Why Are You Looking At The Price Of STEEM Anyway?

This is a serious question.

Why does everyone get up in arms about the price of STEEM? What difference does it make?

People tend to believe that the price of a token reveals something. I am here to tell you that price tells us very little.

The STEEM blockchain is a lot stronger today than it was at the beginning of January even though the price is off more than 80% from the highs. Even with a manual sign up process, we have a lot more members on here today than there were at that time. The number of daily transacting posters is up a large amount since then.

Here is what I see form January. Most of you will recognize this from coinmarketcap.com with a slight adjustment.

Please forgive me, this might not be exactly to scale but you get the point.

Development is taking off. I do not care about FUD, the pricing action, nor what the MSM is saying. On the STEEM blockchain, we are seeing things happening at a rapid pace. The development is what is going to thrust this forward.

Part of that development is the stuff we do not see. The Steemit team is focusing their attention on the back end to ensure that it can handle the traffic. Some seem to have an issue with this. Rule #1 in sales and marketing is under promise/over deliver. Many on here seem to ignore that sentiment. Instead, they jump onto Facebook and Youtube espousing how STEEM will make on rich in 30 days and the price will be $10,000 by next Thursday.

Having a blockchain that can handle all the traffic before it arrives is imperative. The last thing that STEEM needs is a repeat of what is happening to Bitcoin and Ethereum.

Most people on here should ignore the price of STEEM because it means nothing to them. Anyone who is powering up is automatically cast out of the caring about STEEM price club. Powering up means you are here for the long-term. Hence, who cares what the price of STEEM is today when it is a year or two from now that one should focus upon.

There are a few groups of people who are affected by STEEM pricing.

Traders

These people care a great deal about price. Ironically, most of them do not care if it is going up or down, as long as it is going. Traders tend to make money going in either direction. The toughest time for them is when it is going sideways. Range-bound trading is a lot more difficult, and less successful than following a trend.

As long as price is moving, traders are happy. Volatility is their friend since that is what present them with short-term opportunities.

Income Seekers

This is another group that cares about the price of STEEM. Unlike the traders, lower STEEM prices makes things tougher. Anyone who is seeking to get an income off STEEM just took a pay cut. Not only is the price of STEEM down, but also SBD meaning each post nets less. A higher SBD price really helps out those who are living off the STEEM earned.

Buyers

Buy the dips. Obviously, anyone who is looking at entering STEEM, this is a much better point than before. The same holds true for anyone seeking to add to his or her position. Warren Buffett said that pullbacks were the markets version of putting stocks on sale. People love to buy products at 20%-30% off. STEEM is now over 80% off.

Sellers

The only sensible reason for this right now is it one really needed the money. Outside of having one's back against the wall, it is asinine to sell a token that, reference Buffett above, is on sale for 80% off. Even though there might be further downside to STEEM, this is the epitome of buy high, sell low. Nevertheless, if one is looking to sell, price is a concern.

Of all the people I come across on a daily basis, few fit into one of these categories. Probably the biggest, since we have some many from third world nations, is the people using this as an income. Even in the Western nations, there are a few who are using STEEM to supplement their income.

That said, most are hodlers believing in the long-term potential of STEEM. Actually, there are a few who do not see to have confidence in STEEM yet are hodling also...that one is a bit odd but I feel will pay off for them. Anyone hodling does not really need to worry about price. It honestly reflects very little. The market might be never wrong but it does change its mind a lot.

The price of SBD going down hurts yet that is falling back in line with how the system was designed. Whether it goes up again, I cannot say. What I can state is that we were getting paid a premium on all our posts the last few months. I hope all took advantage of it to power up as much as possible. We might get that gift again or the gravy train could be over. Time will tell.

When you adopt this outlook, it is easy to be detached from the pricing action. It is almost comical to see the media try and determine what caused the drop (or the run). Markets are not rational, they never were. Therefore, why do people pay attention to something that is completely insane? Markets are as bi-polar as they come.

Each day I try to bring attention to what is truly taking place on this blockchain or within the cryptocurrency space. Also, by monitoring what is occurring with other technologies, I can get an idea of what type of convergence we are seeing and the timing of it. To me, this is far more valuable than the pricing action over a few weeks or even months.

There is no doubt the crypto world was hit with a huge amount of FUD and, possibly, pricing manipulation. Honestly, with all that is going on and the advancements that were made, prices should be much higher. Alas, they are not. There is no use dwelling upon it. Following pricing action intently makes about as much sense as herding cats. It is equally as frustrating.

A month from now, the price of STEEM might be higher than today, or it might be lower. It is a coin toss which it will be. What I can say is not a coin toss is the development. I am certain there will be more development on the STEEM blockchain at that time than there is today.

And, for the long-term potential, that is all that really matters at this time.

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