Bitcoin / Steem Ratio, Did it Peak Today?
Over the last few weeks the Bitcoin / Steem ratio has gone from ~2800 to ~4150. This is quite a range and presents an opportunity should oscillation across such a large spread begin. I checked the Bitcoin / SBD ratio in my wallet today and found it was over 4550 so I pulled the trigger in an opening salvo to capture a high, with reserves ready to follow the ratio higher if necessary. After the purchase I noticed the ratio fell under 4450 so I have no buyer's remorse at this time. Question is, what does the future hold for this relationship?
Regarding Bitcoin, it has been a harrowing ride from $5000 to $3000 back to $4600. I did not let the communist government of China shake me out because, after all, Bitcoin was anti-government at inception and it is our human right to purchase it, own it and use it. I also didn't let criminals who should be in jail for fraud, like jamie dimon, shake me out by calling Bitcoin a fraud and suggesting Bitcoiners will be jailed. Banksters are not our friends and Bitcoin was created to supplant them. Except for the fear and confusion surrounding the upcoming fork, the fundamentals of Bitcoin are sound. China is ready to get back in, Wall Street is ready to dive in after dipping their toes, the stock market is frothy and ready for a pullback, exposure in venues like CNBC is daily and the IMF is making public statements about it being here to stay.
Regarding Steem, while it is exciting to think a rich investor will come in and drive it to $10, steemit and its peripheral sites would need to work properly first. Then there is the issue of inflation. A few weeks ago there were ~239m Steem and now we're closing in on 243m. So any gains brought abought by investors and enthusiastic newbies would have to overcome that inflation in order for the price of Steem to rise. How many more Steem coins will be created anyway? Is there an eventual cap? If you know please leave a response.
Conclusion. From my evaluation of the two coins above you could infer the ratio will continue to rise, and I'm ready to chase it in increments. But we also understand the cyclical nature of market relationships and the effect unforeseen events may have. If you are a fan of both coins it is a win win situation to own both. Everyone knows the potential Bitcoin has to go to the moon, and how high Steem can go should its market cap someday resemble fb. Times are interesting and it's great to be alive.
What do you all think?
Notes: here are some data points I jotted down.
Date Bitcoin Steem Ratio
9-7-17 4626 1.65 2803
9-16-17 3648 1.13 3228
9-21-17 3668 1.02 3596
9-30-17 4341 1.54 2818
10-8-17 4603 1.12 4109
Bitcoin Welcome
1MVVRuSps34DAcygxLWi9kKkpwUj1hH46w
Steem increase last week was driven by the smt announcement by @ned
And to go higher steem price is we need another follow up of this on going smt to push steem price up
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