Which Crypto To Invest In - Part 3 : Steem

This is the third episode to come from the series« Which Crypto to Invest In » and in it I will treat about the two behaviours that we are likely to see soon, the increasing speed media coverage and its implications on Steem, the Chinese influence and how it could help to pump Steem price, BTC involvement, the main reasons people would be seducted by Steem and finally my conclusion.

The 4th July will be the American Independance Day and also the day where two different behaviours will be at work and which implicates different consequences. People will have choice between cashing out or Power Up.

Two scenarii, which one will weigh more ?

Knowing that each of us is different, in fact we haven’t the same goals neither the same financial situations, there will necessarily be a mix of people cashing out and others reinvesting in Steem Power ( SP ).
The question is which one of these two scenarii will have the most weight ?
By cashing out, the user will only receive 50 % of his reward in Steem Dollars ( SD ) and knowing that not much people have earned a lot of money, he will more likely interested to reinvest his SD in Power Up in order to qualify for a better pay on the long term. If people prefer to power up then the price of Steem would swell substantially.

Media Coverage

Furthermore, the payouts will influence positively the price of Steem as some will surely cash out and this will be the proof that Steemit is not a scam or anything like this. After that, we will certainly hear of the « Social Media that rewards very generously its users ». When the buzz will happen, you will need to be prepared for that avalanche of new users and also the rising Steem price in the month ! Its probably going to be related in the mainstream media and by that I mean Facebook which we all know the power and virality speed thanks to sharings without forgetting Twitter.

The Chinese Influence on Steem Demand

You probably recall of the recent BTC price spike during these two last months and you know that we own it to the Chinese demand. In fact the price went from US $449 to US $675 ( 07/02/2016 ) and the market cap went from 7 billions to 10 billions and a half approximately. Knowing that the Chinese demand absorbed a major part of this market cap increase, there's a considerable part of new players in the world of cryptos. Moreover as Coinmarketcap.com is one of the most known site in the crypto world and that Steemit is well ranked in it, it might happen that after the 4th July these Chinese players gives interest in Steem as they would see it gaining some places in the ranking.

Likewise, from what I have understood , the last update 0.8.3 will give extra SP to a user named " Wang " which acts as a Chinese Ambassador on Steemit . This will reduce the remuneration of certain users, but it will ultimately strengthen the future of Steemit by attracting new users. Remember that everything has a price , so you have to sometimes make some sacrifices now so that everyone can enjoy its benefits in the future. If some readers might do a simple recap of the upcoming 0.8.3 update I would appreciate that because I sometimes have troubles with the English level on this site.

Btc, Btc and Btc again

To all this must be added another factor to be taken into account , this is the BTC Halving , the event that will see the reward of BTC minors halved.
You can watch the time left before it takes place here . There have already been reactions to it between May and June along with the explosion in Chinese demand but this was only the first period of increase since in my opinion the miners were pushed to purchase seeing more Chinese applicants jostle for the BTC . The second phase of increase has already been started since June 29 (price $ US638 ) and this may influence the price of Steem upward for the next few days as most cryptocurrencies value ​​depend on the BTC .

Another reasons why people would want to buy Steem

Creating original and interesting content is sometimes hard to do but voting for one is way easier. Once enough people will hear about Steemit they will jump on the occasion to buy some to get Steem Power ( SP ). They vote and they get more money ( proportionally to the SP they hold ), if you can find an easier way to make a penny that easy without getting in the illegal world Im all ears !
Moreover, posting and voting are not the only ways to get yourself some bucks as we can use SP as savings with a much bigger interest rate than the banks offers and less risky.
One final reason is that the half of their reward is in Steem Dollars ( which is itself an asset that has the same fluctuations as the Dollar ) and they will see it as a non-compromisable reward as the Dollar is a long-term stable currency not like BTC so they wouldn’t have to worry about it.

Steemit’s liquid currency is promised to a nice adventure

There is already a ton of articles that praises the website check by yourselves thanks to the innovative concept proposed by @ned and @dantheman; the founders of Steemit, so imagine now all the medias publishing after the 4th July payments and the huge demand for Steem !
Furthermore, the more we get closer to the fateful date and the more the user base increases and thus the more demand there is.
The currency is definitely destined to a bright future.

Even given such positives points, Steem can still loose value

Keep in mind that the price can still go down on the 4th of july as if there are more people cashing out than people buying Steem, so depending on the issue of the 4th July, the best moment for investing in Steem may be now or during the payment date. To complete this post I just want to recall that If you invest in Steem, you’re betting on the long term so don’t panick if you see a decreasing arrow in Steem’s charts and keep calm !