The price of steem can go a lot higher, here's why:
And it has nothing to do with steemit.com or steem specifically!
To fully understand why I think that, let me tell you a little about my experience last week trying to set up a crypto account for a friend of mine...
A friend of mine contacted me last week and said he wanted to get into cryptocurrencies. Not necessarily just into steem, but instead buy a well diversified basket of different ones.
The first thing I instructed him to do was set up an account on Coinbase.
Should be simple enough.
Create an account, transfer some dollars in, buy some cryptocurrency.
This is where things got a little tricky...
He was having trouble setting up an account on Coinbase so I told him to try a few other exchanges where he could transfer some money in and buy some coins to get started.
The first one he tried after Coinbase was Gemini, the exchange set up by the Winklevoss twins.
I had read a little about it and it offered a lot of the same things Coinbase offered.
It lets you link a bank account directly and they insure your holdings, two big pluses in the crypto world. Also, it's one of the few exchanges that keeps holdings in cold storage which makes them much less vulnerable to a hack.
The only drawback is that they only operate in 42 states.
Lucky us, we just so happened to live in one of those 8 states where Gemini is not currently licensed.
So, our option to use Gemini? Move to another state...
Considering that was not going to happen, on to the next one we went...
Next we tried CEX.IO.
On the surface it looked like it would be our next best bet, however, upon visiting their page we were met with this:
CEX.IO is currently not accepting new customers, lovely.
Back to the drawing board...
Next up, we would try Kraken.
Again, the exchange looked good on the surface but when we actually tried to sign up it was very difficult.
For one, getting a name and password created and actually creating an account was like pulling teeth. Everything we tried wouldn't be accepted, whether it be our username or our password.
Then finally when it was, we were told we would be receiving an email to confirm our account. Except the email never came!
A few hours went by and we tried again, still no email.
Finally an email showed up, which we tried to use to confirm our account, but when we tried to confirm our account with that temporary password, we were promptly told that the password given to us in the email had expired.
Are you kidding me? The email takes hours to get there and when it finally does the temporary password is already expired?
Aint that a kick in the shorts!
Needless to say, we gave up on that one.
The search continued...
Next up, we took a look at Poloniex and Bittrex.
Which we found out right away that neither offered fiat support. Meaning we couldn't get dollars in or out without also setting up another account on another exchange with fiat capabilities.
All of this was becoming majorly frustrating to say the least.
Next up we tried Bitstamp.
We were able to create an account but soon realized it was based in Europe and was pretty difficult to get dollars into, at least according to our initial impression.
Luckily, right about this time we finally got confirmed by Coinbase for an account.
But our troubles did not end there...
Now that we had an account on Coinbase, it appeared that trying to get money into the Coinbase account was not going to be an easy task either.
For one, they only offered small deposit maximums unless we verified the account. So, we did that.
After verifying some basic information the deposit and withdrawal limits increased slightly, which was helpful.
Next we tried to link our bank account.
The struggle continues...
My friend uses a local bank offered by his work, which of course was not on Coinbase's accepted list of banks to link to your account.
Which means he had no way of transferring dollars into his account from his bank account.
So, here we are again, with an account finally created but no way to get dollars into it, apart from using a credit card and only purchasing a very small amount each week.
Which, using a credit card was not even really a long term viable option anyways because then we would not be able to get his funds out after he got them in as there was no way to link his bank account...
So, we figured the best option for him was to go out and open a new bank acccount with a well known Coinbase accepted bank, and then transfer funds in and out through that.
Yes, you read that right, our best option is for him to go out to a well known bank, open a new checking account and then link that to his Coinbase account in order to get funds in or out. The entire process will take days/weeks depending on which route he decides to go.
What I learned through all of this and how it might affect steem...
People can't get dollars in or out of the crypto markets!
Which is why they aren't going to crash any time soon. The money that is in here currently is just sloshing around from bitcoin to altcoins with no ability or intention to leave the markets.
Also, many in the markets (rightly or wrongly) believe that they don't have to pay taxes on their crypto gains as long as they don't turn it into fiat.
Which means they just trade it back and forth in the crypto markets depending on what the hot coin for the moment is.
Which means that with the crypto market cap currently being around $816 billion and steem only being around $1.6 billion of that, with the right news/momentum, some of those billions could easily swing towards steem and propel it many multiples of where it is currently trading.
Basically is what I am saying is that given the current crypto dynamics, steem (and many other coins) could easily trade many multiples of what most might consider their actual worth. Though that in itself is a hugely debatable topic.
As long as money keeps sloshing back and forth like this, we could see steem hit some ridiculously high levels.
Just need some momentum. ;)
Also what happens when these things become easier for people to get money into them? Just something to think about...
Stay informed my friends.
Image Sources:
https://www.investopedia.com/tech/bitcoin-price-steadies-crypto-market-cap-hits-alltime-high/
Follow me: @jrcornel
Wow, that is such a headache just to get some crypto exposure. It is hard to get money out, so it makes sense that a mass run out of cryptos would take some time and slow down the supply side, causing less of a slide.
see me at yankee-statman...MUST own silver/gold NOW!!
Thanks for your writing, I was always afraid the price of steem will drop very soon. As they are pumped by KR exchange but now KR government is banning btc.
But how about SBD?
Very nice, thanks for sharing.
I believe steem price should be 100 USD in 1 y from now. Why because of the limited supply and the low Market capitalization at the present time, Steemit is the only crypto that solves all the problems in one platform. Smart contracts via bots, media, social, video, audio, decentralized voting, Leaders with influence like ned . All of this suggests that Steem is the best and is not under the radar of any crypto trader. as the price fluctuation is very low. That is the only reason steem is so low. To stable to be profitable for short-term position.
I agree with all of the above, and I also agree that it could hit $100 within the next year, but it could be for none of those reasons mentioned. :) As I mentioned, it could be just because it's the hot trade at the moment and people pile in.
The high demand to power up should be a driving factor in the price increase.
some people will power down if the price is to big they will like cars and houses instead of power. Every person that knows my steam power is tealing me to power down because i made x8 times the money i invested and i refuse and explain that if i lose all i'm cool with the decizion .
STEEM will never hit zero, so you don't have to worry about that.
STEEMIT will reach 40$ then 400$ in 2018.
I think you mean STEEM
I think that's the best thing to do, since in all probability Steem is an even better investment in the longer term extending beyond 2018.
Best decision!
In fact I have touched upon it in my recent post, Ten Ways You Can Use Steem When It Hits $10 , after I observed that the Steem price could be here to stay.
yes I agree with that. People are so concerned about making money rather making good contents.
Which is why fiat could be the one to implode.
you heard it here...silver..(divirsify) see Yankee-statman.
Considering the fact that there are projects out there with market caps in the billions that have just a whitepaper and no working network, I'd say you're right about Steem being undervalued.
that is what i wanted to say, but steem i very bad just because of the stable price, and is not profitable for day trading. Steem is a long-term investment. IS like buying a house not choing a holiday destination. Is more like a wife not a one night girl.
Yes - Steem is ripe for an increase if the overall market continues to grow.
i have only bch (bitcoin cash) to spare for buying more steem, i love bch as the low transactions fee :)
valid points on multiple fronts, but i agree with @jrcornel, could be other reasons for driving such a surge in price. and even if it were, there has to be a wide adoption of STEEM for it to hit 100. Ripple for example has a value proposition beyond its XRP status. it can potentially replace SWIFT, which is a banking system. STEEM would surge if it was viewed as a viable substitute to Facebook.
steem will become a bank with a plastic card that is accepted everywhere very soon, that will drive the price x5 times.
Bank card?
Is this statement based on some hard facts? Or on you last night dreams?
until present time , i predicted iota will go up, omg , ripple, civic, and others , the point is like this nxt will get big emc2 and others
The point is that predictions are made as the market changes at this point i can just tell you that there is a team that will build this technology and it will be legal .
lol
It's accepted via the payment gateway that I use, Living Room of Satoshi. Honestly wouldn't be surprised if someone does a plastic card for it, depending on the popularity of the site.
That while is possible, needs a bunch of extra features, like better content discovery and chat messages.
video message chats and file share is what is needed, for this we need server network around the world first will be steemit bank and projects will rise
But if something needs dedicated servers, then I'd argue if it's really decentralized?
dPoS while a decent solution is already setting up some centralization. We shouldn't add more centralization to the Steem ecosystem.
Absolutely agree. We shouldn't add more centralisation.
However, now that WebRTC is widely supported by browsers I believe videochat can be done without the need for centralised high-bandwidth servers.
For decentralised file-storage there are also some interesting projects live already. IPFS (which i think is used by d.tube) or blockchain based like Sia or Burst.
If you ask me, chat messages shouldn't necessarily be stored. It can be session-only or DOM-only. It has its drawbacks UX-wise but I'd consider it safer than permanent chat recording like in Facebook.
I hope you are right! I follow your logic though.
I totally agree with you, Steem price can easily reach $15 very soon.
Yes totally agree. I live in one of those US states, Hawaii ... which the dumb state of Hawaii doesn't support cryptocurrency. Loss for them, as they lose out on tax dollars anyways.
Agree too that the market won't crash so soon because it's hard for people to move from the cryptocurrencies to/from fiat anyways. Besides, we should make it so that cryptocurrencies stay within the same sphere.
Great read! Follow me at @corpdetoxbliss
and I believe the momentum is in 2018 !
I've participated in the Bitcoin space since it was $100. No I am not rich because I wanted to learn the technology not just invest in it (big mistakes all around). However I agree that steem gives people to invest in the space ... this time with brain equity not just with dollars. While I think some people have posted NSFW videos, I believe that posts talking about personal experiences (@sweetsssj) have been most beneficial.
Personally while I might repost a video from youtube (not my own content), I try to related it to my own personal experience or to draw people's' attention to it if I feel it needs to be repeated. My recent post on How the USA is killing the people of the Marshall Island is an example of that.