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RE: Is this why the price of STEEM is struggling? STEEM Withdrawls 2017
Another excellent analysis. I think we have to find out what happened in May... just look at this chart:
light blue is SBD, green is US-$ and gold is Bitcoin
Here is Bitcoin alone for the same period:
As you can see, it was May '17, when the big surge of Bitcoin from 1,000$ to 10,000$ began.
My hunch is that this has something to do with two things:
- The interest rates by the FED not too long before that date. I have shown before that a hike in interest rates leads to a higher volatility for crypto currencies while the volatility for classic assets becomes lower - although I don't know what the causality could be.
- The price for Steem Dollars might be fixed secretly to keep it down. I could imagine that a couple of whales (maybe @ned personally?) do that to keep the price at relative parity to the US-$ to keep it from becoming a speculation object that could kill Steemit as a Social Media platform. One way to do that is to create a lot of accounts and let the $$$ float between them in and out of the system.
Maybe a closer look at the newly created accounts that make a lot of withdrawals could help. If they are just set-ups, they won't have too many articles and comments on their account.
I should point out: This is just wild speculation;-)
Observed this graph today too.
Wha knows how SBD mass could triple in a mere month?
I thought that the price of SBD was partly controlled by the witnesses to keep it at 1:1 with the us$?
Really? Can you give me a source for that and can I refer to you when I ask around if this is true?
I got that impression from this
https://steemit.com/witness-category/@sc-steemit/steem-dollars-below-usd0-85-increase-in-apr-requested-to-all-witnesses-voters
Here's a simpler explanation, bots are harvesting the carcass of the Steemit rewards pool and transferring the bulk of it out when it is aggregated.
Its a parasitic arrangement that ends up with the value of Steem continuing to be depressed due to the gaming of the system.
You mean like Bitcoin is doing every day with their miners?
Your statement makes zero sense.
Bitcoin "miners" secure the network and process transactions.
Bots on steemit self-vote and vote for other bot-owned accounts, shunting the reward pool to their aggregation nodes. This also reduces the amount available for those actually producing content for the platform.
So your analogy is deeply flawed.
How do you explain the date when it apparently began?
Easy, the incentive to game returns intensified as cryptocurrencies rallied.
You can trade Steem for other assets, which were rising much faster than Steem ever did.
Ok.. my interpretation is more that the price went up like all the others but then something kicked in and the price went down again. But with the given information, both theories seem valid.