Powering down - the reason for STEEM price crash ?
According to http://steemwhales.com/ , of the 25 top whales, 13 are currently powering down. That's a huge amount of STEEM that could possibly be released into the market every week !
Now don't get me wrong, I know that most of these people invested in STEEM in its infancy and would like their money back and that's ok, but the number of STEEM getting into the market is way too high, if the supply exceeds demand by this much, that could mean STEEM price will go into nothingness.
We wouldn't want that, would we ?
Please, everyone that is powering down, check if you really need those huge amounts of money every week. You could possibly be destroying one of the most original ideas of this decade.
If you do power down...
Can you at least not dump huge amounts into the system at once, at extremely low prices ?
The sad part
This process is probably unstoppable, there is just too much STEEM being produced each week, the process can be slowed down by introducing STEEM to new exchanges and by pledging to not power down, but nobody can control over 50 000 people and control is not a good thing either....
Let's figure something out
Now now, don't be sad. Steemit is made out of creative and skilled people like you. I'm sure there is something that can be done !
Please share, upvote and reply - I'd love to hear your opinions ! Check out my other posts and don't forget to Follow @lorddominik007
POWER DOWN isn't bad at all
Sure they do - but this said this doesn't mean they harm the ecosystem .. as they starting re-distributing them .. so at the end of the day the distribution is more fair and whales become less influence able. Also me for example selling STEEM and if price is decreasing i'm buying back :) Just said - may just try to consider this into your analysis next time.
Happy Steeming!
Alright, that's interesting. Buying it back is nice and all, but if you buy back just to sell later again, you are not really helping anything. We need people to buy and hold it, so the supply decreases.
Also some people buy STEEM on exchanges and don't even know about Steemit, so whale influence is unchanged. If it's not bad then why is STEEM price in free fall mode right now , you could say it's a correction, but if the supply wasn't enormous, the correction wouldn't happen.
We need a way to either decrease the supply massively or increase the demand.
Some smart people might try to get STEEM on new exchanges ?
@summon got the right idea.
It's economics, Steem is only a baby right now. If development continue as it has i am certain we will see a great rise and plenty of more users.
And @lorddominik007 Where there are buyers there are sellers. Some uses steem as a speculative currency and are in to short term trading to make a quick buck or two. Others hold it, increases their steam power and gain influence. I don't have much steem but whatever i earn i use to power up, all about the long run. We can only imagine the great things that awaits us.
Yes, but right now there are four sellers for 1 buyer and that's being generous. While you may be holding it, people like @berniesanders and lots of other whales are currently powering down.
Chill.
Balance will restore itself...
One way or another.
Well yeah, let's hope the way'll be good from STEEM holders lol.
In the long term, I think so.
In the short term... tears. Lots of tears.
Well I have been asking in a few places to see if it were possible somehow to power down just a part of my Steem Power, as it seems when you do decide to power down you need to do it completely. Is it not possible just to decide to power down a part of your Steem power while keeping your original purchase of Steem Power made when you came in intact ? I,d really appreciate if somebody out there could give me an answer to this .Thanks for your support ! ; - )
I think it's possible to power down for a while and then stop, but I'm not completely sure about that, so you should check that out for yourself. :)
yes thankyou very much for this reply as it confirms what i suspect to be true too ! https://steemit.com/steem/@mctiller/the-power-of-powering-down-what-i-learned-after-powering-down-for-two-weeks ............................ it would be great if indeed that were possible eh? Like a boiler, as you draw of pressure you see your Steem level slowly go down to the point that you decide to restart, the side product of this action being visible in the bucket beneath your boiler of SBD dollars ! I think this should be possible if it is not as then investors would be less concerned about being trapped in a system for two years without having any visible benefits financially ! But this controllable powering down would also encourage users to maintain the highest Steem Power possible for them, so maintaining their investment for the greater good of Steemit and its community as a whole.
I think this is just some natural profit taking not so much do to oversupply, but because of the huge I total increase in price.from .29 to 4.50 so even at 1.5 there is still a huge gain from the lows. Membership growth is still exploding and this is going to create a new demand .
IMO the price of Steem is too high. I hesitated to buy some at 0,30 and a short time after I was staring at the price beeing more than 3.
Sorry to hear that. I got in at the 3 $ mark and bought some, now it's at half that lol.
Membership growth might restore demand, but if we get a bunch of freeloaders that start doing great articles and getting tons of STEEM for it, then sell that STEEM for a quick buck, we could be in massive trouble.
How is the person a freeloader if they are producing great articles?
Yeah I know freeloader is a derogatory term, it was just the first thing that came in my mind.
I'm just saying that people who just come and take a bunch of STEEM and sell it in the market for an undervalued price aren't really helping Steemit to grow at all.
This is not unexpected and I think will rise again as the community grows and people understand the benefit of powering up.
Membership growth might restore demand, but if we get a bunch of freeloaders that start doing great articles and getting tons of STEEM for it, then sell that STEEM for a quick buck, we could be in massive trouble.
I have hope
Good for you :)
159k for sale at poloniex. Thats nothing.
Yeah, but only 36k of demand.
@lorddominik007 It seems to me you have very little understanding of how the STEEM economic system is designed to work.
I would suggest you read the whitepaper to grasp a better understanding of this.
STEEM is by design not meant to be a tool of speculation. I know this runs contrary to most altcoins that seem to exist purely for that purpose.
A low STEEM price is actually good. It allows faster redistribution and makes it easier for new users to power up.
If you truly understand this then you should not be upset about people powering down.
The more people who power down the better it is for Steemit and the STEEM ecosystem.
If you are purely interested in making money on pumps and dumps - move on.
There are plenty of other cryptocurrencies that would suit you more and allow you to make money on day trading.
Haha wow, that's an amazing explanation. I'm just being bitter because I bought STEEM for a lot and now it's low haha. I like to look at everything from the financial point of view - low price= the end of the world.
Well thanks for that lol :O Wouldn't cheap powering up have low value though ?
No. Read the whitepaper. Voting power depends on how much SP you have. Cheaper Steem means it is cheaper to power up. It also means more SP is earned from posts and can be purchased for each SBD.
So if you vote for someone they won't get less money even if STEEM is lower in price ?
No they get the same amount because it is earned in SBD which is pegged to the US dollar.
Oh ok. Thanks for the clarification :)
No problem please read the whitepaper though. It does make a lot more sense after that.
Mmm cheap steem.
Haha pack up !
I upvote U