are even more dismal:
In a constantly-falling market, incentive to hold the currency is very low. If the currency loses 5-10% every day (which can happen infinite numbers of times, since more decimal places can always be added), who wants to store their value in that currency? The reasonable reaction is to sell, either to stay out for good, or to buy back in later at a lower price. This causes supply to increase, as demand is falling, causing a further price crash. This downward spiral can collapse currencies, stocks, and other investments.
This topic is a little depressing but I think it bears covering. Best to be aware of reality than to live in comfortable delusion. These are the facts about the currency we're investing in and working for.
DRutter
It doesn't seem like it can keep crashing forever, unless the whole site disappears?
Without doubt, it IS sad to see these long declines... I don't harbor much in the way of delusions, but I DO keep in mind that the Steem blockchain remains one of the most functional, fastest and lowest cost (transactions) out there... so the "underlying asset" remains valid. And as long as that's the case, I'm not going to bail out... at some point "value" investors are going to step in and parhaps the whole "major players" landscape will change.
=^..^=
I hear that. The blog works, there's a few good people still here, etc. But I think it takes more than that to keep a website/blockchain healthy. Other sites and chains will be able to copy or improve upon the blog we have here, and people come and go. There's not much here to grasp onto anymore, in terms of underlying asset. 3 years ago this place was groundbreaking. Now it's a broken outdated collapsing currency and community, sadly.
But if there's good times yet to come, then yes, perhaps we'll see a price recovery after the current collapse? If so, maybe today's prices are a bargain, and we're the smart ones to be buying/holding/earning it right now.
heres an upvote, dont wory, fyrstikken will buy steem at 7 cents when he got in in march 2017 where he got in, so no oene else can get in at that entyr level
and remember, even fi it DOES go even farther where he cant even hodl it back, it will not be like that for longs teem is too valuable and SOMEONE will be theer lien dup ready to take over anbd become teh new steemit inc
Great comment, here's an upvote back, twice as big as yours... you're very welcome : )
I agree with your sentiment if you are looking at steem like a stock. STEEM is akin to a dividend paying asset, and the cost basis keeps going down. The problem is that if you are looking at STEEM as something to power up and as an engine of value creation, you should be laddering down your purchases. This is especially true if you anticipate the price recovering even to near term highs and you are regularly participating here. The more you have in the interim, the more you will get back in rewards.
I'm looking forward to see what happens to my curation rewards when HF21 comes. The fact I have been dollar cost averaging into STEEM means I will just get more of them.
Sounds like you are basing all that on the assumption that STEEM will in the future become more valuable than it is today. IMO that's becoming a bigger and bigger (and sillier) assumption to make. Not everything that goes down must come back up again. Currencies can die, even crypto currencies. I tried to catch this falling knife 2 years ago with $5000 (0.2 BTC). Dollar cost averaging only makes sense when a recovery is coming.
BTW just curious what you think my "sentiment" is, since you mentioned it. (I'm not entirely sure what my sentiment is, so it's interesting that you know!)
Your sentiment is bearish, and you have just clarified it's long term bearish and you doubt it will recover. So why are you still here? If you don't think it will recover, that means this platform will fail. If you believe that it will, then your time would be better spent in something with a future. It amazes me to see how many people share this sentiment, yet are still around participating. That tells me that there's a good chance of recovery because they are still here, but are in a state of despair.
In either case this is a speculative endeavor. I see the builders keep building, and that keeps me long term bullish. If that activity stopped, I'd change my outlook, but from what I can tell it's accelerating. I'm just surprised how many people hang out here so convinced of it's impending failure, and I feel sorry for them that they value their own time so little that they have nothing better to do than ride down a sinking ship.
Sure is disheartening to watch the continual drop in steems price.
Posted using Partiko Android
If there's a turnaround coming, it will surely be spectacular!
(.... if..)
0.165 USD today, down another 10% since I wrote this post a few days ago. : (
If STEEM was 50 times more valuable, it would almost be the price it was at the top (early 2018). It has fallen to less than 2% of its value in 18 months.
Steem is fallimg more than other coins because the devs at steem inc keep selling. They get paid in steem and sell to live their expensive lifestyles. Other projects devs are doing the opposite right now.
Well it's hard to have any faith in a currency or blockchain if the original users and insiders are bailing out!
When steem incs holdings shrinks enough than the sell pressure will stop.