The big question in they crypto world is is cryptocurrency dead? The naysayers are arguing that the collapse of Bitcoin, which is driving the altcoins down into oblivion, will destroy the technology platforms based on the cryptos. STEEM was over $6.00 at one point and is now flirting with a $1.00 level. People are saying this is going to kill the Steemit platform. We are going to argue why this will not happen (unless we test or drop below the $0.25 level, which we will explain later).

Flush out of weak hands - Content should improve

The key to the success of any content platform is the content. The weak hands are only in it for the money. Especially the quick money. Once that isn't there there is no motivation for them to stay in. Thus, the rubbish content the weak hands post, and there endless begging for upvotes, is disappearing.

Altcoin crash mean less ICOs - means lid on new competition

The altcoin, and ICO, crash has put a lid on a number of projects. Even if the projects go forward there is no one talking about them. This environment has killed all the talk, and excitement, of content networks that were supposed to be the Steemit killers, such as the Narrative Network. This will give Steemit even more time to build, and improve, the platform and thus increasing barriers to entry.

Active users remain stable

The number of active users per day is still above 50,000. Granted this is not a big number but the key is that it is remaining stable during this bloodbath. (Check out @penguinpablo for daily Steemit stats). The problem is that the number of new users is low. I'm not sure why 3/26/18 had a huge number of new accounts.

Whales continue to post great information

Users like @brandonfrye continue to be active and post great content and teach you how to use the platform without putting in money. Yes, they are making money from their content, but that is one of the benefits of using the Steemit platform. Their advice does not necessarily correlate to having to buy STEEM tokens and thus the price does not impact their strategy.

Problems

The problem that STEEM could bring to Steemit is if the support at $1.00 breaks and STEEM plummets to $0.25. If this happens one of two things will have probably occurred and they are that Bitcoin hits around $1500, or problems with the platform occur, or come true. The main platform problems are voiced by the Steemit critics such as Tone Vays, who claim that Steemit is a scam, and a ponzi scheme.

We don't believe that Steemit is a scam like Bitconnect. We started on Steemit with nothing, and kept writing and posting, and added STEEM from selling some of our altcoins. We understand that the whales can control the content, but that is the same for any content network. A ponzi scheme takes new money to pay the people who came before you. We don't see how this can be true as you basically start, and can continue to use Steemit, with no investment.

Summary

We believe that Steemit's survival is based on the quality of the content, and the improvement of the platform. As long as STEEM doesn't crash to the $0.25 level its drop to the $1.00 should not have a big impact on the platform.

Please let us know what you think in the comments below.