Why Has Steem Fought Off the Current Crypto Plunge?
In the last week Bitcoin has dropped around 15% in value, as of now it's price is trying to push over the $8k mark but can't quite do it. Clearly the Coronavirus is having an impact on everything, although it's affecting the traditional markets more detrimentally than crypto. As you'd expect many of the altcoins that move tightly with Bitcoin have also dropped in value.
What is very striking though is the manner in which Steem appears to be fighting off this slowdown. In fact it has actually increased in value slightly. Despite Steem's consistently lower value due to domestic platform issues during the past 12 months and of course the bull market it seems to now be seizing a moment. Why? Steem tends to move relatively tightly with Bitcoin. However, we are not seeing that usual trend in this shitstorm. There could be a number of factors of course which explain this. However, it might just be that the Justin Sun and Tron drama that has unfolded in the community these past ten days has not been so damaging. In fact it might have provoked more interest in Steem, which has helped to ensure the price of Steem is stronger. The old maxim that all publicity is good publicity springs to mind.
Like many of us I still have concerns about what is going on and naturally I worry that all the drama will impact negatively on Steemit and the price of Steem. But Steem is weathering the storm. Whatever the reason for the robust performance of Steem it's a joy to observe. At the time of writing this post Steem has now hit $0.22, up another 6%. If any of you guys have other ideas that might explain Steem's strong performance feel free to comment.
I think it's facile to ignore that Sun is buying Steem to increase his control of governance, and Steem is such a small market that one whale on a buying spree affects the price to a great degree.
Sadly, I don't see current price as reflective of the long term value of Steem. Far more important is it's ability to resist centralization, and this is very much in question today, since we're essentially given a choice between the legacy oligarchy, and a new overlord.
I'm not particularly bullish on Steem price, despite it's present bouying, which I see as entirely an artifact of the struggle for control of governance that depends on stake.
Thanks!
Yes there's quite an epic battle within the Steem community that's playing out for sure. I think it's good to remember that Justin Sun's attempt at a hostile takeover failed this time, and now we've entered a standoff period. Steem isn't as small a market as I thought actually, I guess it depends what you're comparing it to. It's a sizeable market but I fully acknowledge that a few players, even as you say one whale, can have a significant effect on the Steem market if they decide to. But haven't we seen this type of activity within the traditional markets, a small market emerging for one type of asset then bigger players coming in to mould it into something that will make them more money?
I couldn't agree more with you as regards decentralised v centralised. It would be an absolute disaster should the Steem blockchain ever suffer from central control, and I know this has been an ongoing debate on this platform as to whether Steemit is a truly decentralised chain but if Justin Sun had got his way last week then there could have been no conceivable way that Steemit could be decentralised with that level of central control. This is why the battle for the soul of Steem is so important, and I have been pleasantly surprised by the community's ability to unite and repel the invaders. I hope when the next battle comes the response is equally robust.
If we really are due an altcoin season then I'm bullish about Steem.
This is kind of what I am worrying about - Sun or his friends buying up Steem to take over the market. I sure hope this isn't the case!
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