RE: Best Cryptocurrency to Invest in? Analyzing Steem from an Investment Point of View and Sharing The Multiple Profitable Opportunities Presented by Steem Blockchain
Cool... thanks for the insights! I haven't been on Steemit for long, but you pretty much hit the nail on the head for the majority of the reasons I chose Steem & Steemit.
However, I wonder if you could give me your take on something:
There are some whales here earning serious money (all good... it happens in the real world too), but the manner in which they are doing it is slightly questionable (according to some/the majority). Now at the risk of starting up "THAT" conversation that's already being covered and addressed by 100s of other posts, let's assume it's perfectly fine what they are doing (it's all 100% within the rules/boundaries of Steem/Steemit anyway).
My question though is this: If just a handful of people can flood the market with SBD/STEEM cashouts, isn't that gonna push the price down? It looks to me a case of "1% controlling 99% of the wealth" (and hence the market), and if I was a serious investor (I have invested fiat into STEEM, but at a level what these guys are generating from just 2 posts), I would see that as a serious risk... not so?
i.e. in short: What is preventing 5 or 10 or even 50 people just dumping and crashing the whole system?
There is a serious bebate going on about if in the community. Not only a debate but also a battle to put an end to this because what these few accounts have been doing is too dangerous for other investors. I have taken a $30 flag from the person concerned for speaking up.
I think the community has responded to the stupidity of one person, or a few of them, and more people will join. I agree with you that too much power within a few hands is never good for any market or business. Let's see. Luckily, there's a lot to look forward to.
No profits comes without risk. Big profits need big risk. So far i feel comfortable within steem system . With more time passing more people (and whales too) will open their eyes. And those raping the pool will loose their battles. I trust in power of masses
Me too. I trust in the power of free market to make its way towards porgress. We are a community here and that is the strength of Steem.
hmmmmmm, that doesn't fill me with too much confidence... but yeah, I too remain cautiously optimistic.
It's a new system and has a lot of room to improve. There's so much to handle at the moment. I am sure things will look far better months from now.
There have been quite a few chances for anyone that is looking to have a huge cash out to sell their coins at this point. There will always be people looking to exit the market, but if there is sufficient value for new investors, then there should also be new demand.
Well... aren't they maybe just that greedy that they're hoping for it to go higher (people were hodling, even buying more, BTC at near $20K)? They clearly are greedy... exploiting the system to the max with the max posts/self-upvotes per day, #99 upvotes on friends' posts and a variety of other exploits to extract SBD/STEEM... and there's more and more people doing it. For now, while I'm sure it does have an effect on pushing the price down, it's not catastrophic... but what happens when we have 50 large whales doing the same?
Again, I'm not judging the "greed"... Technically it's 100% within the rules of the game. So if I weren't worried it's harming the system it would almost be admirable.
I'm just questioning my putting all this effort (and investing fiat into bots and campaigns/systems etc.) on a very vulnerable platform.
i.e. Where is this "if there is sufficient value for new investors" coming from? Would serious (new) investors only see this as nothing but a cash cow for a few and they are too late to join the party, and therefore step away.
I'm no pro in traditional markets, let alone crypto markets... so I'm legitimately curious about how all this might work, and where the value lies for potential investors. Maybe I'm looking for a reason to convince/reassure myself :-)
It should be assumed that all of the ‘rewards’ are going to be cashed out - whether it is from “whales” rewarding themselves, or minnows collecting their rewards. From an investment/price perspective, the main item of concern is that the demand is keeping up with the supply from the newly created tokens (inflation). If you compute the amount of daily rewards that are generated, and compare this with the daily volume of the tokens traded - you will see whether it should be of concern.
There are users abusing the rewards pool. Sure. That has been happening since the very beginning in various forms and will probably always continue. If you can’t see the value in the platform despite that issue, then I am not going to try and convince you..
Oh no... the value is definitely there... and very evident. I'm just worried that it might be short-lived. i.e. It's going to take me a very long time to get anywhere near the point I'm able to start actually cashing out, and I'm just concerned that by the time that happens the house of cards has collapsed.
NB: I'm not saying Steemit IS a house of cards, literally trying to read up, and ask more veteran users, why it isn't one.
P.S. The rewards cashed vs volume traded is a great example, and I'll go investigate that a bit more.
Anyway... Thanks for taking the time to respond with detailed/informative answers... You've given me some great new homework to go do.
In my opinion, the Steem Power system helps lend some stability to price. Most large accounts are invested in SP for all the reasons posted here, meaning any dumping is somewhat controlled by being spread over several months. More importantly though, large stakeholders selling is actually what most of us want, and see as beneficial to the long term health of the platform. That divestiture is the main path toward broader and more equitable distribution.
Ah... good point! The selling off by large stakeholders does have a silver lining: preventing them from becoming even more powerful and controlling (and thus making stock available to new investors). However is the insane rate at which they are generating and cashing out new rewards not bad for the system... i.e. just flooding the market with stock and ultimately pushing the price down?
The daily trading volume of STEEM and SBD is a lot higher than the new rewards that are being generated each day.
Ah! < insert lighbulb icon here > ;-)
I think this is a systemic risk, but I believe more than 40% of Steem is controlled by Steemit Inc which ideally should have the best interests of this platform in mind. It's just like the stock market, in any company, the promoters hold a huge amount of shares, followed by some major minority shareholders. If any of these guys dump their stock, the price goes downhill. This is a market risk one has to take.
OK, but is the constant "dumping of new stock" (i.e. generating and claiming rewards) not just going to get worse as more and more whales jump onto the bandwagon? ... and the problem is that there is no reason for them NOT to want to do so.
Well, u have to stay invested if you want to remain a whale, which should ideally increase Steem price, so that's a positive